News Summary
Brown University Health has reported mixed financial results after acquiring St. Anne’s and Morton Hospitals. While the Rhode Island segment showed growth, the Massachusetts hospitals experienced significant losses. The health system aims to address operational inefficiencies while maintaining staff levels and pursuing future acquisitions. Financial metrics from Rhode Island remain strong, but the impact of the acquisition raises sustainability concerns.
Providence, Rhode Island – Brown University Health has reported mixed financial results following its acquisition of St. Anne’s Hospital in Fall River and Morton Hospital in Taunton for $175 million in 2024. While the Rhode Island portion of the health system recorded a profitable third quarter in fiscal 2025 with a profit of $28.4 million, a 68% increase over the previous year, the addition of the Massachusetts hospitals has led to substantial financial losses.
In the recent quarterly report, Brown University Health disclosed a combined operating loss of $3.8 million stemming from its Massachusetts segment, which recorded a staggering loss of $32.2 million in just one quarter. Over the past six months, the losses from these two hospitals have totaled $53.3 million. Despite the overall success in Rhode Island, the performance of the newly acquired facilities has raised concerns among executives about their long-term sustainability.
Peter Markell, CFO of Brown Health, acknowledged ongoing struggles to revitalize the Massachusetts hospitals, which were at risk of closure following Steward Health Care’s bankruptcy. However, the health system has decided against staff or service cuts, instead opting to improve operations through hiring new personnel and a rebranding campaign. The commitment to maintaining staff levels comes in light of prior considerations to close the Noreen Stoner Drexel Birthing Center at Newport Hospital, which was eventually saved from closure due to public opposition.
In a separate development impacting operational strategy, Brown Health recently announced the closure of its medical equipment division, Brown Home Health Medical, scheduled for September 5, 2025. Additionally, the system is evaluating adjustments to the inpatient adult psychiatry program at Rhode Island Hospital due to sustained financial losses.
Despite these challenges, Brown Health maintains that the Rhode Island operations are not subsidizing losses in Massachusetts. The company remains optimistic about the acquisition as a long-term strategy aimed at enhancing service delivery. In a bid for growth, Brown University Health has announced plans to acquire Brown Physician Inc., a practice consisting of 500 independent specialty physicians, as part of its initiative to expand healthcare services effectively.
Financially, Brown Health’s quarterly revenue surged to $1.1 billion, up from $873 million year-over-year, primarily driven by increased patient revenues and pharmacy income. However, operating costs have escalated at a faster rate, reaching $1.2 billion this quarter compared to $861.5 million for the same period last year. The health system reported a quarterly net income of $48.7 million, an increase largely attributed to investment income, while total net assets at the end of the quarter amounted to $2.2 billion, providing a buffer to sustain operations for approximately 103 days.
Despite the losses at the Massachusetts hospitals, the operational metrics from Rhode Island hospitals remain promising. A total of 14,370 discharges occurred across the state’s hospitals with an average length of stay of just over six days. In comparison, the two acquired Massachusetts hospitals reported 3,807 discharges but with a shorter average stay of 5.7 days.
Contributing to the changing landscape of healthcare, the state has recently approved an increase in Medicaid reimbursement rates, aligning with ongoing discussions on improving Rhode Island’s healthcare ecosystem. Furthermore, Miriam Hospital in Providence, part of Brown Health, has been recognized again by U.S. News & World Report as a Best Regional Hospital for 2025-2026, marking the 14th consecutive year of this accolade.
In summary, while Brown University Health’s Rhode Island operations are witnessing growth, the significant losses accrued from the recent acquisition of St. Anne’s and Morton Hospitals reveal ongoing financial challenges that the health system must address as it works toward a blueprint for sustainable growth and improvement.
Deeper Dive: News & Info About This Topic
HERE Resources
Rhode Island School Districts Prepare for New Academic Year
Brown University Secures $50 Million Deal with Trump Administration
Rhode Island Nursing Education Center Evacuated Due to Threat
Brown University Reaches $50 Million Agreement with Trump Administration
Brown University Faces $30 Million Shortfall Due to Funding Issues
CMS Announces Special Election Period for Medicare Advantage in RI
Launch of Rhode Island’s First Finance Lab by Webster Bank
Trinity Repertory Company Announces Renovation and Box Office Closure
Trump Administration to Release Over $6 Billion in Education Grants
Providence School Board Holds Community Listening Sessions
Additional Resources
- Rhode Island Current: Brown University Health’s Acquisition Impact
- Providence Journal: U.S. News Ranks Rhode Island Hospital
- NBC Boston: Healey Celebrates Hospital Takeover
- Boston Globe: Brown Health Hospitals Overview
- Bond Buyer: Brown Health Refinancing Deal
- Wikipedia: Healthcare in the United States
Author: STAFF HERE PROVIDENCE WRITER
PROVIDENCE STAFF WRITER The PROVIDENCE STAFF WRITER represents the experienced team at HEREProvidence.com, your go-to source for actionable local news and information in Providence, Providence County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as WaterFire, Rhode Island International Film Festival, and Rhode Island Comic Con. Our coverage extends to key organizations like the Greater Providence Chamber of Commerce and Providence Warwick Convention & Visitors Bureau, plus leading businesses in finance and manufacturing that power the local economy such as Citizens Financial Group and Textron. As part of the broader HERE network, we provide comprehensive, credible insights into Rhode Island's dynamic landscape.
