Providence, R.I.-based Brown University Health has eliminated or consolidated 10 senior leadership positions and is offering a voluntary separation program to approximately 200 employees amid ongoing financial pressures, and a goal to strengthen long-term sustainability in fiscal 2027.
Brown Health’s executive restructuring was completed in September 2026. The separation program was made eligible for supervisors, managers and directors ages 60 or older with at least five years of service as of Sept. 30, according to an Oct. 1 news release.
The health system – formerly known as Lifespan – expects charity care, insurer denials and bad debt to rise from $275 million in fiscal 2025 to $346 million in fiscal 2026, a $71 million year over year increase. The figures point to the growth of uninsured and underinsured patients after recent federal policy changes.
Brown Health is also ending employee health plan coverage for GLP-1 medications prescribed for weight loss due to rising costs. Employees using the medications for diabetes treatment will continue to receive coverage.
Brown Health projects a $64 million fiscal 2027 gap against its 2.75% operating margin goal, despite the cuts. The system saw $3.63 billion in operating revenue and $3.64 billion in operating expenses for the nine months ended June 30, 2026, resulting in operating loss of approximately $13 million.
“Healthcare organizations across the country continue to face significant financial pressures, and Brown Health is no exception,” John Fernandez, president and CEO of Brown University Health, said in the release. “Rising pharmaceutical, labor and supply costs, combined with increasing levels of uncompensated care, insurer denials and bad debt, are creating unprecedented challenges. The actions we’re taking will help strengthen our financial foundation while protecting access to care and supporting future growth.”
Some of the fiscal 2027 investments Brown Health has planned include up to $100 million over five years to upgrade and replace equipment; $210 million for major projects underway at The Miriam Hospital in Providence, Rhode Island Hospital in Providence and other system locations; a merit increase for employees in January; and $15 million in fiscal 2027 and $100 million over five years for digital, data and automation initiatives.
