RI S2340

Authorizes Rhode Island to provide up to $18 million to fund a debt service reserve fund supporting the sale of Roger Williams Medical Center and Our Lady of Fatima Hospital to CharterCARE Health of Rhode Island, Inc.

Both hospitals are currently in bankruptcy under U.S. Bankruptcy Court supervision (Northern District of Texas) and serve as essential community hospitals providing emergency, inpatient, and outpatient care to approximately 57,000 emergency room patients combined annually.

Financing will be structured through limited obligation revenue bonds issued by the Rhode Island Health and Educational Building Corporation; bonds do not constitute state debt and the state has no obligation to replenish the reserve fund if drawn upon.

Transfers $18 million from the supplemental state budget reserve account to general revenue for FY 2026, increasing the statewide grand total budget to $14,354,378,593.

Act expires and becomes void if the bond issue does not close by May 8, 2026; remaining reserve funds after bond repayment revert to the supplemental state budget reserve account.