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Rhode Island Senate unanimously approves reserve to back sale and stabilization of two hospitals
Summary
The Senate passed SB 2340 Sub A to create a reserve intended to support the sale and stabilization of Roger Williams Medical Center and Our Lady of Fatima Hospital, with sponsors citing jobs and continuity of care; the act passed on a 34-0 vote.
The Rhode Island Senate on Feb. 10 unanimously approved Senate Bill 2340 Sub A, a fiscal-year 2026 appropriation and financing authorization intended to support the sale and ongoing operation of Roger Williams Medical Center and Our Lady of Fatima Hospital and to assist a proposed transfer to Charter Care Health of Rhode Island Incorporated.
Chairman Anthony DePalma, reporting for the Finance Committee, said the bill would set aside $18,000,000 from a state reserve established in prior years. He described the money as a ‘‘second tranche’’ intended to backstop payments if the buyer—identified in the discussion as a Centurion-affiliated company for the two hospitals—cannot make scheduled payments. DePalma said Centurion would provide a first tranche of $9,000,000 and said the state contribution would be $8,000,000, adding “that’s where it ends” and that the state would commit no additional funds beyond that amount. DePalma emphasized the proposal’s goal of preserving thousands of outpatient and inpatient services and roughly 2,700 jobs tied to the facilities.
Senator Jonathan Acosta, who seconded the motion, urged colleagues to support the bill while calling for reforms to prevent similar crises in the future. Acosta framed the situation as the result of private-equity ownership practices: “Private equity came in ... they took out almost $1,000,000,000 in bonds using our hospitals and our patients in effect as collateral,” he said, arguing some proceeds went to shareholders and the companies then defaulted on loans, leaving the state to address continuity of care.
The Senate voted by recorded ballot after the motion was moved and seconded; the clerk reported 34 votes in the affirmative, 0 opposed, and the act passed. The Senate then immediately considered and passed House Bill 7408 Sub A, described on the floor as a duplicate of SB 2340 Sub A.
Reported details and numerical statements reflect the sponsors’ remarks during debate. There is an apparent arithmetic inconsistency in floor remarks: the bill text as read and the sponsor’s description referenced an $18,000,000 reserve, while the sponsor also described contributions of $9,000,000 from the buyer and $8,000,000 from the state; the transcript does not reconcile that arithmetic, and the record provided on the floor did not further clarify the divergence.
Next steps: the measures passed the Senate and will be transmitted to the House where identical or conforming language will be considered as part of the legislative process.
