PRESS RELEASE

Rhode Island’s Health Care Crisis:

Hospitals Call on State Leaders to Restore Harmful Cuts


  Urges General Assembly to restore cuts and invest in reimbursement rates that cover the actual cost of care 

PROVIDENCE, R.I.- The Hospital Association of Rhode Island (HARI) has released new radio and digital advertisements to raise awareness of the state’s health care crisis and urge Rhode Island leaders to restore the proposed cuts to hospitals in the FY26 state budget, which threaten access to care for thousands of Rhode Islanders. The thirty-second radio and targeted social media advertisements address the state’s growing health care crisis and the negative impacts of the proposed budget cuts on Rhode Islanders.

 

“We’re calling for state leaders to prioritize investments in our health care system now,” said Howard Dulude, interim president of the Hospital Association of Rhode Island. “All health care providers in Rhode Island already face significant financial challenges due to low Medicaid reimbursements rates for physicians and hospitals and regionally below-market rates from private insurers.”

 

The proposed FY26 budget adds approximately $25 million in direct cuts to hospitals. These damaging reductions include:

  • Slashing the Medicaid rate increase by a third
  • Eliminating vital inpatient and outpatient Medicaid Upper Payment Limit funding (UPL)
  • Raising the hospital tax by nearly $16 million

 

“The proposed budget would add more taxes to hospitals while simultaneously reducing millions in payments, resulting in further deterioration of the health and wellness of Rhode Islanders,” Dulude said. “We need a full restoration of Medicaid reimbursement rates and investments in hospitals, not more cuts. Rhode Island families simply cannot afford anything less.”

 

The Association released the advertisements as Rhode Island’s health care crisis continues to accelerate. A recent poll conducted by SocialSphere shows that over half of Rhode Islanders faced at least one barrier to accessing health care in the past year, with many struggling to find primary and specialty care providers and receive timely medical attention. Additionally, the state faces a significant shortage of health care workers, with professionals leaving the state for higher-paying opportunities in neighboring states.

 

Dulude added, “Ensuring the stability of our state’s health care system is more critical than ever. HARI and its members will continue to advocate for the stability of Rhode Island’s health care system and urge state leaders to secure the resources hospitals need to continue providing high-quality care to patients.”

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About the Hospital Association of Rhode Island:

Founded over a half a century ago, the Hospital Association of Rhode Island (HARI) is a statewide trade organization that assists member hospitals in effectively meeting the health care needs of Rhode Island through advocacy, representation, education and services. To learn more visit www.hari.org.

FOR IMMEDIATE RELEASE

February 13, 2025

MEDIA CONTACT

Jillian Scott

(401) 474-7128