Providence, RI — Care New England (CNE) today announced the elimination of more than 30 leadership and non-clinical positions across the system as part of a restructuring in response to ongoing financial pressures that continue to strain hospitals and healthcare providers throughout Rhode Island.
This difficult decision comes as hospitals across the state face unprecedented economic challenges driven by inadequate Medicaid reimbursement rates, rising labor and supply costs, and the increasing need to provide uncompensated care. CNE has been aggressively pursuing margin improvement initiatives to help offset an estimated $20 million in budget shortfalls in fiscal year 2026, while remaining committed to providing high-quality, accessible care to the communities it serves, according to Dr. Michael Wagner, President and CEO.
“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. “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 healthcare system is under growing pressure as Medicaid reimbursement rates remain among the lowest in the nation and significantly below the actual cost of care. Today, Medicaid provides coverage for approximately one in three Rhode Islanders, yet hospitals and providers continue to absorb substantial losses caring for these patients.
At the same time, proposed federal Medicaid changes threaten to increase the number of uninsured Rhode Islanders, further increasing uncompensated care costs and financial strain on healthcare systems statewide.
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.
“With Rhode Island facing a healthcare crisis, this investment represents an opportunity to protect patient access, preserve healthcare jobs, and strengthen hospitals and providers across the state,” Dr. Wagner said. “Without meaningful action, Rhode Island risks continued erosion of healthcare access, longer emergency room wait times, reduced services, and additional job losses throughout the healthcare sector. We urge state leaders to prioritize investments that strengthen healthcare and protect access to care for all Rhode Islanders.”
Care New England will continue to work closely with the employees affected by these changes, offering resources and assistance to them. The healthcare system remains focused on providing and maintaining the essential services that our patients and families depend upon to live healthy lives.
About Care New England
Care New England Health System is a trusted organization advancing the future of care through leading medical research, nationally recognized clinical services, and innovative programs. As one connected system, CNE attracts top, specially trained physicians and clinicians, fosters collaboration across disciplines, and leads meaningful conversations about health, wellness, and end-of-life care.
Founded in 1996, Care New England brings together a network of respected organizations working together to better serve patients and the community. The system includes Butler Hospital, Kent Hospital, Women & Infants Hospital, Care New England Medical Group, VNA Home Health and Hospice, The Providence Center, and Integra, a certified accountable care organization (ACO). Care New England includes 749 licensed beds and 102 infant bassinets. Care New England is proud of its strong commitment to education and research, and through Butler, Kent, and Women & Infants Hospitals, maintains a teaching and research affiliation with The Warren Alpert Medical School of Brown University. Kent is also a teaching affiliate of the University of New England College of Osteopathic Medicine.