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Roger Williams, Fatima hospital sale set to close in January after license application approved • Rhode Island Current

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Roger Williams, Fatima hospital sale set to close in January after license application approved • Rhode Island Current


The end is in sight for the long-awaited sale of Roger Williams Medical Center in Providence and Our Lady of Fatima Hospital in North Providence, with a closing date finally named: January 2025.

Otis Brown, a spokesperson for CharterCARE Health Partners, revealed the expected close in an email Monday afternoon, hours after the deal received the final license approval required from the Rhode Island Department of Health. 

The $80 million sale of two of the state’s urban safety net hospitals is a long time coming. Prospect Medical Holdings, the Los Angeles-based parent company of CharterCARE, first pitched the sale to nonprofit The Centurion Foundation in May 2023. But convincing the health department and state attorney general, who under the state’s Hospital Conversions Act have oversight on hospital conversions to nonprofit status, was no easy feat.

The initial application was rejected, the second deemed incomplete, before a third and final proposal was accepted in December 2023, and in June, conditionally approved. Even then, it was unclear whether CharterCARE was willing to meet the 85 conditions imposed on the sale.

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After months of negotiations, Rhode Island Attorney General Peter Neronha announced on Nov. 15 he would ease up on a few of the non-financial conditions imposed by his office, paving the way for the deal to advance. Meanwhile, the separate but parallel license change application received a positive recommendation from the appointed state health panel on Nov. 12.

On Monday, Dr. Jerry Larkin, state health director, confirmed the Health Service Advisory Council’s recommendation to approve the license change, removing the final state regulatory hurdle in the complex review process.

“Rhode Island needs a stable network of hospitals that supports the health and wellness of every community in the state,” Larkin said in a statement. “In light of the historical and ongoing financial and operational challenges at the hospitals, RIDOH’s Change in Effective Control decision and our Hospital Conversions Act decision came with conditions carefully developed to restore local control, help stabilize these two facilities, and help ensure that the new operators would be positioned to provide consistent, safe, high-quality care.”

The license approval comes with a few extra requirements beyond those tied to the nonprofit conversion. CharterCARE must submit regular, written reports to the health department, including data on finances and demographics of its patients, upon request, and details of any proposed changes to its board of directors. The new owners must also maintain national accreditation for the hospitals, alongside home health and hospice facilities within the network, and create a referral plan for charity care cases.

Brown indicated Monday that the buyer and seller were willing to meet these requirements.

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“This is welcome news for our 2,700 employees and for the thousands of patients we treat annually,” Brown said. “The transacting parties will now focus attention on executing the legal sale closing, scheduled for later in January 2025. We appreciate the time and effort of the Health Services Council, and the health department staff, in reviewing these extensive applications and for the Director’s prompt decision.”

Brown did not respond to specific questions about the status of financing for the deal. On top of the requisite $80 million sale price, the parties are also required to put $80 million in capital directly into the hospitals, while setting aside $66.8 million to be held in escrow, reserved for uses other than executive compensation or management fees.

According to its application, Prospect plans to finance much of the transaction through new debt, composed of a mix of taxable and tax-exempt bonds. Another $47 million in funds already held in state escrow — tied to a 2021 state agreement when Prospect bought out former majority stakeholder Leonard Green & Partners — will be put toward the new, $66.8 million escrow fund.

The financing has been a key source of concern for critics, including the United Nurses & Allied Professionals, which represents 1,200 members who work for CharterCARE. Under Prospect’s ownership, hospital operations and balance sheets have suffered substantially, with $124 million in cumulative operating losses from fiscal 2020 to 2024, alongside $24 million in unpaid vendor bills in 2023 alone.

Prospect finally paid $17 million of its outstanding vendor bills, per court order, in July 2024. 

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But Neronha believes that the financial set-asides required of Prospect and the newly created CharterCARE Health of Rhode Island, Inc. will prevent conditions from worsening, while reporting mandates will allow him to proactively file to put the hospitals into court-appointed receivership before any potential bankruptcy declarations arise.

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Medical school at URI won’t ensure primary care docs for RI | Opinion

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Medical school at URI won’t ensure primary care docs for RI | Opinion


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  • Rhode Island is currently experiencing a significant shortage of primary care physicians.
  • Opening a new medical school at URI is not seen as a timely or effective solution to the crisis.
  • Even with more medical school graduates, there is no guarantee they will choose primary care or stay in the state.
  • Better solutions include increasing pay, offering loan repayment, and reducing administrative burdens for doctors.

The doctor is not in, and there’s not one on the way either. Many Rhode Islanders are well aware that the state is facing a harrowing shortage of primary care physicians. As native Rhode Islanders and physicians invested in quality accessible primary care for our community, we are dedicated to working towards policies to support our state.

A medical school at the University of Rhode Island is not the solution to solve the primary care crisis. A medical school at URI would not provide a timely solution, would likely not achieve the target outcome of increasing the number of primary care physicians in the state, and would likely not address the underlying issue of getting doctors to stay. Instead, resources should be allocated now to supporting primary care in ways that would make sustainable change.

Lack of access to primary care is hurting patients now. A medical school at URI would not be a short- or long-term solution. In addition to the time needed to engineer an accredited medical school, it takes seven years to produce an inexperienced primary care physician. Once trained, there still must be an incentive to stay in Rhode Island. Patients do not have access to necessary care for acute and chronic conditions. The burden on our health care system, impacting ER wait times and hospital capacity, impacts everyone. We cannot afford to wait another decade for a solution.

More physicians does not equal more physicians in primary care or in Rhode Island. If the aim is to produce more physicians from URI’s medical school, this will certainly occur, but we should not delude ourselves into believing it will fix primary care. It’s not due to lack of opportunities. In 2019, the National Resident Matching Program offered a record number of primary care positions, yet the percentage filled by students graduating from MD-granting medical schools in the United States was a new low. Of 8,116 internal medical positions that were offered, just 41.5% were filled by U.S. students; most residency spots went to foreign-trained and U.S.-trained osteopathic physicians.

As medical schools across the country look to debt reduction as a means of encouraging students to enter primary care specialties, their goals have fallen far short. In 2018, The New York University School of Medicine offered full-tuition scholarships to every medical student, regardless of merit or need. In 2024, only 14% of NYU’s graduating seniors entered primary care, lower than the national average of 30%.

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There must be an incentive to stay in Rhode Island (or at least not a disadvantage). Our efforts must shift to recruiting and maintaining physicians in primary care. Inequitable reimbursement from commercial insurers between Rhode Island and neighboring states (leading to significantly lower salaries than if you lived here and traveled to Attleboro to care for patients), the lack of loan repayment(average medical student debt is $250,000, forcing the choice between meaning and money), and the ongoing administrative burdens are amongst the drivers away from primary care. Rhode Island needs to get on par with surrounding states to prevent physicians from going elsewhere.

The motivations behind opening a medical school are well intended in terms of wanting to increase the number of primary care providers by enabling local talent to train close to home. Training more people in Rhode Island will not keep them here; it will invest significant resources without addressing the root of the issue. Until there are comparable salaries between Rhode Island and our neighbors, until loan repayment is improved and the administrative burdens are reduced, primary care in the state will forever be fighting an uphill battle. Both providers and patients suffer the consequences.

Dr. Kelly McGarry is the director of the General Internal Medicine Residency at Rhode Island Hospital. Dr. Maria Iannotti is a first-year resident, a Rhode Islander intent on practicing primary care in Rhode Island.



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Truckers ordered to pay own legal bills from failed RI toll lawsuit

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Truckers ordered to pay own legal bills from failed RI toll lawsuit


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The trucking industry will have to pay its own legal bills for the unsuccessful eight-year-old lawsuit it brought to stop Rhode Island’s truck toll system, a federal judge ruled Friday, March 27.

The American Trucking Associations was seeking $21 million in attorneys fees and other costs from the state, but a decision from U.S. District Judge John McConnell Jr. says the truckers lost the case and will have to pick up the tab.

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The state had previously filed a counterclaim for reimbursement of $9 million in legal bills, but an earlier recommendation from U.S. Magistrate Judge Patricia Sullivan had already thrown cold water on that possibility.

McConnell ordered American Trucking Associations to pay Rhode Island $199,281, a tiny fraction of the amount the state spent defending the network of tolls on tractor trailers.

Settling the lawyer tab may finally bring an end to a court fight that bounced back and forth through the federal judiciary since the toll system launched and the truckers brought suit in 2018.

As it stands, the state’s truck toll network has been mothballed since 2022 when a since-overturned judge’s ruling temporarily ruled it unconstitutional.

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The Rhode Island Department of Transportation said it hopes to relaunch the tolls around March 2027.

The court costs fight hinged on which side could claim legal “prevailing party” status as the winner of the lawsuit.

The trucking industry claimed that it had won because the First Circuit Court of Appeals ruled an in-state trucker discount mechanism, known as caps, in the original truck toll system was unconstitutional.

But Rhode Island argued that it is the winner because the appeals court had ruled that the larger system and broad concept of truck tolls is constitutional and can relaunch with the discounts stripped out.

“The Court determines that ATA has vastly overstated the benefit, if any, that they have received from the ultimate resolution of their challenge to the RhodeWorks program,” McConnell wrote.

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The truckers “failed to obtain any practical benefit from the First Circuit’s severance of the [in-state toll] caps,” he went on. “Specifically, the evidence from this dispute confirmed that the lack of daily caps will result in ATA paying a higher amount in daily tolls and that it does not receive any tangible financial benefit from their elimination.”

In her December analysis of the legal fees question, Sullivan had concluded that the Trucking Associations’ outside counsel had overbilled and overstaffed the case.

But she had recommended that the industry be reimbursed $2.7 million for its bills, while McConnell’s ruling gives it nothing.



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Think you’re middle class in Rhode Island? Here’s the income range

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Think you’re middle class in Rhode Island? Here’s the income range


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Your household can earn more than $160,000 a year and still be considered part of the “middle class” in Rhode Island, according to a recent study by SmartAsset.

Rhode Island is the state with the 17th-highest income range for households to be considered middle class, based on SmartAsset’s analysis using 2024 income data from the U.S. Census Bureau. The Pew Research Center defines the middle class as households earning roughly two-thirds to twice the national median household income.

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According to a 2022 Gallup survey, about half of U.S. adults consider themselves middle class, with 38% identifying as “middle class” and 14% as “upper-middle class.” Higher-income Americans and college graduates were most likely to identify with the “middle class” or “upper-middle class,” while lower-income Americans and those without a college education generally identified as “working class” or “lower class.”

Here’s how much money your household would need to bring in annually to be considered middle class in Rhode Island.

How much money would you need to make to be considered middle class in RI?

In Rhode Island, households would need to earn between $55,669 and $167,008 annually to be considered middle class, according to SmartAsset. The Ocean State has the 17th-highest income range in the country for middle-class households.

The state’s median household income is $83,504.

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How do other New England states compare?

Rhode Island has the fourth-highest income range for middle-class households in New England. Here’s what households would have to earn in neighboring states:

  1. Massachusetts (#1 nationally) – $69,885 to $209,656 annually; median household income of $104,828
  2. New Hampshire (#6 nationally) – $66,521 to $199,564 annually; median household income of $99,782
  3. Connecticut (#10 nationally) – $64,033 to $192,098 annually; median household income of $96,049
  4. Rhode Island (#17 nationally) – $55,669 to $167,008 annually; median household income of $83,504
  5. Vermont (#19 nationally) – $55,153 to $165,460 annually; median household income of $82,730
  6. Maine (#30 nationally) – $50,961 to $152,884 annually; median household income of $76,442

Which state has the highest middle-class income range?

Massachusetts ranks as the state with the highest income range to be considered middle class, according to SmartAsset. Households there would need to earn between $69,900 and $209,656 annually. The state’s median household income is $104,828.

Which state has the lowest middle-class income range?

Mississippi ranks last for the income range needed to be considered middle class, according to SmartAsset. Households there would need to earn between $39,418 and $118,254 annually. The state’s median household income is $59,127.



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