PROVIDENCE, R.I. (WPRI) — Financial woes have prompted Rhode Island Hospital to eliminate approximately 200 full-time and part-time positions, as well as a program for young children facing developmental challenges, the hospital announced Tuesday.
In a statement released to Eyewitness News, the hospital said the decision came as the result of costs rising faster than income. The hospital anticipates a “significant deficit” this fiscal year, which begins Thursday.
The jobs being cut include managers and staff-level jobs. The hospital said it expects most of the impacted employees will be able to secure other positions at one of Lifespan’s hospitals.
Rhode Island Hospital said it has not been filling vacant positions in recent months to limit the number of employees affected by the cuts.
The reduction also includes a program at Hasbro Children’s Hospital that provides services for children between birth and three years of age who have, or who are at risk for, developmental disabilities. The hospital said the program works with 300 families, and staff will work with the state to transition them to alternative programs.
“It was an extremely difficult decision, one made only after thoughtful discussions internally and an evaluation of the scope and breadth of services already provided by agencies across Rhode Island,” Rhode Island Hospital president Margaret M. Van Bree, MHA, DrPH, said in the statement.
The announcement comes the same day Lifespan reached an agreement on a new three-year contract with the union representing 2,300 Rhode Island Hospital employees.
Earlier this month, Lifespan announced Rhode Island Hospital will pay $7.75 million for the former Victory Polishing and Plating Co. headquarters, a site that’s been repeatedly mentioned as an alternative location for a new PawSox stadium. Richard Gudoian Jr., whose JAG Investment Realty LLC owns the site, “made a significant gift that enabled Rhode Island Hospital to purchase the property,” according to Lifespan.