Dr. Mehmet Oz, the current administrator of the Centers for Medicare and Medicaid Services (CMS), says artificial intelligence avatars are the future of rural healthcare.
“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,” Oz said during a recent discussion alongside HHS Secretary Robert F. Kennedy Jr.
The remark came as part of a larger conversation around the Trump administration’s new mental health initiative called Action for Progress.
The event spotlighted a series of programs aimed at transforming how addiction and behavioral health are treated in the U.S., particularly in underserved areas.
AI Meets Rural Care
Oz explained that the avatars, powered by generative AI, can intake patient information, read subtle emotional cues, and flag concerns to a real doctor.
“Just catch the patient, customize to what their needs are, understand what they’re up to,” he said.
“They’ll pick up subtle little nuances in how you’re saying things. That will alert the avatar, but more importantly, the doctor they’re going to report to.”
He stressed that clinicians would remain involved, saying human connection remains crucial.
“There will always be a doctor,” he said. “Fifty percent of our cortex is designed to read the face of the person in front of you.”
Oz also urged people to explore these tools themselves: “Please go play with these tools. They’re unbelievable.”
A System Under Strain
Oz’s comments come as the healthcare landscape in rural America faces new pressures.
Many providers in rural areas depend heavily on Medicaid funding to survive. That funding took a major hit this summer after President Donald Trump signed the “One Big Beautiful Bill” into law on July 4.
The bill, celebrated by Republicans as a sweeping reform, includes over $900 billion in Medicaid cuts over 10 years.
It also imposes work requirements that are expected to result in 7.5 million more Americans losing coverage by 2034, according to the Congressional Budget Office.
“You can expect those places to be impacted by now having people who don’t even have Medicaid,” said Tim Layton, a public policy professor at the University of Virginia, according to CNN.
“With fewer people to spread fixed costs across, it becomes harder and harder to stay open.”
Augusta Medical Group in Virginia announced the closure of three rural clinics, directly citing the new law. One of those clinics served Buena Vista, a town of about 6,600 residents along the Blue Ridge Mountains.
Political Tensions
Democrats have pounced on the closures. Virginia gubernatorial candidate Abigail Spanberger visited Buena Vista on the first day of early voting, calling the bill a disaster.
“This is not a rainy day. This is a bad bill that came out of Washington,” Spanberger said.
“They are throwing those costs on the state, and in the interim, people will fall off of their health care.”
Meanwhile, Republicans have pointed to a $50 billion rural health fund included in the legislation as a solution. Oz called it a way for struggling systems to “start to thrive” if the money is invested wisely.
Critics argue the fund is not enough. The Kaiser Family Foundation estimates rural Medicaid spending will decline by $137 billion, nearly triple what the fund provides.
Long-Term Vision
Oz and RFK Jr. both emphasized a need to shift from fee-for-service models to outcome-based care that rewards long-term recovery, not relapse.
RFK Jr., a recovering addict himself, said addiction recovery must be rooted in spiritual and community connection.
“Addiction is a disease of isolation,” he said. “The ultimate solution is reconnecting people to community.”
Oz echoed that sentiment while underscoring how technology like AI avatars can support, not replace, human-led care in under-resourced areas.
“If we do it right, we’ll build a much more sustainable healthcare system around mental health issues,” he said.
As rural clinics continue to close and political tensions flare, one thing is clear: both sides agree the system is broken.
The real debate now is what, or who, should fix it.