Senate Committee Seeks Information on Rural Health Care and E-Rate Consultant Fees

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On May 10, Senators John Thune (R-S.D.) and Cory Gardner (R-CO) of the U.S. Senate Committee on Commerce, Science, and Transportation sent a letter to FCC Chairman Tom Wheeler and USAC CEO Chris Henderson requesting information on fees charged by Rural Health Care (RHC) and E-rate consultants.  Of particular concern to the Senators are alleged “application mills,” a handful of individuals and consulting firms that contract  with hundreds of health care providers to file their applications in exchange for a possibly excessive percentage of the resulting USF funding.  Specifically, the Committee wants information regarding:

  • what, if any, measures are in place to track how much RHC support is paid to consultants;
  • what rules, if any, exist to limit fees paid to USF consultants;
  • whether planned RHC and E-rate audits investigate the amount of money paid to consultants; and
  • The status of RHC and E-rate audits that have not been approved by the USAC Board of Directors.

USAC and the FCC have until May 24 to respond to the data request.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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