The Ad Hoc Healthcare Group filed an Amicus Brief on January 15 to the Supreme Court defending the constitutionality of the Universal Service Fund.
FOR IMMEDIATE RELEASE
Washington, D.C. (February 21, 2025) – On January 15, 2025, the Ad Hoc Healthcare Group, filed an Amicus Brief with the U.S. Supreme Court in support of the preservation of the Federal Communications Commission’s (FCC) Universal Service Fund (USF). The Ad Hoc Healthcare Group Amicus filing fills an important gap in the legal debate over whether Congress has provided the FCC with “intelligible principles” under which to operate the USF, and that is the principal legal issue before the Supreme Court. The outcome of this case will shape the future of essential funding for universal broadband access for healthcare institutions, schools, and libraries across the country.
The Ad Hoc Healthcare Group, comprised of the New England Telehealth Consortium, ADS Advanced Data Services Inc., Community Hospital Corporation, HealthConnect Networks, the North Carolina Telehealth Network Association, the Colorado Hospital Association, and the Southern Ohio Healthcare Network, submitted this brief in support of the Petitioners–the FCC and the Schools, Health & Libraries Broadband Coalition (SHLB). Each of the Ad Hoc Healthcare Group participants facilitates healthcare institutions in their region obtaining broadband connectivity suited for medical use with a focus on rural and underserved communities. Subsidies from the Universal Service Fund’s Rural Health Care program make these medical-grade broadband services universally affordable and accessible.
The Ad Hoc Healthcare Group argues that:
- The FCC’s oversight of the Universal Service Fund is consistent with Congressionally delegated authority which encompasses both Section 254 of the Telecommunications Act of 1996, and Section 201 of the Communications Act of 1934.
- Universal Service Funding should be preserved in its current state.
The Universal Service Administrative Company (USAC) administers the USF’s programs and collects monies for the USF under the direction of the FCC. For the 2021-2023 funding period, the Rural Health Care program alone provided $1,621,136,341 in broadband connectivity funding to healthcare institutions across all 50 states.
“Many hospitals and healthcare providers across the country are facing unsustainable margins. Staffing costs, double digit supply chain cost increases, triple digit cybersecurity insurance cost increases and cuts to federal and state payor programs are just some examples of the drivers of the challenging environment that healthcare providers are facing,” said Rob Jenkins, Senior Director of the Colorado Hospital Association Broadband Services, and initiator of the Ad Hoc Group’s Amicus Brief. “This is why the cost savings healthcare providers realize through Universal Service Funding is so critical to our healthcare system nationwide. It is imperative that this funding is preserved to ensure that our healthcare system can continue to do the life saving work that is so vital to the communities they serve.”
“The Universal Service Fund is a lifeline for healthcare providers nationwide, ensuring that hospitals, clinics, and telehealth networks—especially those in rural and underserved areas—have the connectivity required for modern medical care. Losing the USF would have devastating consequences: hospitals would face skyrocketing costs for broadband, telehealth programs would be severely curtailed, and rural patients would lose access to life-saving remote consultations, specialist care, and real-time medical data sharing,” said HealthConnect Networks President, Jim Rogers. “We are urging the Supreme Court to uphold the FCC’s authority over the USF because without it, healthcare institutions across the country—especially those serving vulnerable populations—will struggle to maintain the connectivity that is now an essential part of patient care. The Supreme Court’s decision will shape the future of broadband access for healthcare, education, and people living in rural America, making it imperative that this funding remains intact to support essential connectivity for all.”
“North Carolina has the second-largest rural population in the country. The NC Telehealth Network Association (NCTNA) leverages the USF’s Rural Health Care program to deliver medical-grade broadband to hundreds of small, rural, under-resourced, and often overlooked healthcare facilities—from the mountains of Western NC to the Outer Banks,” said NCTNA President, Dr. John Graham. “USF subsidies provide critical discounts on these services, enabling providers to access the high-speed connectivity necessary for delivering high-quality healthcare. Reliable broadband allows providers to conduct remote consultations with leading specialists, offer continuous care for patients with chronic conditions, collaborate in real-time with academic medical centers, and reduce emergency room visits through proactive care management. The result: Lower costs, improved access to the best care available, and a better quality of life for North Carolinians—made possible by USF-supported broadband for rural healthcare providers.”
“Medical-grade networks (MGNs) deliver secure, reliable, and high-performance connectivity tailored to meet the demanding needs of modern health care initiatives. Dedicated, symmetric connections guarantee bandwidth, low latency, and speeds (upload and download) to ensure seamless performance,” said Dan Kettwich, President and CEO of ADS Advanced Data Services, Inc. “This robust infrastructure is critical for supporting essential medical applications and enabling real-time performance making MGNs a cornerstone for advancing telehealth and telemedicine services. By empowering health care providers with the connectivity they need, MGNs help improve patient care, reduce costs and expand access to vital health services.”
“The Universal Service Fund has been the backbone of healthcare connectivity for decades, allowing hospitals and healthcare systems to innovate, expand services, and improve patient care through reliable broadband access. The New England Telehealth Consortium (NETC) connects more than 1,350 healthcare sites across Maine, New Hampshire, and Vermont, ensuring that rural hospitals, clinics, and specialty providers have the high-speed, medical-grade broadband necessary for telehealth, electronic health records, and critical care coordination,” said NETC President Brian Thibeau. “As healthcare continues to evolve, the demand for connectivity is only increasing; AI-driven diagnostics, remote patient monitoring, and advanced imaging require significant bandwidth to function effectively. If the Court upholds the challenge against the USF, these facilities will face severe financial strain, jeopardizing telemedicine programs, limiting access to specialists, and ultimately compromising patient outcomes. We urge the Supreme Court to affirm the long-standing authority of the FCC to ensure that universal broadband access remains a priority for the health and well-being of our nation.”
The Supreme Court will conduct oral arguments this spring and will likely render a decision in June or July of 2025. The case stems from challenges initiated by a group of individual respondents and Consumers’ Research and examines the constitutional validity and extent of the FCC’s authority to oversee the Universal Service Fund (USF).
The Ad Hoc Healthcare Group’s Amicus Brief highlights these key points:
- The Universal Service Fund rate is not unconstitutional because the Communications Act in its entirety provides intelligible principles to the FCC, and the FCC maintains all control over how USAC manages and administers the Universal Service Fund. The Brief notes that Section 254 of the Telecommunications Act of 1996 must be understood in conjunction with Sections 201(b), and 206-208 of the Communications Act of 1934.
- The FCC has long had clear statutory authority to decide if rates charged to consumers for interstate telecommunications are “just and reasonable.” The Federal Universal Service Fund Charge is a component of the rate charged by all providers of interstate telecommunications. USAC calculates but does not set the USF rate, and Congress has provided the FCC with clear authority to ensure the rate remains just and reasonable.
- This case is not moot. Sovereign immunity doesn’t apply because the money received to support the Universal Service Fund belongs to USAC, not the federal government.
READ THE OPENING BRIEF HERE:
Contact: Jeff Mitchell, <jeff@mitchlawdc.com> James Troup, <troup@fhhlaw.com>
###
About the Ad Hoc Healthcare Group Participants:
The Ad Hoc Healthcare Group consists of not-profit entities who facilitate the participation of consortia of health care providers in the Rural Health Care program, a hospital association whose members participate in the program as a consortium, and for-profit consulting groups which assist health care providers participating in the program.
The New England Telehealth Consortium – NETC is working toward better health care in New England through improved telecommunications. Goals of the project include, but are not limited to developing telehealth infrastructure, access to Internet2, and improving the transmission of electronic health records in one of the nation’s most rural regions. https://www.netelc.org/about.html
ADS Advanced Data Services Inc.- Founded in 1991, ADS has established itself as a trusted partner in delivering comprehensive solutions for data, voice, and video telecommunications, as well as strategic technology planning. Since 2001, we have specialized in consulting on USF projects, leveraging decades of expertise to help clients achieve their connectivity and communication goals. In addition to supporting FCC programs, ADS actively works to secure client funding through NTIA, USDA, and other funding initiatives, offering expert guidance to navigate the complexities of these programs. Our commitment extends beyond providing Professional Information Technology Services; we advocate for equitable broadband access, recognizing its critical role in fostering economic development and bridging the digital divide. ADS empowers organizations with the tools, resources, and strategic insights they need to thrive in an increasingly connected world. Our dedication to broadband advocacy and innovation underscores our mission to build stronger, more connected communities. https://www.adsadsi.com/about_ads.asp
Community Hospital Corporation- Community Hospital Corporation offers practical solutions that help community hospitals enhance efficiencies, improve quality and strengthen financial stability. CHC owns, manages and consults with hospitals through CHC Hospitals, CHC Consulting and CHC ContinueCARE, with the purpose to collaborate with partners and bring innovative solutions to support the vibrancy and accessibility of community healthcare. https://chc.com/
HealthConnect Networks – HealthConnect Networks helps healthcare providers receive up to 65% subsidy on networking costs through the Healthcare Connect Fund (HCF) program. HealthConnect Networks equip healthcare facilities with efficient and cost-effective network solutions that enhance patient care and improve operational effectiveness. https://healthconnectnetworks.com/
The North Carolina Telehealth Network Association- The North Carolina Telehealth Network Association (NCTNA) is a dynamic, member-led nonprofit that works to connect and empower North Carolina’s public and non-profit healthcare providers with medical-grade broadband connectivity services. www.NCTNA.org
The Colorado Hospital Association- Colorado Hospital Association (CHA) is the leading voice of the Colorado hospital and health system community. Representing more than 100 hospitals and health systems throughout the state, CHA serves as a trusted, credible, and reliable resource on health issues, hospital data, and trends for its members, media, policymakers and the general public. Through CHA, Colorado’s hospitals and health systems work together in their shared commitment to improving health and health care in Colorado. https://cha.com/about-us/
The Southern Ohio Healthcare Network- The Southern Ohio Health Care Network is a nonprofit collaborative network of providers advancing healthcare in the region through broadband. https://sohcn.org/
Press Contact:
Jordan Rogers
Correspondent
Ad Hoc Healthcare Group
jordan.rogers@nctna.org
