PROVIDENCE – Hospitals in Rhode Island supported more than 60,000 jobs and generated about $11.7 billion in economic output in 2024, according to a report from the Hospital Association of Rhode Island.
The association commissioned the report, the “2024 Economic Impact Analysis,” to assess the effects of the state’s hospitals on the local economy.
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“Hospitals are critical to Rhode Island’s health care system, and their contributions extend far beyond providing vital care for patients,” said Howard Dulude, interim president of the Hospital Association of Rhode Island. “Hospitals are fundamental drivers of the state’s economy, supporting tens of thousands of jobs and generating hundreds of millions of dollars in tax revenue.”
According to the report, hospitals directly and indirectly supported the following in Rhode Island in 2024:
- 63,054 jobs statewide, with 35,717 people directly employed by hospitals and an additional 27,337 indirect and induced jobs.
- $11.7 billion in total economic activity, including $98.9 million in construction investments.
- $4.9 billion in income, supporting 41,965 households.
- $779.3 million in state and local tax revenue.
Also, from 2025 to 2030, hospitals are expected to invest $469.5 million in construction in Rhode Island. This is expected to support 973 jobs annually, $151.4 million in annual economic output, and $6.1 million in state and local tax revenues.
“Despite their essential role in Rhode Island’s economy and health care system, hospitals are facing mounting financial pressures driven by chronic underfunding, workforce shortages and rising costs,” Dulude said. “The current Medicaid reimbursement rates do not cover the cost of care, and commercial rates in Rhode Island remain below those in neighboring states. These funding shortfalls directly impact hospitals’ ability to sustain jobs, invest in critical infrastructure and continue delivering high-quality care to our communities.”
Dulude said the cuts proposed in the fiscal year 2026 state budget would add to this strain. Shortly after Gov. Daniel J. McKee proposed the budget, HARI raised concerns because it includes about $28 million in direct cuts to hospitals, along with an additional tax increase of almost $17 million.
Katie Castellani is a PBN staff writer. You may contact her at Castellani@PBN.com.
