Skip to main content

Beyond health metrics

A data-driven framework for making and measuring sustainable rural health investments

The Rural Health Transformation Program (RHTP) presents a pivotal opportunity for states to rethink how they strengthen rural healthcare delivery and economic resilience. While today’s challenges may feel unprecedented, states are not starting from scratch. The COVID-19 pandemic generated a blueprint that demonstrated how real-time data sharing, rapid-cycle evaluation, cross-agency collaboration, and flexible resource deployment can drive measurable health and economic impact, even in the most resource-constrained environments.

These experiences revealed a set of enduring lessons that remain central to how states can strengthen rural health systems today. By reframing RHTP through the lens of these tested approaches, state leaders can demonstrate that improving rural health is not only a clinical priority but a strategic economic investment. This article outlines a data-driven framework to help state leaders make evidence-based investment decisions and demonstrate the strategic use of funds for sustainable solutions with long-lasting impacts on federal funders, state legislators, and the communities they serve.

COVID-19 lessons for rural health transformation

1

Real-time reporting drives faster and more strategic decision-making: COVID surveillance tools helped states stay ahead of emerging needs through continuous monitoring, demonstrating the value of similar monitoring and surveillance tools today to track key performance indicators, streamline compliance, and enable rapid evaluation.

2

Predictive modeling helps leaders plan beyond immediate crises: Forecasting methods used during COVID demonstrated the usefulness of forward-looking analysis (e.g. anticipating hospital burden), reinforcing the advantages of utilizing predictive modeling today to project long-term clinical and financial outcomes of rural health initiatives beyond the short-term reporting cycles.

3

Holistic approaches reveal benefits traditional metrics miss: COVID accelerated recognition that public health improvements generate far-reaching societal and economic gains, which can be quantified using Social Return on Investment (SROI). States can leverage SROI analysis to assign a clear dollar value to benefits such as improved workforce productivity and health outcomes.

4

Economic ripple effects matter: As with pandemic response funding, which stimulated local employment, generated tax revenue, and strengthened community resilience, rural investments can produce similar economic benefits. By utilizing Economic Impact Analysis (EIA), states can quantify how grant dollars multiply through the local economy as jobs, tax revenue, and overall growth.

Challenges to reporting the economic success of rural health initiatives

While the economic case for the RHTP is compelling, demonstrating its success is complex. State leaders face significant hurdles that obscure the true return on investment (ROI) and threaten long-term support. These challenges fall into two primary areas:

  1. The measurement dilemma—capturing long-term, holistic value: The most profound economic benefits of RHTP are difficult to quantify with traditional metrics, especially as decision makers are often required to respond rapidly to community needs with limited information at hand.
  2. Strategic pressures—navigating compliance and data scarcity: Translating this strategic vision into on-the-ground reality requires navigating significant day-to-day pressures that extend beyond the initial planning stages. Beyond measurement, state leaders face intense operational pressures that hinder their ability to demonstrate value effectively.

States can take an economic approach to demonstrate impact and plan for sustainable initiatives

To secure support and justify long-term investment, state leaders must demonstrate the value of transformation programs today, even before all the results are in. An economic monitoring and evaluation framework that is built on a logic model makes this possible. By applying modeling and statistical analysis, states can move beyond hope and instead forecast the tangible, long-term outcomes of their initiatives. This process begins with establishing a clear data baseline to understand the current state of rural health. From there, predictive modeling can be used to project how specific interventions will change that baseline over time, creating a powerful, evidence-based narrative about the future value of today’s investments.

The following set of tools can be used to achieve these objectives:

1

Monitoring and surveillance tools: To prevent funding clawbacks and help maximize potential federal funding, states should regularly monitor outputs to help ensure that they are approaching their pre-specified milestones. Monitoring and surveillance tools track key performance indicators, developed in conjunction with state policymakers, to streamline performance reporting, allowing for rapid cycle evaluation. These tools also establish a clear baseline of where states currently stand, which is essential for measuring progress and comparing actual results to projected outcomes.

2

Forecasting of initiative outcomes: RHTP initiatives may take time to generate significant and measurable improvements in outcomes. Predictive modeling gives policymakers the ability to see beyond the short-term and better understand how initiatives could improve population health outcomes in the long term.

3

Holistic value measurement with social return on investment: Policymakers concerned with the broader societal benefits of initiatives can use SROI to capture both the economic gains of a healthy and more productive workforce, as well as the value of policy objectives such as better maternal or chronic disease outcomes.

4

Foundational assessment with economic impact analysis: To address policymakers’ concerns about the near-term economic impacts of rural policy initiatives, Economic Impact Analysis (EIA) can help show how far grant dollars go through the broader economy.

A new narrative for rural investment

RHTP presents an opportunity for states to redefine rural healthcare; however, data scarcity that is common in rural environments, as well as the difficulties unique to evaluating the outcomes of health initiatives, which may not be reflected in the short-term financial metrics, present challenges to assessing the effectiveness of any health program.

The COVID-19 pandemic demonstrated solutions that could also be applied to challenges associated with rural health. Applying a rigorous framework that identifies and monitors key performance indicators and borrows from a toolbox of economic analyses empowers leaders to make evidence-based and defensible investment decisions to demonstrate success to federal funding administrators, state legislators, and the communities they serve. This, in turn, allows states to shift the narrative from simply administering a health program to strategically orchestrating a transformation plan that improves both health and economic outcomes of their residents.

Contact us

Download the paper and contact us to explore how our data-driven framework can help you measure what truly matters, demonstrating long-term value and securing sustainable funding.

Dive into thinking:

Beyond Health Metrics

A data-driven framework for making and measuring sutainable rural health investments

Download PDF

Meet our team

Image of Erkan Erdem
Erkan Erdem
Principal, Economic & Valuation Services, KPMG US

Thank you!

Thank you for contacting KPMG. We will respond to you as soon as possible.

Contact KPMG

Use this form to submit general inquiries to KPMG. We will respond to you as soon as possible.
All fields with an asterisk (*) are required.

Job seekers

Visit our careers section or search our jobs database.

Submit RFP

Use the RFP submission form to detail the services KPMG can help assist you with.

Office locations

International hotline

You can confidentially report concerns to the KPMG International hotline

Press contacts

Do you need to speak with our Press Office? Here's how to get in touch.

Headline