Healthcare leaders strategizing to address the impending crisis in Rhode Island.
Healthcare leaders in Rhode Island, including Attorney General Peter Neronha, have raised alarms about a looming crisis that threatens the state’s healthcare system. They warn that without substantial financial investment, hospitals may close and the primary care workforce could dwindle. Proposed actions include increased Medicaid reimbursements and legal actions against pharmacy benefit managers to improve the situation. Community health centers face severe financial challenges, highlighting the urgency for investment in primary care to prevent further deterioration of the healthcare landscape.
Rhode Island health care leaders are sounding the alarm about an impending crisis that could threaten the stability of the state’s health care system. During a recent Rhode Map Live event, Attorney General Peter Neronha, Brown University Health President and CEO John Fernandez, and Maura Daly Iversen, Dean of the College of Health & Wellness at Johnson & Wales University, warned that without significant financial investment, the state may face hospital closures and a shortage of primary care providers.
Neronha pointed out that essential infrastructure improvements for Rhode Island Hospital and other medical institutions might be delayed if urgent financial measures are not taken. Iversen described the current state of health care in Rhode Island as a “very unsettling point in time,” while Fernandez emphasized the dire consequences of a lack of investment, which could lead to a “simple unmitigated disaster” in health care.
On the same day of the event, Neronha unveiled a series of actions aimed at addressing the current health care crisis. These actions include legislative proposals, a lawsuit against pharmacy benefit managers (PBMs), and a push for the establishment of a new health policy agency. Neronha remarked that Rhode Island’s health care scenario is a “spectacular failure,” indicating that the risk of losing primary care providers is alarmingly high.
One of the key proposals by Neronha is to increase Medicaid reimbursement rates to primary care providers to align with Medicare rates, which would require an investment of approximately $50 million. Currently, Rhode Island’s Medicaid reimbursement rate sitting at only 37% of the Medicare rate is significantly lower than that of neighboring states like Massachusetts and Connecticut. The proposed legislation would also enable the state to leverage federal matching funds in the Medicaid program to maximize financial support.
Neronha’s office has initiated a lawsuit in Providence County Superior Court against major pharmacy benefit managers like CVS Caremark, Express Scripts, and Optum. The lawsuit alleges that these organizations are profiting from rising drug prices, misleading consumers regarding cost savings while benefiting from higher drug costs. Additionally, Neronha’s office has proposed legislation to eliminate prior authorization requirements for procedures prescribed by primary care providers, with some exceptions.
Another pending bill seeks to grant the Attorney General the authority to place struggling hospitals into receivership. Rhode Island is also reviewing regulations regarding corporate transactions in medical practice groups, particularly those involving private equity firms. Further initiatives include plans to regulate the use of artificial intelligence in health care as part of a broader effort for reform.
The Attorney General’s Office has partnered with Brown University’s School of Public Health to examine options for health system reform in the state. A notable initiative involves proposing the formation of a new state-run health care agency dedicated to collecting data and making policy recommendations necessary for improving the health care landscape.
Community health centers in Rhode Island are currently facing significant financial challenges. The Providence Community Health Centers (PCHC), the largest community health center in the state and the only federally qualified health center in Providence, recently announced layoffs affecting over 70 staff members. The financial hardships are attributed to low Medicaid reimbursement rates and cuts in federal funding. The PCHC President and CEO has stated that making operational cuts is vital for survival, even with high patient demand.
PCHC has suffered a loss of $9 million due to restrictions on the 340B Drug Pricing Program and has not seen an increase in federal grants for the past decade. Discussions are underway to enhance the 340B program in Rhode Island, which could potentially recover an estimated $3 million annually for PCHC if successful. Without an investment in primary care, health leaders warn that emergency room visits are likely to escalate, imposing higher costs on both patients and the overall health care system.
News Summary Seekonk High School held a memorable commencement ceremony for the Class of 2025,…
News Summary Rhode Island introduces specialized mako shark-themed license plates for motorcyclists, with proceeds benefiting…
News Summary The Massachusetts Department of Transportation (MassDOT) will start utility repairs and inspections on…
News Summary The North Providence Police Department has confirmed the safe return of 17-year-old Autumn…
News Summary Dr. Otto Liebmann, an emergency physician in Rhode Island, held a 25-hour protest…
News Summary An elderly pedestrian suffered critical injuries after being struck by a vehicle in…