The hits keep coming for Providence Mayor Angel Taveras, whose administration has landed new agreements for payments in lieu of taxes from Care New England and CharterCARE. City Hall says the latest agreements mean the administration is approaching its $7.1 million target for new contributions by tax-exempts.
Care New England, which operates Butler Hospital and Women and Infants, agreed to pay the city $250,000 each year for four years. The city and the hospital system agreed to reassess the agreement at the end of the three-year period due to unpredictable reimbursement within the health care industry. Coupled with the announcement of an agreement with CharterCARE earlier today, the city has now secured $5.7 million of additional contributions from five of the seven largest tax exempts in Providence.
“I am deeply grateful that Care New England has agreed to be a part of the effort to strengthen Providence’s fiscal ground and position to the city for the future. Our hospitals are vital community pillars and essential partners in our work to make Providence a healthier city for all of our residents,” said Taveras.
Taveras on Wednesday announced a tentative agreement with city workers and retirees that could save more than $18 million a year.
The second PILOT agreement announced today is with CharterCARE:
The agreement is completely voluntary and will provide the city with an additional $300,000 over the next three years. The announcement comes on the heels of the Mayor’s work to reach a settlement that reforms Providence’s pension system and ends the Medicare lawsuit.
CharterCARE, which operates Roger Williams Medical Center and St. Joseph Health Services of Rhode Island, will pay the city $100,000 each year for three years. The city and the hospital system agreed to reassess the agreement at the end of the three-year period due to unpredictable reimbursement within the health care industry.