§  54.601   Eligibility.

   (a) Health care providers. (1) Except with regard to those services
   provided under §  54.621(b), only an entity that is either a public or
   non-profit rural health care provider, as defined in this section,
   shall be eligible to receive supported services under this subpart.

   (2) For purposes of this subpart, a “health care provider” is any:

   (i) Post-secondary educational institution offering health care
   instruction, including a teaching hospital or medical school;

   (ii) Community health center or health center providing health care to
   migrants;

   (iii) Local health department or agency;

   (iv) Community mental health center;

   (v) Not-for-profit hospital;

   (vi) Rural health clinic; or

   (vii) Consortium of health care providers consisting of one or more
   entities described in paragraphs (a)(2)(i) through (a)(2)(vi) of this
   section.

   (3) For purposes of this subpart, a rural health care provider is a
   public or non-profit health care provider located in a rural area, as
   defined in this subpart.

   (i) Notwithstanding the definition of “rural area” in §  54.5, any
   health care provider that is located in a “rural area” under the
   definition used by the Commission prior to July 1, 2005, and received a
   funding commitment from the rural health care program prior to July 1,
   2005, is eligible for support under this subpart.

   (ii) [Reserved]

   (4) Each separate site or location of a health care provider shall be
   considered an individual health care provider for purposes of
   calculating and limiting support under this subpart.

   (b) Consortia. (1) An eligible health care provider may join a
   consortium with other eligible health care providers; with schools,
   libraries, and library consortia eligible under Subpart F; and with
   public sector (governmental) entities to order telecommunications
   services. With one exception, eligible health care providers
   participating in consortia with ineligible private sector members shall
   not be eligible for supported services under this subpart. A consortium
   may include ineligible private sector entities if such consortium is
   only receiving services at tariffed rates or at market rates from those
   providers who do not file tariffs.

   (2) For consortia, universal service support under this subpart shall
   apply only to the portion of eligible services used by an eligible
   health care provider.

   (c) Services. (1) Any telecommunications service that is the subject of
   a properly completed bona fide request by a rural health care provider
   shall be eligible for universal service support, subject to the
   limitations described in this paragraph. The length of a supported
   telecommunications service may not exceed the distance between the
   health care provider and the point farthest from that provider on the
   jurisdictional boundary of the largest city in a state as defined in
   §  54.625(a).

   (2) Internet access and limited toll-free access to internet. (i) For
   purposes of this subpart, eligible Internet access is an information
   service that enables rural health care providers to post their own
   data, interact with stored data, generate new data, or communicate over
   the World Wide Web.

   (ii) Internet access shall be eligible for universal service support
   under §  54.621(a).

   (iii) Limited toll-free access to an Internet service provider shall be
   eligible for universal service support under §  54.621(b).

   (3) Advanced telecommunications and information services as provided
   under §  54.621.

   (d) Allocation of discounts. An eligible health care provider that
   engages in eligible and ineligible activities or that collocates with
   an entity that provides ineligible services shall allocate eligible and
   ineligible activities in order to receive a prorated discount for
   eligible activities. Health care providers shall choose a method of
   cost allocation that is based on objective criteria and reasonably
   reflects the eligible usage of the facilities.

   [ 62 FR 32948 , June 17, 1997, as amended at  64 FR 66787 , Nov. 30, 1999;
    68 FR 74502 , Dec. 24, 2003;  70 FR 6372 , Feb. 7, 2005;  73 FR 19438 , Apr.
   10, 2008;  76 FR 37282 , June 27, 2011]

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