Healthcare

How One Health System CEO Built a Medical School to Tackle Rural Doctor Shortages

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Why do so many healthcare initiatives—no matter how well-funded or data-driven—fail to change patient behavior?

Healthcare organizations across the country are facing a growing workforce crisis—but nowhere is it more acute than in rural America.

In this episode of the Healthcare Success Podcast, I’m joined by Dr. Kenneth Holmen, President and Chief Development Officer of CentraCare, to explore one of the most urgent challenges in healthcare today: the physician and workforce shortage—and what it will take to fix it.

From an aging population and declining birth rates to decades of underinvestment in medical education, we unpack the structural issues driving the shortage—and why rural communities are being hit the hardest.

A central theme of our conversation is this: healthcare systems can’t rely on traditional pipelines anymore. To survive and thrive, they must take ownership of their future workforce. For CentraCare, that meant partnering with the University of Minnesota to help launch a new medical school designed specifically to train physicians for rural communities.

We also explore what makes this model different—from recruiting students with rural roots to creating a “hub and spoke” training system that integrates education directly into community-based care.

Finally, we discuss what it really takes to make something like this happen: breaking down silos, aligning stakeholders across healthcare, education, and government, and embracing a new way of thinking about leadership, collaboration, and long-term investment.


Why Listen?

If you’re a healthcare executive, marketer, or leader concerned about workforce shortages, rural access, or the future of healthcare delivery, this episode offers a compelling, real-world case study.

You’ll hear:
• Why the physician shortage is accelerating—especially in rural areas
• How workforce challenges extend far beyond physicians
• Why traditional recruitment strategies aren’t enough
• How one system built its own pipeline through medical education
• What it takes to align healthcare, academia, and government
• Why leadership and mindset—not just resources—are the real barriers

Key Insights and Takeaways

  1. The physician shortage is a long-term structural problem. Population growth, aging demographics, and stagnant medical school capacity have created a widening gap between supply and demand—especially in rural communities.
  2. Rural healthcare faces a disproportionate burden. Because most training programs are located in urban areas, physicians are far more likely to practice in cities, leaving rural regions underserved.
  3. “Grow your own” is the most sustainable solution. Training students from rural backgrounds—and training them in rural environments—increases the likelihood they will stay and practice in those communities.
  4. Healthcare systems must take ownership of workforce development. Relying solely on academic institutions to produce talent is no longer sufficient. Health systems must actively participate in education and training.
  5. Siloed thinking is the biggest barrier to change. Progress requires collaboration across healthcare providers, academic institutions, government, and communities—something that traditional models often resist.

6. Culture and purpose are powerful recruitment tools.

Physicians who are motivated by service, community, and purpose are more likely to thrive—and stay—in rural healthcare environments.

7. Scale alone won’t solve the problem.
Bigger systems aren’t necessarily better. What matters is “systemness”—alignment, best practices, and shared goals across the organization.

8. Leadership requires clarity, confidence, and resilience.
Solving complex challenges like workforce shortages requires leaders who can create clarity in uncertainty, take criticism, and persist over time.

“In the face of enormous ambiguity, leaders have to create clarity.”
Dr. Kenneth Holmen

Dr. Kenneth Holmen

President & CEO, CentraCare

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Note: The following AI-generated transcript is provided as an additional resource for those who prefer not to listen to the podcast recording. It has been lightly edited and reviewed for readability and accuracy.

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