I don't have any problem with a phrase like "was employed in the rural medical practice of Eratyra". However, this may reflect my British background. In the UK it's common to talk about, for example, "a three-doctor practice", even when referring to the National Health system.
It may be different in the US, and hence in American English, and as for Australian, South African, and so on ... who knows?
I think the "correct" answer to this question will probably depend on the style of English that is required by the end client.
I agree with Eliza that "hired at the rural medical practice" is wrong. No native speaker would ever say that. However "rural medical practice" gets 346,000 hits on Google.
http://www.google.gr/search?q="rural medical practice"