Rural Health Care

Step 4: Sign a Contract for Service

After the 28-day competitive bidding period has concluded, an HCP should determine which service provider has proposed the most cost-effective service. The HCP may sign a contract with that service provider.

The HCP or its authorized representative must not select a service provider or enter into a contract or purchase agreement with a service provider until at least 28 days after the Description of Services Requested and Certification Form (FCC Form 465) is posted on the USAC website. This is the Allowable Contract Selection Date (ACSD).

A health care provider with existing service may continue to receive (non-supportable) service during the 28-day posting period, but must not select a service provider to continue the service beyond the ACSD until the ACSD has passed. Entering into an agreement prior to the ACSD could disqualify the HCP from receiving benefits under the Rural Health Care Program for services selected under those agreements.

If a health care provider signs a long-term contract after its ACSD, it will be exempt from the 28-day posting for the original term (no optional extensions) of the contract. However, applicants are encouraged to post Form 465 each year since relying on an expired or otherwise inadequate or non-binding contract to avoid the 28-day posting requirement could result in denial of support.

After the 28-day bidding period has ended and a service provider has been chosen, the HCP may sign a contract. The service provider chosen must be a common carrier in order for the HCP to receive funding. In order to have the contract recognized by RHCD as "evergreen", the contract between the HCP and the service provider must contain the following:

  • Signed and dated by both the HCP and the service provider
  • Contract term
  • Address where service will be provided
  • Type of service
  • Cost of service

 


Last modified on 7/14/2010