Home Economy Government Health care community celebrates wins in proposed FY 2026 state budget

Health care community celebrates wins in proposed FY 2026 state budget

By

Katie Castellani

-

06/12/2025

statehouseb — RHODE ISLAND health care advocates and leaders are celebrating the funds for hospitals, medical practices and providers included in the proposed $14.3 billion fiscal 2025 state budget. / PBN PHOTO/ WILLIAM HAMILTON

PROVIDENCE – Rhode Island health care advocates and leaders are celebrating the allocations for hospitals, medical practices and providers included in the proposed $14.3 billion fiscal year 2026 state budget. Among the biggest wins for health care advocates was the inclusion of $45 million to raise Medicaid reimbursement rates for primary care doctors to match

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PROVIDENCE – Rhode Island health care advocates and leaders are celebrating the allocations for hospitals, medical practices and providers included in the proposed $14.3 billion fiscal year 2026 state budget. Among the biggest wins for health care advocates was the inclusion of $45 million to raise Medicaid reimbursement rates for primary care doctors to match Medicare – a proposal Attorney General Peter F. Neronha pitched. “For so long in Rhode Island, health care has been an afterthought, but following the House’s introduction of a newly revised budget, it is a cornerstone,” Neronha said in a statement Wednesday. Indeed, advocates have that the state’s lagging reimbursement rates are straining practices and turning providers to nearby states like Massachusetts, where they are almost 30% higher. “It has been several years since the state first acknowledged the primary care crisis," said Noah Benedict, CEO of Rhode Island Primary Care Physician Corporation. “This investment reflects a meaningful policy shift and lays critical groundwork for long-term reform.” The budget also includes a three-year pilot program that would eliminate prior authorization requirements for some primary care providers. This is a major win for providers, said Stacy Paterno, executive vice president of the Rhode Island Medical Society. Advocates say prior authorization requirements have added unnecessary administrative burdens to already overworked health care providers and delays in care. These delays sometimes cause patients to seek urgent treatment from emergency departments. Along with the Medicaid rate increases and prior authorization pilot program, Paterno applauded the budget’s support for Thundermist’s Family Medicine Residency Program, funds for a loan repayment program and health care centers as well as a moving up the state Health Insurance Commissioner’s primary care rate review to September 2026. “These are great first steps and could help entice providers to come to practice in Rhode Island,” Paterno said. “The steps we are taking this session will help address things acute in the environment right now.” Dr. Amy Nunn, CEO of the Rhode Island Public Health Institute, was glad to see any increases in health care funding as the state is facing a projected $250 million budget deficit and there is uncertainty surrounding cuts on a national level. However, she raised concerns about shortages of primary care providers. “I think [supporting the workforce] indispensable we have to explicitly enumerate in statute and in legislation and in our budget that dollars should be earmarked for outpatient care and not just inpatient hospital services,” Nunn said. Nunn did praise the $10.5 million earmark to increase reimbursements for federally qualified health centers. “In Rhode Island, we have fantastic insurance coverage and we have great safety net health care and great systems,” Nunn said. “We have to continue to support those systems.” While it's still reviewing the budget, the Hospital Association of Rhode Island also praised the support for federally qualified health centers and skilled nursing facilities. The budget includes $12 million to raise base payments – all of which would go to direct care workers – to nursing homes by 3%. While the budget didn’t include $90 million for hospitals HARI has said they need, it provided another $38 million. Still, HARI said praised the budget. “The budget advanced last night includes important steps forward in responding to the state’s health care crisis through targeted investments across the continuum of care,” HARI said in a statement. “While we are very encouraged to see investments in the health care system, Rhode Island’s health care crisis cannot be solved in a single fiscal year.” The association says it plans to continue working with state lawmakers and Gov. Daniel J. McKee to find long term solutions to boost patients access to care, help workers and support the financial sustainability of providers and hospitals. “Without clear commitments in these areas, hospitals remain at risk,” the association said. Neronha agreed there is still work to be done, but the budget’s focus on health care is a critical point in solving the state’s health care crisis. “These necessary commitments, combined with additional health care investments in this budget, will go a long way to stop the bleeding,” Neronha said. “While there is much more work ahead to be done, I believe today marks a turning point for health care in our state, and worth celebrating as such.” The tax-and-spending package was approved by the House Committee on Finance June 10. Now, it heads to the full House for a vote. Katie Castellani is a PBN staff writer. You may contact her at Castellani@PBN.com.