Collaboration Yields Broadband for North Carolina Telehealth Network

The partners in the North Carolina Telehealth Network (NCTN) project have taken the next step forward in assuring that North Carolina non-profit health care providers have the broadband services needed to improve the health and care of North Carolina citizens by announcing today a $7.2 million contract to connect local public health agencies and free clinics with the NCTN.

The Cabarrus Health Alliance (CHA), the NCTN project coordinator, signed a contract valued at up to $7.2 million with MCNC and the N.C. Office of Information Technology Services (ITS) as a major sub-contractor. According to the contract, MCNC and ITS will supply reliable high-speed broadband services for the Public Health Phase of the NCTN. This phase supports public health agencies, several of the larger free clinics and several community health centers throughout the state. Services for the first wave of 52 sites are planned to start in the next 60 to 90 days with a second wave of about 20 sites soon thereafter. MCNC and ITS will work with private-sector service telecommunications firms including AT&T, Time Warner Cable and CenturyLink to connect these facilities to NCREN. The NCTN project is divided into two phases. The first phase covers local public health agencies and some free clinics and community health centers. The second phase, which covers non-profit and university hospitals, is planned to be awarded by early 2011 and be operational by mid-2011.

Both NCTN phases are supported by a 2007 pilot program award of $12.1 million from the Federal Communications Commission (FCC) as part of the FCC's Rural Healthcare Pilot Program. Cabarrus Health Alliance manages this award. The award is used to subsidize part of the cost of broadband connections for local public health agencies, free clinics, and public and non-profit hospitals. Several for-profit hospitals are expected to participate in the NCTN, but without these subsidies. CHA has obtained formal commitment from the FCC to provide $3.4M in subsidies for the first round of 52 sites under this NCTN phase one contract.