Lifespan, Rhode Island’s largest hospital chain, is resuming payments in lieu of taxes to the city of Providence, Lifespan announced today.
Lifespan President and CEO Dr. Timothy Babineau said that better finances have led the hospital to resume the payments to Providence with a $400,000 contribution. According to the hospital system, Lifespan’s finances have rebounded from a $33 million operating loss to a break-even status on its balance sheet, enabling the system to resume the payments.
Lifespan contributed $800,000 each year in 2012, 2013 and 2014 and $400,000 in 2015, but suspended the payment in 2016 due to budget red ink.
``I thank Lifespan for their continued support of the city of Providence and look forward to working with them as we move Providence forward together,’’ said Mayor Jorge Elorza.
The non-profit hospital Lifespan system runs two large Providence teaching hospitals, Rhode Island Hospital and Miriam Hospital. But the hospital chain is not nearly the largest contributors of non-profits to the city's coffers. Brown University, with an annual contribution of about $5.2 million makes the largest payment of all the tax-exempt institutions in the city. Johnson & Wales University pays almost $1 million, while Providence College chips in about $600,000. The Rhode Island School of Design pays about $440,000 and the hospital chain Care New England contributes $250,000, acccording to figures supplied by the Elorza Administration.