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PROVIDENCE, RI- Rhode Island’s hospital leaders are calling on legislators to act in response to Governor McKee’s proposed budget for FY 2026, which includes over $25 million in direct cuts to hospitals across the state. In a letter to General Assembly members on Tuesday, leaders urged action to address the crisis, which stems from low Medicaid reimbursement rates and inadequate payments by private insurers.
The damaging cuts proposed in the Governor’s budget threaten access to essential health services and the sustainability of hospitals across the state. The proposals include cutting the Medicaid rate increases by a third and eliminating vital inpatient and outpatient Medicaid Upper Payment Limit funding (UPL).
“We have an alarming crisis in care in Rhode Island, and the proposed cuts will have devastating impacts on residents’ ability to access care and health care workers,” said Howard Dulude, interim president of the Hospital Association of Rhode Island (HARI). “More than half of Rhode Islanders have already faced at least one instance where they were unable to see a doctor in the past year, and without action, it will only become more difficult for our families and neighbors to get the timely care they need.”
The state’s health care facilities continue to face significant financial strain and are having to make tough decisions, including reducing staff and cutting services. At the same time, the state is also confronted with a shortage of health care workers as many professionals seek higher-paying opportunities in neighboring states.
“At this point, investing in the health of Rhode Islanders is not optional — it is essential. This session, it is imperative that the General Assembly not only restore the proposed cuts but also address the health care crisis with an investment in our health care system,” said Dulude. “HARI and its members are committed to continue working with the General Assembly and all stakeholders to support our health care system and the thousands of health care workers and patients who rely on it.”
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