Providence, R.I.-based Care New England has laid off more than 30 leadership and nonclinical roles across the system due to restructuring amid ongoing financial pressures that are straining hospitals and healthcare providers across Rhode Island.
Care New England has more than 8,000 clinical and nonclinical employees, according to its website. The system will work with the affected employees to provide assistance and resources, according to a May 26 news release shared with Becker’s.
System president and CEO Michael Wagner, MD, said in the release that the decision comes as state hospitals are plagued with inadequate reimbursement rates, increasing labor and supply cost and the rise of uncompensated care.
Dr. Wagner said Care New England is dealing with an estimated $20 million budget shortfall in fiscal year 2026, but remains dedicated to providing care to the community it serves.
“Current financial conditions have made additional cost-saving measures unavoidable, but decisions like these that affect our workforce are especially difficult because they impact valued employees, colleagues, and the patients and communities we serve,” Dr. Wagner said in the release. “However, the financial realities facing healthcare providers in Rhode Island require immediate action to preserve essential services and maintain long-term stability for a system uniquely committed to caring for even the most vulnerable Rhode Islanders.”
Rhode Island’s Medicaid reimbursement is ranked among the lowest in the nation and below the cost of care, even with approximately 1 in 3 state residents relying on the program for coverage.
“Dr. Wagner noted that Rhode Island now has a critical opportunity to help stabilize healthcare through a proposed $70 million state Medicaid investment that could unlock an additional $126 million in matching federal funds — bringing nearly $200 million into Rhode Island to support hospitals, physicians, community health centers, healthcare workers and patient care services statewide,” the release said.
Care New England comprises Providence-based Butler Hospital, Warwick, R.I.-based Kent Hospital, Providence-based Women & Infants Hospital, the Care New England Medical Group, Warwick-based VNA Home Health and Hospice, The Providence Center and Integra, a certified accountable-care organization, the release said.
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