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Prospect files for bankruptcy, leaving its hospitals in R.I. and Conn. in limbo – The Boston Globe

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Prospect files for bankruptcy, leaving its hospitals in R.I. and Conn. in limbo – The Boston Globe


“By engaging with stakeholders and implementing the Hospital Transactions, Prospect Holdings is prioritizing its core strength — focusing on operating community hospitals in California, providing vital care to underserved communities, and promoting patient and physician continuity — while ensuring these hospitals outside of California continue operations with proper financial support,” said Prospect in a press release around 11 p.m. on Saturday.

“Throughout the chapter 11 process, Prospect Holdings’ hospitals, medical centers, and physicians’ offices will remain open, and patient care and services will continue uninterrupted,” Prospect said in the press release.

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According to the filing, Prospect named Paul Rundell, the managing director of Alvarez & Marsal’s North American Commercial Restructuring practice, as chief restructuring officer, managing the company’s bankruptcy process. It said Prospect had more than 100,000 creditors. It listed the company’s liabilities as between $1 billion and $10 billion, and its assets in the same range.

Prospect has owned Roger Williams Medical Center and Our Lady of Fatima for more than a decade. Both hospitals care for some of the state’s most vulnerable patients, including many covered by public insurance. Investigators last summer found decaying conditions, such as bedbug infestations, cockroaches, mice, and other problems that put patients at “immediate” risk. In Connecticut, Prospect operates Rockville General Hospital, Manchester Memorial Hospital, and Waterbury Hospital.

Prospect, which also owns hospitals in Pennsylvania, has struggled financially for years.

Since late 2022, they have been trying to sell their two Rhode Island hospitals, and in June 2024 Rhode Island state regulators approved the terms of a deal to sell them to The Centurion Foundation, a Georgia-based nonprofit. Their approval came with dozens of conditions set by the health department and Rhode Island Attorney General Peter F. Neronha’s office, which virtually guarantees that Prospect would not make a profit on the deal if the transaction goes through.

Ben Mingle, the president of The Centurion Foundation, said he remains “fully committed” to acquire Prospect’s two Rhode Island-based hospitals. “This latest development in no way diminishes our interest or enthusiasm,” Mingle told the Globe in a statement.

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Neronha’s approval of the aquisition came after almost two years of deliberations between the parties, and working with regulators.

“We will work closely with all parties, including through the bankruptcy process, to advance the sale as quickly as possible,” said Mingle. “It is our hope that the court will recognize that after over eighteen months of formal review by the Rhode Island Department of Health and Rhode Island Attorney General, we have achieved full regulatory approval to secure these safety net hospitals, their 2,700 employees, and the critical role they play serving thousands of Rhode Islanders.

Regulators in several states, including in Rhode Island, have been putting pressure on Prospect over its troubled finances and deteriorating conditions at its facilities.

Neronha said he expects hearings for the Chapter 11 case to begin this week.

“If so, we’ll be there to protect Roger Williams and Fatima hospitals, workers, and patients,” he said. “Expect hospitals to continue as normal as Prospect attempts to effectuate sale to Centurion. We’ll continue to closely monitor.”

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Roger Williams Medical Center in Providence, R.I. is owned by Prospect Medical Holdings.John Tlumacki/Globe Staff

Prospect owes millions in back taxes, unpaid bills to vendors, and rent payments to landlord Medical Properties Trust, a national, publicly traded health care real estate investment trust. In its press release on Sunday, Prospect stated it would “pay vendors in full under normal terms for goods and services provided after the filing date.”

The fate of the thousands of patients and nearly 3,000 employees in Rhode Island will be determined by a process in which Prospect’s secured creditors will hold an interest in the system as collateral.

Prospect also has tried to sell its three hospitals in Connecticut to Yale New Haven Health. That transaction stalled after Yale New Haven Health filed litigation seeking to back out of its purchase agreement, citing decaying conditions at the hospitals. In a statement on Sunday, Connecticut Governor Ned Lamont said his administration will “continue to hold Prospect accountable.”

“Our number one priority remains maintaining safety and quality of care at Prospect’s three Connecticut hospitals. We currently have an independent monitor overseeing operations at Waterbury Hospital and will increase oversight at Manchester Hospital,” said Lamont. “We will continue to work to evaluate opportunities to transfer these institutions to a new operator.”

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Prospect, which was previously owned by a private equity firm, has long been controlled by wealthy financiers Samuel Lee, who now serves as the company’s board chairman, and David Topper, Prospect’s co-chief executive officer. In a statement on Sunday, Prospect’s other co-chief executive officer, Van Crockett, said filing for bankruptcy was “an important step forward” to best serve the company’s patients and employees, and that the company would be “better positioned to prioritize and execute its core strengths.”

“Divesting our operations outside of California will ensure that they receive necessary financial support so that the communities that rely on those facilities will maintain continued access to highly coordinated, personalized, and critical healthcare services long into the future,” said Crockett in the statement. “Through this process, Prospect Holdings will regain its financial footing as we rededicate ourselves to our original mission of serving the community.”

PHP Holdings, LLC and its related subsidiaries, including Prospect Health Plan, Inc., Prospect Medical Systems, LLC and its affiliated medical groups in California, Arizona, and Texas, Gateway Medical Center, and Foothill Regional Medical Center, are not parties to the chapter 11 proceedings.

Prospect executives are still finalizing necessary funding for the duration of the chapter 11 process, according to a company press release.

Neronha said Sunday morning that his office will have attorneys in Texas to represent the interests of Rhode Islanders.

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“This is personal to me, as I know it is to Rhode Island residents. I have a couple of physicians in my family who regularly relay to me the challenges of providing quality care in the current healthcare landscape,” said Neronha in a statement. “And I’m certainly well aware of the struggles of our failing system here in Rhode Island.

“This is tough stuff, but it can and should serve as a catalyst for Rhode Island leadership to meet the moment and attempt to provide real solutions, not just lip service,” added Neronha.

This article has been updated to include a statement from The Centurion Foundation.


Alexa Gagosz can be reached at alexa.gagosz@globe.com. Follow her @alexagagosz and on Instagram @AlexaGagosz.

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RI man tried smuggling 22 pounds of heroin into Canada via kayak. Now he’s heading to prison

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RI man tried smuggling 22 pounds of heroin into Canada via kayak. Now he’s heading to prison



Freddy Rodriguez was planning to use a kayak to rendezvous with a boat on Lake Champlain, according to court records

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  • Freddy Rodriguez, 40, of West Warwick, was sentenced to 57 months in prison for attempting to smuggle heroin into Canada, according to the U.S. Attorney’s Office for the District of Vermont.
  • Border Patrol agents apprehended Rodriguez near Lake Champlain as he prepared to kayak 10 kilograms of heroin to a waiting boat, the U.S. attorney’s office said.
  • Rodriguez was caught with the heroin, and his truck, which contained a hidden compartment, was seized, the U.S. attorney’s office said.

BURLINGTON, VT – A Rhode Island man who tried smuggling heroin into Canada via kayak on Lake Champlain was sentenced to 57 months in prison on Monday, July 21, according to the U.S. Attorney’s Office for the District of Vermont.

Freddy Rodriguez, 40, of West Warwick, previously pleaded guilty to conspiring to export heroin from the United States to Quebec, Canada, in September 2023, the U.S. attorney’s office said.

According to court records, Rodriguez had rented a house near Lake Champlain’s Missisquoi Bay in Highgate, Vermont, about 1½ miles from the border and was planning to deliver 10 kilograms of heroin to a power boat that had motored south from Canada when Border Patrol agents foiled the plan.

At about 12:05 a.m. Sept. 19, 2023, Border Patrol agents were hiding in the brush around a property on Duck Point Road “to observe possible illicit maritime traffic” when they saw a man later identified as Rodriguez “carrying what appeared to be at least one small bag,” Border Patrol Agent Brian Wilda said in an affidavit.

Rodriguez sat down on the beach and appeared to make and receive several phone calls, Wilda wrote.

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Meanwhile, at about 1:45 a.m., the Border Patrol agents received word from their communications dispatch center that a boat had been detected via remote surveillance equipment traveling south on Lake Champlain across the border, Wilda wrote.

The boat continued south until reaching the area where they were watching Rodriguez “and made a sharp turn to the east (toward shore),” although the agents couldn’t see any running lights on the vessel, Wilda wrote.

“As the vessel turned east, agents observed the male subject on the beach remove objects from one bag and place them into another bag,” Wilda wrote. “The male subject then began to drag a kayak from the beach to the water, facing the direction from which the vessel was approaching.”

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That’s when the Border Patrol agents ran from the woods and confronted Rodriquez.

“The subject attempted to abscond by running, but after approximately 40 feet he tripped, fell, and dropped the bag he was carrying,” Wilda wrote. “Agents detained the male subject and seized the bag, walking both back up to the property located above the shoreline.”

“Upon reaching property, the subject was met by additional agents arriving from other vantage points,” Wilda wrote. “I and other agents immediately recognized the detained subject as Freddy Rodriguez, an individual known to us from previous marijuana-smuggling events we had investigated in New Hampshire, in the far eastern portion of the Swanton Sector.”

Laboratory testing later showed that Rodriguez was carrying about 10 kilograms, or more than 22 pounds, of heroin, the U.S. attorney’s office said.

“Based on text messages recovered from Rodriguez’s phone, he appeared to have expected to receive a large quantity of cash and MDMA (ecstasy) in exchange for the controlled substances he was attempting to deliver,” the U.S. attorney’s office said.

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Agents also searched and seized Rodriguez’s Ford F150 truck, which was later found to have “a sophisticated locking trap – a void used for secretly transporting large quantities of drugs or currency – under the truck’s rear seats, the U.S. attorney’s office said.

Because of poor weather, the agents weren’t able to stop the boat.

Chief U.S. District Judge Christina Reiss also sentenced Rodriguez to three years of supervised release after his prison term.



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A way forward as new federal law slashes aid to Rhode Islanders – The Boston Globe

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A way forward as new federal law slashes aid to Rhode Islanders – The Boston Globe


Congress has passed disastrous legislation that extends the worst Trump-era tax policies: tax breaks for the wealthy, paid for by increasing the national deficit and gutting critical resources for millions of people, such as health care and food assistance. This new law also targets immigrants, including those who are lawfully present, refugees, asylees, and survivors of domestic violence and human trafficking.

The core of this Big Horrendous Bill is a series of devastating cuts: nearly $1 trillion from Medicaid, over $300 billion from education, $186 billion from the Supplemental Nutrition Assistance Program (SNAP), and more. More than 300,000 Rhode Island residents rely on Medicaid. According to the Center on Budget and Policy Priorities (CBPP), 67,000 Rhode Islanders who gained coverage under the Affordable Care Act expansion are at risk of losing it. Congress also allowed enhanced premium tax credits to expire, which means that approximately 40,000 low- and middle-income Rhode Islanders who get coverage through HealthSource RI will lose subsidies and see their premiums increase by an average of 85 percent.

Food insecurity will also worsen. More than 144,000 Rhode Islanders rely on SNAP and about 22,000 of them may lose some of their benefits. Congress has also shifted more of the burden of funding Medicaid and SNAP to states. For the first time, our state will be expected to shoulder 15 percent of SNAP benefits, at a cost of $51.8 million per year, plus an additional $15.8 million annually in administrative costs previously covered by federal dollars.

However, all is not lost. There is a Rhode Forward, if we are willing to act boldly.

Information is power: We must urgently understand what is in this law and how its provisions will impact health care, food security, education, and our state budget. We need clear, timely analysis and a coordinated statewide response to prepare for the timeline of these cuts.

Build a Rhode Island solution together: We need collective, strategic action that includes community leaders, policy experts, philanthropists, state agencies, and lawmakers. We must protect essential services while building an economy that sustains us all.

Advance tax justice: The new federal law exposes the injustice in our tax system. While essential services are being cut, tax breaks for the wealthy that began in 2017 have been extended and will continue immediately in 2026. According to the Institute on Taxation and Economic Policy, Rhode Island’s top 1 percent will receive $354 million in total tax cuts, an average of $58,840 per filer. That is far more than they would have paid under the proposed Rhode Island 3 percent surtax on high earners.

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Rhode Island’s tax policy must counter this by finally creating a fair tax structure. Most Rhode Islanders agree that the wealthy must do their part and pay their fair share. As we approach the 2026 elections, it is important to note that in a recent Pell Center poll, 70 percent of Rhode Island voters supported higher taxes on top earners. More than 1,000 residents and 90 organizations signed the Revenue for Rhode Islanders petition calling for a tax on the top 1 percent of R.I. earners, which was delivered to the General Assembly in June before the recess of the legislative session. Wealthy Rhode Islanders need to stand together with the rest of us and do more to protect our state.

Call a special fall legislative session: Thanks to the foresight of the Senate and House leadership, the 2025 legislative session remains in recess, which allows for the opportunity of a special fall session. We urge leadership to reconvene to fully review and proactively plan against the harms of the reconciliation law and pass the Top 1 percent bill, which would raise $190 million annually, with $95 million available in FY 2026.

We propose allocating this revenue to:

  • Add funds to the Supplemental Rainy Day Fund, moving us closer to 10% or more of General Revenue, like most New England states.
  • Fully fund RIPTA, strengthening our economy and reducing barriers to employment.
  • Provide a cost-of-living increase for Rhode Island Works, the state’s cash assistance and workforce development program for the poorest Rhode Islanders.
  • Fund enhanced premium tax credits or alternatively, use contributions from all commercial insurance, including large employer plans.

While some of these cuts won’t go into effect immediately, we cannot afford to wait until benefits are lost or our state budget is facing worse deficits. Lawmakers must act now. We need to be ahead of the crisis. We must treat this moment with the urgency it deserves and prepare today for what is coming our way.

Weayonnoh Nelson-Davies, Esq., is the executive director of the Economic Progress Institute.





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TGIF: Ian Donnis’ Rhode Island politics roundup for July 18, 2025  – TPR: The Public’s Radio

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TGIF: Ian Donnis’ Rhode Island politics roundup for July 18, 2025  – TPR: The Public’s Radio


Welcome back to my Friday column. You can follow me through the week on Bluesky, threads and X. Here we go. 

*** Want to get my column in your inbox every Friday? Just sign up right here. ***

1. STORY OF THE WEEK: Seventeen years ago, during the Great Recession, URI economist Leonard Lardaro espoused a view that Rhode Island had passed the point where it could solve its own problems. In the years since, the state has made some progress, treaded water in other ways and convulsed through extended mega-failures (38 Studios and the Washington Bridge, for example) that erode trust in government. That helps explain why voters are cranky in the run-up to the statewide election year of 2026, posing a heightened test for candidates as they try to win enough votes. A recent poll by the Pell Center at Salve Regina University underscored the sour feelings. It found that 94% of Rhode Island Democrats believe the country is facing a constitutional crisis, and approval ratings for Rhode Island elected officials were less than robust. On the other hand, 83% of Republicans felt they personally benefited from President Trump’s policies, underscoring “deep divisions between the Democratic and Republican party – not only on top issues but on major questions around the health of our democracy,” according to the Pell Center’s Katie Sonder. Poll respondents were also highly skeptical about the cost and estimated timeline for completing the new westbound Washington Bridge, even though both have been revised over time. Curiously, the economy was not a driving issue in the Pell Center poll. But economic anxiety remains a widespread concern for young Americans nationwide, ensuring that it will remain part of our politics for years to come. 

2. THE RACE FOR GOVERNOR: Will RI Senate Minority Leader Jessica de la Cruz emerge as the Republican hope for governor next year? The North Smithfield Republican told WPRI’s Kim Kalunian this week that “all options are on the table” regarding a possible run for higher office next week. That’s a switch from when de la Cruz told me flatly in February, “I’m not going to run for governor.” So what changed? A string of polls have indicated a poor standing for Democratic Gov. Dan McKee (though he got a bump via Morning Consult this week). And Ashley Kalus, the GOP challenger to McKee in 2022, hasn’t shown much indication of gearing up for a rematch.

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3. LEGACY CONTRIBUTIONS: The declining health and death of Dominick Ruggerio at age 76 on April 21 didn’t stop the flow of campaign contributions from his campaign account to supporters of the Rhode Island Senate leadership and other favored lawmakers. State campaign finance records indicate the following contributions from Ruggerio’s campaign fund: $500 to Sen. Melissa Murray (D-Woonosocket) on April 1; $300 each on April 1 to Sen. Todd Patalano (D-Cranston), Sen. Peter Appollonio Jr. (D-Warwick), and state Rep. Jackie Baginski (D-Cranston); $300 to Sen. Andrew Dimitri (D-Johnston) on April 7; $500 to Sen. Victoria Gu (D-Charlestown) on April 7; $300 to state Rep. Anthony DeSimone (D-Providence) on April 8; $500 to Sen. Louis DiPalma (D-Middletown) on May 8; $500 to Sen. Robert Britto (D-East Providence) on May 8; $500 to Ruggerio’s successor as Senate president, Val Lawson of East Providence, on June 4; and $2,000 to Stefano Famiglietti, who won the Democratic primary earlier this month to succeed Ruggerio in Senate District 4. State law allows the treasurer of a campaign account to make these kinds of contributions, although John Marion of Common Cause said Rhode Island — unlike some jurisdictions — does not require the money to be spent down after an officeholder’s death. As of June 30, there was more than $130,000 still in Ruggerio’s campaign account and about $19,000 in the RI Senate Leadership PAC. Nancy Lavin reported back in May that Ruggerio’s campaign treasurer, brother-in-law Jim Aceto, said a family decision had not been made at that time about how to use the campaign funds.

4. ACROSS THE ROTUNDA: House Speaker Joe Shekarchi made the media rounds after the recess of the legislative session, guesting on the various interview shows, including Political Roundtable. His latest chat was with my colleague Jim Hummel, who offers this dispatch: “Speaker Shekarchi and I had a — shall I say — lively discussion about this year’s General Assembly session, with the dust still settling after the final gavel came down three weeks ago. We did the interview in the room where House Finance meets, and I pressed him about the long-term ramifications for a budget that has grown significantly under his watch and whether the continued growth is sustainable. I also asked if he regretted not conducting more early legislative oversight on the Washington Bridge (beyond one joint, and largely uneventful hearing in early 2024) before a lawsuit by the state against bridge contractors put the clamp on any public officials talking about why the bridge failed. And the speaker reiterated why he opposes the creation of an office of inspector general — and offered some new details about why the bill has not gotten out of committee. Our entire interview — which also includes RIPTA and the primary care crisis — can be seen here.”

5. DEMOCRATS: With Democrats reeling after voters sent Donald Trump back to the White House, U.S. Rep. Jake Auchincloss of Massachusetts is among those trying to chart a new course. As Kelly Garrity reports in Politico’s Massachusetts Playbook, Auchincloss is leading Majority Democrats, “a coalition of federal, state and local Democrats, most of whom have won in competitive purple or red seats. The group, which The New York Times first reported on late last week, includes members of Congress, as well as mayors, governors and state legislators. The roughly 30 members tend to lean toward the center — members include Democratic Reps. Angie Craig (Minn), Pat Ryan (N.Y.), Joe Neguse (Colo.), Jared Golden (Maine) and Maggie Goodlander (N.H.).” Auchincloss told Garrity that Democrats need a box of fresh crayons, adding, “I use that term ‘box of fresh crayons’ deliberately — like a lot of different stripes of political belief, but a shared belief that we need much more vigorous debate about ideas, and we need much more appetite to challenge the status quo because the status quo is putting this party on a trajectory to a permanent minority in this country.”

6. HEALTHCARE: My colleague Lynn Arditi reports on how a staffing shortage and rise in workplace violence have fueled the strike at Butler Hospital: “In hospitals, a combative or violent patient, known as a “code gray,” can be so spontaneous and unpredictable that it’s impossible to prevent. But the risk of violence increases when hospitals are understaffed or employees are insufficiently trained or experienced to manage patients they are assigned to care for, according to interviews with employees and industry researchers, and an examination of inspection reports by The Public’s Radio. Now, roughly 800 unionized workers at Butler Hospital are in the eleventh week of a strike. And their demands for better pay and benefits, union leaders and labor researchers said, are part of a larger effort to ensure workers have the staffing and resources needed to safely care for their patients.”

7. RI POLI MELANGE: Attorney General Peter Neronha continues to join with other Democrats in bringing lawsuits against the Trump administration, in cases involving education funding and health coverage …. Neil Steinberg is winding down his time as the voluntary chair of the RI Life Science Hub …. U.S. Rep. Seth Magaziner is hosting a congressional staff delegation today [Friday] to the North Kingstown factory of Edesia Nutrition, following almost 30 floor speeches calling for the White House to restore nutrition aid …. U.S. Rep. Gabe Amo decried cuts to FEMA and the National Weather Service amid tragic flooding in Texas …. Former Northern RI Chamber head Liz Catucci is the new executive director of the Partnership for Rhode Island …. Newport Councilor Xay Khamsyvoravong is among those expressing concern about the possible closing by Brown University Health of the birthing center at Newport Hospital …. Former rep, congressional candidate, talk-meister and man-about-town John Loughlin has a vanity website about his beloved 1990 Chevy C-1500 Cheyenne and how he restored it. There’s even a snap of a certain well-coiffed reporter bantering with Loughlin during his 2010 run against David Cicilline.

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8. PUBLIC MEDIA: Congress has voted to roll back $9 billion in public media funding and foreign aid. Here’s part of the response from Pam Johnston, president/CEO of The Public’s Radio and Rhode Island PBS. “This is a pivotal moment for democracy and public media. Public media is not a luxury – it provides trusted journalism, life-saving emergency information, and free, high-quality educational programming for every family, no matter their zip code or income. With today’s vote, Rhode Island will lose nearly $1.1 million in federal support starting this fall – funding that directly fuels our local journalism, arts & culture coverage, and the educational programming our community values and depends on. To be clear, this is a direct attack on local content and storytelling at a time that Rhode Islanders need it most. I am grateful to our local Congressional delegation for their unwavering support of public media and voting against this measure. I join my colleagues across the country in denouncing this decision. Despite this vote, our commitment to our audience and our community does not waver. We will keep listening, reporting, educating, and serving. If you believe in the power of local journalism and the importance of free access to trusted, local information, please support us. We need you now more than ever. Become a member, make a donation, watch and listen to our programs, and support our work so that, together, we can navigate this challenging chapter and continue telling the local stories that matter most here at home.”

9. FALL RIVER: A grim scene played out in Fall River as a fire at an assisted-living facility claimed 9 lives this week, the worst blaze in the state in many years. The view from media critic Dan Kennedy: “Despite lacking the resources of the Boston-based media, Fall River’s information providers are giving a voice to officials and residents rather than relying on outsiders to tell their story.”

10. THE BENCH: With former Rhode Island Senate majority leader Michael McCaffrey facing an elevated level of opposition regarding his nomination to be a district court judge, all eyes are on Gov. McKee.

11. THE LG FIELD: What’s your number? How many candidates do you expect to run for lieutenant governor next year, challenging Democratic incumbent Sabina Matos? The field is slowly assembling. Cynthia Coyne was first out of the gate. Sen. Louis DiPalma (D-Middletown) is contemplating it, as he told me this week. And as Ray Baccari Jr. reports, Providence Councilor Sue AnderBois is another potential prospect. As we’ve noted before, one or more of the mayors of Pawtucket, Central Falls, and East Providence could be part of the mix, along with other aspirants. 

12. RISING PROSPECTS: Congrats to you if you had a 10-game winning streak for the Sox on your bingo card ahead of the All-Star break. The Sox have finally delivered on some of their pre-season promise. But is it just a tease or a preview of a squad that will still be playing baseball in October?

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13. THE OUTDOORS: How an innocent mistake left a Cranston lake strangled by invasive plants.

14. KICKER: For a sense of the dramatic flux of contemporary life, just consider how CBS is killing The Late Show despite its status as a ratings leader, not to mention the singular talent that is Stephen Colbert. Elsewhere, NYT columnist David Brooks is not without hope, although he argues that contemporary novels are failing to meet the moment: “What qualities mark nearly every great cultural moment? Confidence and audacity. Look at Renaissance art or Russian or Victorian novels. I would say there has been a general loss in confidence and audacity across Western culture over the past 50 years.” 



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