With a health care system already in crisis, the proposed FY26 budget, will make a bad situation worse for Rhode Islanders. The proposed budget includes substantial cuts and tax increases targeting hospitals, threatening access to essential health services and the sustainability of our hospitals across the state.

The Impact

These cuts will have real consequences for Rhode Islanders.

Over half of Rhode Islanders already report difficulty accessing care, including facing long wait times for appointments, with many residents unable to see the specialists they need. This budget proposal will only add more barriers and delays in care across the state.

The state's underinvestment in health care also exacerbates the ongoing health care worker shortage. With hospitals unable to offer competitive pay due to low Medicaid and private insurer reimbursement rates, many workers are leaving for neighboring states. This only adds to the state's inability to attract and retain health care professionals and further strains the quality and availability of care for Rhode Islanders.

The Issue

Hospitals are already facing significant challenges due to low reimbursement rates and rising costs. 

Now, the proposed budget adds approximately $25 million in direct cuts to hospitals.

These damaging reductions include:

• Slashing the Medicaid rate increase by a third
• Eliminating vital inpatient and outpatient Medicaid Upper Payment Limit funding (UPL)
• Raising the hospital tax by nearly $16 million

A Call for Investment

Rhode Island needs to address the root cause of the health care crisis and prioritize investments in our health care system by increasing Medicaid reimbursements rates for physicians and hospitals, ensuring private insurer payments are competitive with those in Massachusetts and Connecticut and securing the resources hospitals need to continue providing high-quality care to patients.

Read more about the Solutions

Delaying action will only harm Rhode Islanders.