PROVIDENCE – Care New England Health System says it lost $35.4 million in operations in the first six months of its fiscal year, which began Oct. 1, a significant shift from the $4.6 million operating income it reported in the same period a year ago.
The disclosure came as CNE announced on May 26 that it was cutting more than 30 leadership positions and nonclinical jobs.
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Because it recently refinanced its debt and entered into a new loan agreement with the U.S. Department of Housing and Urban Development, the nonprofit Care New England – the second-largest hospital group in Rhode Island – said it is no longer required to publicly file quarterly financial reports.
Brown University Health – the largest healthcare system in the state – still makes its reports public and, on May 20, posted an $18.8 million loss in the second quarter, which ended March 31.
CNE provided its bottom-line result for the entire organization for the six months between Oct. 1 and March 31, and it broke down those results among the CNE facilities.
The health system said when it announced the job cuts that it had been “aggressively pursuing margin improvement initiatives” to help offset an estimated $20 million budget deficit in fiscal 2026. The financial problems have been “driven by inadequate Medicaid reimbursement rates, rising labor and supply costs, and the increasing need to provide uncompensated care,” CNE said.
The organization, which operates Kent County Memorial Hospital, Women & Infants Hospital and Butler Hospital, has more than 6,000 employees, according to Providence Business News’ 2026 Book of Lists.
The disclosed financial data indicated that CNE finished the first half of fiscal 2026 in the red by $35.4 million, even though it had anticipated in its operating budget an $11.1 million shortfall in that period.
More than a third of that loss ($13.4 million) originated from Care New England Medical Group, the physician practice arm of the health system, according to CNE. The group lost $11.7 million in the same period last year.
Meanwhile, Women & Infants lost $10.9 million after reporting income of $16.2 million a year ago. Kent lost $5.8 million ($600,000 loss a year ago), Butler lost $3.2 million ($5.8 million income a year ago), and CNE’s administrative functions lost $2.4 million ($3.5 million loss a year ago).
The brightest spot in CNE’s financial performance: Integra Community Care Network reported an income of $3.1 million in the first half of fiscal 2026, after a $5.1 million loss a year ago.
And the Providence Center, CNE’s community behavioral health organization, had an income of $500,000, compared with $4.6 million in the same six-month period a year ago.
