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North Providence council adopts letter urging protections for town revenues in proposed hospital sale
Summary
The council approved a letter to the Rhode Island Health and Educational Building Corporation urging that any hospital sale preserve existing tax or payment levels to avoid large revenue losses for the town.
The North Providence Town Council voted to send a letter to the Rhode Island Health and Educational Building Corporation and state leaders expressing serious concerns about the proposed transfer of CharterCare hospital system ownership to a nonprofit entity controlled by the Centurion Foundation.
Council members said the proposed conversion to nonprofit status could automatically terminate the town’s existing tax‑stabilization agreements and other local payments tied to the current ownership, producing an immediate revenue shortfall. The letter, read into the record by Councilman LaPorteo, stated the town faces a projected revenue loss of $1,884,000 for fiscal year 2025 (tax year 2024) and a potential loss exceeding $3,500,000 for fiscal year 2026 (tax year 2025) if the acquiring entity is not obligated to continue prior payment arrangements.
The council’s letter requests that any financing or sale agreement include: (1) maintenance of the payment levels currently provided under existing agreements; and (2) authority for the acquiring party to negotiate a local payment‑in‑lieu‑of‑taxes (PILOT) or other arrangement with the town. The letter also signaled willingness to work with state and hospital stakeholders to find a fair remedy to protect town finances while supporting continued health‑care access.
A motion to accept the letter for the record was made by Councilman LaPorteo and seconded by Councilman Bacala; the motion carried.
