§ 54.636   Eligible participant-constructed and owned network facilities for
consortium applicants.

   (a) Subject to the funding limitations under § § 54.675 and 54.638 and the
   following  restrictions, consortium applicants may receive support for
   network facilities that will be constructed and owned by the consortium (if
   the consortium is an eligible health care provider) or eligible health care
   providers within the consortium.

   (1) Consortia seeking support to construct and own network facilities are
   required to solicit bids for both:

   (i) Services provided over third-party networks; and

   (ii) Construction of participant-owned network facilities, in the same
   request for proposals. Requests for proposals must provide sufficient detail
   so that cost-effectiveness can be evaluated over the useful life of the
   proposed network facility to be constructed.

   (2) Support for participant-constructed and owned network facilities is only
   available  where the consortium demonstrates that constructing its own
   network facilities is the most cost-effective option after competitive
   bidding, pursuant to § 54.642.

   (b) [Reserved]

   [ 78 FR 13987 , Mar. 1, 2013]

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