Exploring AI Solutions for Rural Health Care
Centers for Medicare and Medicaid Services Administrator Mehmet Oz speaks at an Action for Progress event about plans to transform behavioral health, on Feb. 2, 2026, in Washington, D.C.
Heather Diehl/Getty Images
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Heather Diehl/Getty Images
Dr. Mehmet Oz is advocating for a contentious solution to the health care issues faced by rural America: the integration of artificial intelligence (AI).
At a recent event hosted by Action for Progress, a coalition dedicated to enhancing behavioral health care, Oz, the head of the Centers for Medicare and Medicaid Services, stated, “There’s no question about it — whether you want it or not — the best way to help some of these communities is gonna be AI-based avatars.” He believes AI could significantly enhance the ability of doctors to reach more patients without risking their well-being.
This AI initiative is part of the Trump administration’s $50 billion strategy aimed at modernizing health care in rural areas. The plan includes implementing technology such as digital avatars for conducting initial medical assessments, robotic systems for remote diagnostics, and drones to provide medication in areas lacking pharmacies.
Oz even proposed substituting in-person obstetric care with devices guided by AI. “We can use robots for ultrasounds on pregnant women,” he remarked, emphasizing that the technology could offer digitized insights without a human operator needing to interpret the results directly.
A representative from the Centers for Medicare and Medicaid Services clarified that Oz’s comments were intended to highlight the potential of responsibly exploring tools aimed at expanding the capabilities of licensed clinicians rather than replacing them altogether. The agency supports AI-driven tools that are evidence-based and patient-centered, provided they are implemented with clinical oversight.
Challenges Facing Rural America
Oz’s remarks come at a time when rural hospitals are struggling due to significant budget cuts from the One Big Beautiful Bill Act signed by President Trump. The law is projected to cut federal Medicaid funding by approximately $1 trillion over the next decade, heavily impacting rural healthcare facilities.
Rural hospitals were already under financial strain. According to nonpartisan KFF research, more than 190 rural hospitals have closed between 2005 and early 2024—about 10% of all rural hospitals in the U.S.—due to financial difficulties. In some areas, residents now have to travel long distances for essential and emergency medical services.
People residing in rural regions are statistically more likely to die prematurely from five major causes: heart disease, cancer, chronic lower respiratory diseases, strokes, and unintentional injuries. This information comes from a 2024 report by the Centers for Disease Control and Prevention, which asserts that many of these fatalities could be averted through timely and quality care.
The CDC identified several contributing factors, including limited access to healthcare providers, longer travel distances, fewer emergency services, high poverty rates, and lower rates of insurance coverage as key issues.
Fewer Healthcare Professionals?
Carrie Henning-Smith, an associate professor at the University of Minnesota and co-director of its Rural Health Research Center, argues that introducing AI avatars would eliminate a vital component of healthcare: the human connection.
“Healthcare has always revolved around human relationships,” she emphasized. “If the first and only provider is an avatar, we lose trust and continuity.”
Henning-Smith also expressed concern over the potential risks of testing unproven technologies on already underserved populations, stating, “I dislike the notion of rural communities being used as experiments for AI in healthcare. There could be many negative outcomes.”
Additionally, she pointed out logistical issues, such as inconsistent internet access, low health literacy, and fragile transportation systems. If AI systems require a stable digital framework to function well, they could exacerbate existing disparities.
Supporters’ Perspective on AI
Despite the concerns, some health technology leaders argue that AI could indeed benefit rural communities. Instead of replacing doctors, they suggest it can alleviate administrative burdens that hinder patient care.
Matt Faustman, co-founder and CEO of Honey Health, promotes AI tools designed to streamline administrative tasks for providers, such as managing documentation, authorizations, and patient records. He noted that many healthcare providers are overwhelmed by paperwork, especially in rural areas where staffing is limited.
“Thirty to forty percent of a provider’s time can be absorbed by administrative chores,” Faustman stated. He believes automating these tasks could enable clinicians to dedicate more time to patient care and help small hospitals expand without needing additional administrative staff.
Faustman also mentioned that AI could assist in initial patient assessments in areas where specialists are not readily available. “It can serve as early triage or help connect patients with the appropriate providers,” he added.
The Human Element in Healthcare
Henning-Smith contends that although AI can handle basic duties, it cannot replicate the core aspects of healthcare delivery. “AI cannot interpret body language, tone, or facial expressions,” she explained. “These nuances are crucial in fostering the relationship between a patient and a provider.”
Even accurate AI tools cannot provide the reassurance or cultural sensitivity offered by a trusted clinician. In communities where trust in the healthcare system is already tenuous, losing that human touch could be especially harmful.
She also raised the issue of the economic impact that replacing local jobs with AI technology could cause.
“When healthcare providers in rural areas are employed, their salaries remain in the community,” Henning-Smith pointed out. “However, if those roles are replaced by AI technologies created in Silicon Valley, the economic benefits would not stay local.”
Public Response
Public reaction to Oz’s comments was immediate.
“Do you really think rural communities want AI doctors? They’re still struggling for reliable internet,” one user remarked on X.
Another quipped, “Dr. Oz: ‘We’ve swapped your nurse for a cartoon. Enjoy!’”
Conversely, a few voices supported the concept, arguing that having some care is preferable to none. One user stated, “It may not be ideal, but anything is better than nothing.”
Oz has yet to provide a comprehensive implementation strategy, nor has CMS confirmed that AI avatars will be formally incorporated into its rural health agenda.
Henning-Smith hopes discussions will not solely revolve around cost efficiency. “I wonder if Dr. Oz would opt for an avatar to treat his own family,” she said. “This situation seems to create a two-tiered system—one for those who have resources and another for those who don’t. That should not be acceptable.”
