PROVIDENCE – Care New England Health System has sold land next to Butler Hospital to a retirement community for $15.7 million.
Mary Marran, president and chief operating officer of Butler, which is run by Care New England, said the sale was part of the health system’s strategy to boost its finances.
“Achieving long-term financial sustainability demands constant transformation and strategic decision-making that avoids undermining an already fragile healthcare market,” Marran said.
Care New England posted a $1.2 million operating gain in the second quarter 2025. While these earnings show progress after years of losses, the health system still faces “significant challenges,” including investing in infrastructure, patient care and workforce, Marran said.
The property, located at 355 Blackstone Blvd. in Providence, was sold to Laurelmead Realty LLC, according to news reports. The R.I. Secretary of State’s database shows the entity was formed May 15 and is run by the same team who operates Laurelmead Cooperative Inc. – a retirement community with more than 150 apartments.
The sale took place May 30 and the property was sold for $15.7 million according to the Providence Tax Assessors Office. Pictures and videos posted on Facebook on June 10 by Laurelmead Cooperative show staff and residents at an event with one caption saying: “A momentous day at Laurelmead! We gathered to celebrate a dream realized, we now own our land! What a joyful occasion, surrounded by community, pride, and a shared vision for our future.”
Land records show Laurelmead is the owner of the property and it is worth an estimated $50.8 million.
Since it opened in 1994, Laurelmead has operated under a ground lease that’s set to expire in 2044 with no option to renew, according to a press release issued Tuesday. Laurelmead’s leadership team started negotiations with Butler and Care New England to purchase the fall of 2024.
Laurelmead and Care New England signed the closing documents May 30, shortly after attendees of a Laurelmead shareholder meeting unanimously approved the purchase.
The sale comes as more than 800 Butler employees are on strike. The employees who are members of the Service Employees International Union 1199 New England, or SEIU 1199NE, started an “open-ended” strike May 15 after contract negotiations stalled.
A bargaining session is scheduled for Tuesday, according to the union which plans to attend. Marran said the hospital is committed to negotiating with the union.
(UPDATE: Adds comment from Laurelmead's press release in 8th and 9th paragraphs.)
Katie Castellani is a PBN staff writer. You may contact her at Castellani@PBN.com
