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PROVIDENCE, R.I. - The Hospital Association of Rhode Island voiced concerns today in response to Governor McKee’s proposed FY26 state budget, which includes over $25 million in cuts to hospital funding. These cuts come as the state’s health care system already faces an accelerating crisis that threatens access to care for Rhode Islanders and the sustainability of health care facilities statewide.
“The Governor’s budget proposal will only make a bad health care situation worse for Rhode Islanders,” said Howard Dulude, Interim President of the Hospital Association of Rhode Island. “Hospitals are already facing significant challenges due to low reimbursement rates and these cuts will further strain hospitals, forcing them to continue to make difficult decisions to stay afloat, including laying off staff and cutting services.”
A recent poll conducted by SocialSphere revealed that more than half of Rhode Islanders faced difficulty accessing health care in the last year, with one-third struggling to schedule appointments with specialists and many resorting to emergency rooms instead. HARI warns that the proposed cuts could worsen these challenges, leaving residents without timely or adequate care.
“These cuts will have real consequences for Rhode Islanders, who are already facing long wait times for appointments, with many residents unable to see the specialists they need. This budget proposal will only add more barriers and delays in care across the state,” Dulude said.
Rhode Island also faces a significant shortage of health care workers, with many leaving for higher-paying opportunities in neighboring Massachusetts and Connecticut. According to the SocialSphere poll, 78% of Rhode Islanders support increasing reimbursement rates to match neighboring states, with particularly strong backing for Medicaid payment increases. The persistently low reimbursement rates have made it difficult for hospitals and health systems to offer competitive pay, leading to the state’s inability to attract and retain health care professionals.
“Rhode Island needs to address the root cause of the health care crisis–low reimbursement rates–by increasing Medicaid reimbursements for physicians and hospitals and ensuring private insurer payments are competitive with Massachusetts and Connecticut.”
"Delaying action will only harm Rhode Islanders," said Dulude. "HARI and its members are committed to working with the General Assembly and the Governor to secure more federal funding, strengthen our healthcare workforce, and meet the needs of all Rhode Islanders."
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