RI H7408

Rhode Island will provide up to $18,000,000 to fund a debt service reserve fund supporting the sale of Roger Williams Medical Center (Providence) and Our Lady of Fatima Hospital (North Providence) to CharterCARE Health of Rhode Island, Inc.

Both hospitals are currently under U.S. Bankruptcy Court supervision (Northern District of Texas) and the sale requires state approval under the Hospital Conversions Act and Licensing of Healthcare Facilities Act.

The $18 million will be transferred from the supplemental state budget reserve account to general revenue, then allocated to the Rhode Island Health and Educational Building Corporation as credit enhancement for hospital financing revenue bonds.

The financing aims to preserve approximately 2,700 jobs at the two hospitals, which combined served over 57,000 emergency room patients, nearly 60,000 inpatient cases, and 208,000 outpatient visits in fiscal year 2024.

The act becomes void if the bond issue does not close by May 8, 2026; the state has no obligation to replenish the reserve fund if drawn upon, and remaining funds revert to the supplemental state budget reserve account once bonds are fully paid.