As for alternatives to paper towels, here's [0] a review of different studies about drying your hands. It's not clear that alternatives to paper towel hand drying are more effective from a health perspective. But obviously cost and environment are the biggest problems.

It seems most harmful microbes are between your nails on your fingertips and paper towels might be more effective with removing microbes on your fingertips, but there is still some controversy about if this even matters overall and which is more effective in removing them from other parts of your hands. Some are also concerned about air dryers blowing up airborne microbes, and I'm personally concerned with the super loud noises (also mentioned in the research below [0])!

Finally, I only see paper towels in every medical center or hospital I've been to.

[0] https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3538484/

Same video at Ted: https://www.ted.com/talks/joe_smith_how_to_use_a_paper_towel

As ridiculous as it may seem that this is a TEDx talk, it was incredibly effective for me. After seeing this about 3 yrs ago, I have never used more than 1 paper towel to dry my hands.

I watched this video more than five years ago (probably 2013), and I still shake my hands out twelve times every single time I wash my hands. This is a phenomenal, memorable presentation.

no sarcasm at all: this is the crown jewel of TED talks.