PAWTUCKET — Care New England’s Board of Directors voted unanimously Thursday night to withdraw Memorial Hospital of Rhode Island from the obligated group for its bond debt, and to assume sponsorship of MHRI’s pension plans, pledging continued funding for its $63.6 million pension debt as the company awaits the R.I. Department of Health’s decision on its application to close the hospital.
According to Jim Beardsworth, CNE spokesman, the pension debt was $63.6 million as of Sept. 30, 2017. Last year on the same date, it was $76 million.
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Care New England exceeds all funding requirements for the plan, Beardsworth said, which is currently funded at 80.12 percent.
“Memorial’s debt and retirement plans were inherited by Care New England when we acquired Memorial Hospital in 2013,” said Dr. James E. Fanale, executive vice president, chief operating officer and chief clinical officer at CNE.
“With these votes, Care New England is affirming our commitment to repay this debt, and to continue to fund the pension plans as part of an orderly wind-down of Memorial Hospital. In this way, we are able to honor our commitments to employees and bondholders leaving them in a more stable position than when we acquired Memorial,” Fanale added.
Pawtucket’s conditions:
On Friday, Pawtucket Mayor Donald R. Grebien announced he has asked RIDOH to place 11 conditions on Care New England as a condition of its approval of its application to close the hospital:
- That primary care practice in internal medicine and family medicine be preserved at its present level or increased in size at the current campus
- That the medical residency program should be maintained at Pawtucket Memorial.
- That the acute rehabilitation unit be maintained.
- That an urgent care center and a radiologic imaging service be located in the existing emergency room which has been recently upgraded at the cost of millions of dollars.
- That the Cancer Center of Memorial Hospital should be maintained on campus.
- That a consultant advise the Department of Health which other health services are necessary to protect the health and wellbeing of Pawtucket’s and Central Falls’ most vulnerable populations.
- The Department of Health conduct an independent examination regarding whether the surrounding hospitals have the ability to absorb the patients that have historically utilized Pawtucket Memorial.
- That Care New England immediately issue an RFP for the re-purposing of the hospital campus, with the City having veto power, so that the campus is not left empty, and this critically important economic driver of business to this financially distressed city left abandoned and useless.
- That Care New England account for its use of the endowment and to reimburse the endowment to the level that it was at when they acquired the hospital in 2013.
- That any acquirer of Care New England commit to restoring a full service acute care community hospital to Pawtucket.
- That the Department of Health and the City of Pawtucket shall have standing and authority to seek injunctive relief in court in order to specifically enforce any of the conditions imposed.
Care New England’s application to close Memorial via a reverse certificate of need, is under review at the Department of Health. CNE intends to transfer primary care services currently provided under Memorial Hospital’s license to Kent Hospital’s license.
RIDOH also has the authority to impose the final conditions during its review, Grebien said.
“I am pleased to see an outline of Care New England’s commitments to keep services in Pawtucket for our residents” said Mayor Grebien. “I am also glad to see them working with the nurses and health professionals to retain their jobs. However, we still have work to do to ensure that these commitments become reality and the quality care remains here.”
Rob Borkowski is a PBN staff writer. Email him at Borkowski@PBN.com.
