Advances in technology and health care delivery have included the use of telemedicine and telepsychology for crisis intervention, assessment, treatment, and education of patients. The use of telemedicine and telepsychology is examined for a variety of health care services to rural America. Telehealth has been considered a partial solution to the problems of delivering health care to remote and underserved areas. New systems of managed care have recognized that unequal geographic distribution of health care resources and the need for cost-effective health care provision necessitates new models for assessment, treatment, prevention, and consultation. Telehealth is defined, and models for telehealth are presented. Satellite transmission is at the cutting edge of telehealth; clinical applications are listed. The application of technology advances to the interface of education and healthcare is discussed. Changing patterns of school health care delivery are summarized. A program for "Rural Utilities Services-Distance Learning and Telehealth applications to school districts" in rural Kentucky is described. Issues of confidentiality and service provision to be addressed are listed; these are especially important for telehealth applications in psychotherapy. (EMK)