I (Dr. Schneider) grew up in Winona, Minnesota – a city in a tight-knit rural county where most people share the same primary care physician. I was diagnosed with type 1 diabetes at age 12 and the experience of managing a chronic condition with limited local resources was profound, a reality faced by too many in rural areas throughout the United States. 

In America’s rural communities, healthcare is in crisis. Rural Americans experience lower life expectancy and a 23% higher mortality rate than their urban counterparts simply due to lack of healthcare access, and 10% of rural communities lack providers entirely. More than 40% of rural hospitals are at risk of closure and since 2010, 182 rural hospitals have closed or stopped providing inpatient services, leaving millions of people without essential care. The current healthcare system—designed around urban centers, expensive infrastructure, and robust clinician supply—simply does not work for rural communities. Incremental solutions have failed. 

In its traditional form, American healthcare is costly and inefficient, relying on ever-growing labor demands to address every new challenge. However, as we see it this model is fundamentally misaligned with rural realities, where provider shortages are worsening as younger clinicians leave for urban centers and the population continues to age. A workforce-dependent system simply isn’t practical or scalable in these communities. To truly expand access to quality care, we need a new foundation. We believe the only way forward is to rearchitect healthcare specifically for rural America, with applied AI (the practical implementation of artificial intelligence technologies to drive transformation) at the core. 

Applied AI offers the opportunity to drive unprecedented advancements in industries encumbered by both skilled labor shortages and inefficiencies – none more so than rural healthcare. It is a broken system ripe for AI-driven transformation. AI can benefit providers and patients alike, eliminating much of the waste and allowing highly trained people to do less administrative work and more of what they went into the field to do. 

AI: The Great Equalizer for Rural Healthcare

At General Catalyst and Homeward, we believe that applied AI has reached its acceleration phase. In the latest McKinsey Global Survey on AI, 65% of respondents reported that their organizations are regularly using Generative AI. We believe in the power of applied AI to leapfrog other technologies in advancing rural health and care. Organizations that effectively leverage applied AI can bridge the healthcare divide. Our work has shown that when applied AI is deployed thoughtfully and responsibly, it can enhance human expertise and make care more accessible to those living in rural America. Here’s how how we see it:

• When each chart note and billing code eats into time spent with patients, AI helps providers by automating documentation and administrative tasks to ease burnout and focus on patient care, not paperwork.
• As rural clinicians face a shortage of specialists, AI-assisted diagnostics deliver faster, more accurate results and insights, often saving patients from hours-long drives to see a specialist for just 20 or 30 minutes. 
• In places where regular in-person checkups aren’t as feasible or frequent, AI-driven remote monitoring and audio-only telehealth can make it easy to catch warning signs early, helping people manage chronic conditions before they become crises.
• With AI, consumers can access real-time information to help them navigate their healthcare benefits with no surprises. This also frees up time for providers and administrative staff who spend hours on this instead of providing care.
• When every mile matters and resources are stretched thin, AI helps rural clinics deploy medications, supplies and staff where they’re needed most.
• As providers try to spot illnesses before they escalate, AI-powered predictive analytics and tools can detect early disease patterns, making it easier to intervene early and support patients before they show up in the emergency room.
• As language barriers hinder care, AI-driven translation and speech tools can make it easier for patients to understand instructions, ask questions, and feel seen.

At General Catalyst, we’re investing in companies like Homeward that recognize the urgency and opportunities of this moment. Homeward’s AI-native model is neither a pilot nor an experiment—it’s a working model proving that AI is the key to closing the rural healthcare gap. It’s evident in the metrics: improved efficiency in critical areas like streamlining member enrollment and enabling providers to offload 90% of their administrative workload. 

Yet, the power of AI must be harnessed responsibly. Ethical AI use demands transparency, equity, and safeguards against bias—ensuring technology enhances rural healthcare without deepening the very disparities we seek to eliminate. Homeward guards against bias by vetting the maturity, diversity and completeness of the training data that drives AI tools. Ensuring accuracy and quality in such data plays a key role in avoiding or mitigating bias in applied AI

AI is Not Optional – It is Essential 

It is well understood that the traditional healthcare system and approach have failed rural America. Given the healthcare system’s historic dependence on concentrated resources, large institutions, and an ever-expanding labor force, it's not surprising that this model falters in rural settings, where providers are scarce and distances are vast. AI offers a transformative opportunity. It is not just the new frontier in rural healthcare—it’s the inevitable frontier, bridging vast distances and scarce resources to expand access to care like never before. 

The Time for Action is Now

Healthcare leaders, policymakers, and investors must recognize that AI is foundational to addressing our nation’s rural healthcare crisis. Its role cannot be overstated. As an industry, we must prioritize the ethical and responsible adoption of AI, foster trust in its capabilities, and leverage its potential as the most viable path forward for healthcare in rural America.  

The status quo has failed. If we are truly committed to health equity – care that enables everyone to achieve their best health, no matter where they live – we must accelerate AI adoption in rural healthcare. There is no viable alternative.

Hemant Taneja is the CEO of General Catalyst, a company investing in transformative healthcare solutions.

Dr. Jennifer Schneider is the CEO & Co-Founder of Homeward, a technology-enabled healthcare provider pioneering AI-driven care for rural America.