At his confirmation hearing on Wednesday before the Senate Finance Committee, Robert F. Kennedy Jr., Trump’s controversial pick to lead the Health and Human Services, said rural hospitals will be a priority if he is confirmed as health secretary.
Kennedy told the committee that President Trump is determined to end the “hemorrhage of rural hospitals” through the use of AI and telemedicine, and that he asked Kennedy to address the issue if he is confirmed.
“These are innovations that I saw the other day at Cleveland Clinic, which has developed an AI nurse that you cannot distinguish from a human being that has diagnostics as good as any doctor.”
Kennedy added, “We can provide concierge care to every American in this country, even remote parts of Wyoming, Montana and Alaska.”
He said there are opportunities to provide personnel to rural hospitals and that he intends to use his power, because he has seen the priority the issue of rural hospitals has been given by both Democrats and Republicans on this committee.
“I intend to make that a priority if I’m privileged to be confirmed,” Kennedy said.
Kennedy’s comments were in response to questions from Senator John Barrasso, R-Wyo., regarding the financial and workforce challenges facing hospitals in rural communities.
THE LARGER TREND
According to the American Hospital Association (AHA), rural hospitals’ low patient volumes make it hard for them to manage the high fixed costs associated with operating a hospital.
As a result, AHA asserts that rural facilities are vulnerable to policy and market changes, and to Medicare and Medicaid payment cuts.
According to the AHA, the recent economic downturn put additional pressure on rural hospitals, since they already operate with modest balance sheets and have more difficulty than larger organizations accessing capital to invest in modern equipment or renovate aged facilities.
Adding to these challenges, the AHA notes that rural Americans are more likely to be uninsured, have lower incomes, and are, on average, older and less healthy than Americans living in metropolitan areas.
The Trump administration has made a pledge to advance AI in healthcare. Last week, President Donald Trump announced the formation of Project Stargate, an at least $500 billion investment to build the physical and virtual infrastructure to power AI construction, including “colossal data centers” and campuses nationwide. One of its goals is to improve health outcomes.
