Minnesota is a state that prioritizes expanding healthcare access. Expanding access can be achieved by implementing telehealth to create healthcare expansion across the state. But what exactly is telehealth? Telehealth is the use of digital information and communication technologies to access health care services, such as remote check in or prescriptions. The response to the Covid-19 pandemic solidified telehealth’s position as a healthcare service that can help treat patients in a remote setting.
Today Minnesota must increase its investment in telehealth development as the state faces rising labor force imbalances. The current MN labor demographics show stagnation, with the labor force only growing 0.2% annually since 2019. At the same time, Minnesota’s labor force is aging, and birth rates show a steady decline. Figures 1 and 2 highlight these trends.
Figure 1: Minnesota Workforce Aging by Region, 2014-2024
Share of workforce aged 55 and older, 2014 versus 2024, across five Minnesota Department of Employment and Economic Development (DEED) areas including Northwest, Northeast, Southeast, Southwest, and Twin Cities Metro. Note: North Central Minnesota is not included here. Its confirmed data window is 2009-2019, from an older regional profile, and does not align with the 2014-2024 period used by the other regions.
Figure 2: Minnesota total births, 2014–2024
Data comes from the Minnesota Department of Health: the Annual Summary of Minnesota Health Statistics for 2014-2021 (the last year this report series has been published), and the Vital Statistics Interactive Query for 2022-2024 .
The result of an aging workforce leads to an increase in demand of healthcare services often funded through Medicare and Medicaid. The rate at which demand for direct support and senior care services is growing 10 times faster compared to the actual growth of Minnesota’s working-age labor force, with a projected nursing staff shortage of 30,000 by 2030. The declining birth rates across the state reinforce the need for a capable healthcare labor force to facilitate these demands.
Telehealth offers excellent benefits for patient access and cost efficiency. Telehealth allows for a shrinking pool of clinical staff to reach more patients per hour and keeps costs low for seniors and individuals most exposed to Medicaid cuts. Plus, it draws on federal telehealth financial support. Telehealth functions as a genuine efficiency tool for a system straining for both manpower and money. Implementation of AI developments will continue to strengthen telehealth capabilities to empower its already beneficial services.
There are some concerns with telehealth worth noting. Care quality must be met for each patient. Private companies already invest significant amounts of money into telehealth creating questions about the role of Medicare and Medicaid dollars spent on telehealth. Broadband access is not available to every corner of the state. AI risks include technological difficulties and privacy concerns. These are valid concerns.
However, inaction to move forward will result in less access and innovation to improve the telehealth product. By implementing investment in telehealth now, increased time in the marketplace can improve its care quality. The same goes for broadband expansion and innovative developments such as Starlink that lead to quality internet across remote Minnesota areas. Delaying telehealth expansion will lead to loss in care access while telehealth innovation and improvement stagnates.
The state of Minnesota can utilize federal funding through the One Big Beautiful Bill Act (OBBBA) to support telehealth expansion. A provision in OBBBA includes the federal Rural Health Transformation Program (RHTP), which will be spending $50 billion over 5 fiscal years. Minnesota is expected to receive $1 billion for the next five fiscal years including $193 million for FY 2026. The $193 million must be spent by 2027 to continue receiving the expected funding. One of five core RHTP initiatives which is “Invest in Technology, Infrastructure, and Collaboration for Financial Viability,” which applies to telehealth investments across states. Using RHTP funding provides the financial backing necessary to expand telehealth and healthcare access. Private companies investment in telehealth, along with RHTP, provide the financial support to develop telehealth’s capabilities for cheaper and more efficient care quality despite the decreases in Minnesota’s healthcare labor force.
Even with an upcoming healthcare workforce shortage, Minnesotans can innovate around the demographic cliff by using federal money to invest in telehealth.
Carter Johnson is a Summer 2026 Intern with American Experiment.