Article

Rural health care delivery is evolving

March 27, 2025

Key takeaways

Telemedicine and mobile health clinics are improving access to care in rural areas.

Workforce shortages and long travel distances hinder consistent health care access.

Regulatory challenges and broadband infrastructure limitations impact rural health care delivery.

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Health care Economics M&A integration

Rural health care in 2025 faces significant challenges but is also experiencing innovative transformations. Over 60 million Americans currently live in areas identified as rural, including tribal, frontier and geographically isolated areas. These communities face unique barriers to accessing care due to the limited availability of health care providers, including those offering primary care, specialty care and home- and community-based services, with residents often needing to travel long distances to obtain care.

The disparities in health care delivery in rural communities can lead to poorer health outcomes and reduced life expectancy for residents. The industry is addressing these challenges by deploying innovative solutions, including telemedicine, mobile health clinics and policy changes, that aim to improve health care access and quality in rural settings. Ensuring that all individuals, regardless of where they live, have access to essential health services is key to achieving health equity.

Navigating the current challenges

More than a quarter of Americans reported they are not up to date on health screenings and immunizations in a recent national survey by the American Association of Nurse Practitioners. Identifying these challenges is one way C-suite leaders and innovators are devising strategies for improved health care outcomes.

According to the Bureau of Health Workforce (formerly known as the Bureau of Health Professionals), about 20% of the U.S. population—more than 50 million people—lives in rural areas, but only 9% of the nation's physicians practice in rural communities. Some residents need to travel long distances to access these services, which can be financially and logistically challenging, particularly for older adults, people with disabilities or those without reliable transportation.

The infrastructure for rural health care typically consists of a combination of physical health care facilities, mobile and telemedicine resources, a health care workforce, and community-based services designed to meet the unique needs of rural populations. Given the long distances, weather-imposed challenges and lengthy wait times, people struggle to access consistent care. A shortage of health care professionals adds to rural patients’ challenges. Doctors, nurses and specialists are hard to retain in rural settings due to factors such as lower salaries, fewer professional development opportunities and the social isolation that can come with living in remote areas. This places an additional burden on existing rural health care facilities that may lack essential health care services, especially specialized care such as cardiology, mental health and oncology.

Overcoming regulatory hurdles

Rural health care faces several regulatory challenges that can impact the quality, accessibility and sustainability of care. These challenges often stem from policies and regulations that may not be tailored to the unique needs of rural populations. For example, rural health care providers, particularly smaller clinics and critical access hospitals, often rely heavily on Medicare and Medicaid to fund their services. Reimbursement rates for these programs are often lower in rural areas compared to urban settings, making it financially difficult for rural health care facilities to stay open and adequately staffed. Lower patient and claim volumes can also be more complicated for rural providers, leading to inefficiencies.

Telemedicine became a lifeline during the pandemic, enabling providers and organizations to remain connected with patients and earn revenue rates equivalent to in-person sessions. This is an increasingly important tool in rural health care delivery, helping to bridge the access gap for those who live far from health care facilities. However, telemedicine is often subject to complex and inconsistent regulations across states. Licensing requirements, reimbursement policies and insurance coverage for telehealth services can vary, creating barriers for providers and patients. On top of navigating regulatory inconsistencies, many rural areas still lack the necessary broadband infrastructure to fully benefit from telemedicine.

Driving health care equity with technology

Several technology solutions are making a significant impact on improving health care delivery in rural areas by increasing access, enhancing efficiency and overcoming the geographical barriers often faced by rural populations.

Remote patient monitoring (RPM) involves using devices like blood pressure cuffs, glucose monitors, pulse oximeters and other medical equipment to track patients' health data from home. This data is transmitted to health care providers who can monitor and assess the patient’s condition remotely. RPM is especially valuable for managing chronic conditions such as diabetes, heart disease and hypertension, allowing for timely interventions without requiring patients to visit a health care facility.

Expanding broadband internet access is crucial for enabling RPM and many other health care technologies, especially telemedicine and telehealth. Improving internet connectivity in rural areas and ensuring that residents can take full advantage of digital health solutions can provide more opportunities for equity of care.

Finally, artificial intelligence and machine learning technologies are being used to analyze large amounts of health data to improve decision making and predict health outcomes. In rural health care, AI is assisting in identifying patterns or risks in patients’ health records, providing early warnings about potential health issues such as heart disease or stroke. AI-powered tools can also aid health care providers in diagnosing conditions, recommending treatments and improving patient care, reducing the burden on rural providers, who may have limited resources.

Moving forward

Overall, the infrastructure for rural health care is evolving to meet the needs of underserved populations, but it continues to face challenges related to resource limitations, access to technology and workforce shortages. Health care leaders should leverage strategies and technology to bridge the gaps, with the goal of improving health care for individuals as well as communities in rural areas.

CONSULTING INSIGHT: Technology transformation

Effective digital transformation is not something that happens overnight. However, it also does not have to be a disruptive, resource-intensive process. Is your technology meeting your current and future needs and delivering on its anticipated value? Learn how to strengthen your technology selection, integration and usage strategies, leveraging innovation to optimize your operations.

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