PROVIDENCE — Last week, Lifespan Corp. made a $400,000 voluntary payment in lieu of taxes to Providence, the seventh year the nonprofit has made a voluntary payment since 2012 and the second payment since abstaining in 2016 in the midst of a financial turnaround.
Lifespan, which owns Hasbro Children’s Hospital, Rhode Island Hospital and The Miriam Hospital, all in Providence, as well as Bradley Hospital in East Providence, Gateway Healthcare located in Charlestown, Johnston and Pawtucket, and Newport Hospital in Newport, has contributed $3.6 million to the city during the last seven years.
Facing the Holidays with a Cancer Diagnosis
The holidays are often painted as a time of joy, tradition, and togetherness. But for…
Learn More
The hospital system has been making regular PILOT payments to the city since 2012, when it pledged to make annual $800,000 PILOT payments through 2014.
The company reduced its PILOT payment in 2015 to $400,000. Lifespan did not make a PILOT payment in 2016, when the hospital system posted a $500,000 operating loss, then continued with a $400,000 payment in 2017.
That year, Lifespan Corp.’s operational income grew more than $12 million to $14.5 million. At the same time the health care provider group saw an increase in net assets of $126.9 million, posting a 0.7 percent operating margin. The year reversed a $49.1 million decline in net assets during fiscal 2016.
“Lifespan is proud of its vital contributions to our communities – from world-class health care to our standing as the state’s largest employer,” said Dr. Timothy J. Babineau, president and CEO of Lifespan. “We take our commitment to the City of Providence and the community very seriously. Our community depends on us and we depend on their support. A critical part of our mission is to provide care to everyone who walks through our doors regardless of their ability to pay. We also invest millions in charity care and other community benefits. Lifespan is fortunate to have achieved a small operating surplus to make this PILOT payment possible.”
Providence Mayor Jorge O. Elorza said Lifespan’s collaborative efforts and investments in Providence are essential to the continued growth and success of Providence.
“We continue to look for ways to work collaboratively with our anchor institutions, including our health care partners. I thank Lifespan for their continued support of the City of Providence and look forward to working with them as we move our city forward together,” said Mayor Elorza.
On Monday, Mayor Jorge O. Elorza finalized a $748.7 million fiscal year 2019 city with no tax increase.
“The City prioritized a budget that held the line on taxes and while any revenue not received could lead to a change in overall budget position, PILOT contributions support flexibility,” said Victor Morente, spokesperson for Elorza’s office.
Providence also benefits from a state PILOT program that reimburses municipalities based on 27 percent of the tax that would have been assessed on tax-exempt property, according to the R.I. Department of Revenue.
The state program is currently funded at $46.1 million, said Paul Grimaldi, DOR public information officer. Providence receives $33.5 million of that, some of which is in consideration for Lifespan’s non-taxable Providence properties.
Lifespan’s three-year PILOT commitment from 2012-2014 to Providence:
- June 2012 – $800,000
- October 2013 – $800,000 (Arrived October 2013, booked to fiscal year 2013)
- July 2014 – $800,000 (Arrived July 2014, booked to fiscal year 2014)
Lifespan PILOT payments from 2015-2018 to Providence:
- June 2015 – $400,000 (Arrived July 2015, booked to fiscal year 2015)
- June 2017 – $400,000
- June 2018 – $400,000
Rob Borkowski is a PBN staff writer. Email him at Borkowski@PBN.com.
