Reed, Kennedy say Clinton budget helps RI
WASHINGTON – U.S. Senator Jack Reed and U.S. Representative Patrick Kennedy were hailing President Clinton’s budget proposal as a victory for Rhode Island. They noted that within the budget proposal is $3 million for the Providence Plan empowerment zone initiative; $10 million for the continued construction of the 22-mile freight rail line between Davisville and Central Falls; $600,001 to continue redevelopment of various Blackstone River Valley National Heritage Corridor projects; and substantial increases in defense spending, which the senator and representative said could result in millions of dollars of new work at Electric Boat’s Quonset Point facility; and about $39 million for various ongoing projects at Raytheon in Portsmouth.
Lifespan deficit sparks round of layoffs
PROVIDENCE — The Lifespan hospital network announced it is planning a new round of layoffs in an attempt to cope with worse than expected finances. Lifespan, Rhode Island’s largest hospital network, will announce the layoffs within the next 30 to 45 days. The exact number of job cuts is not yet known, but the likely number “is not insignificant,” said George Vecchione, Lifespan’s president. The job cuts are coming as Lifespan moves forward with its proposed merger with Care New England, a deal that would create a network that controls nearly two-thirds of the hospital market in Rhode Island. The merger and the layoffs are part of Lifespan’s plan to deal with worsening finances. It had to spend $6.4 million of its endowment to balance the books, posting an operating deficit last year of $50.2 million. The merger could save $90 million in five years, according to a confidential report prepared by accountants examining operations of Lifespan and Care New England. Last August, Lifespan eliminated 60 managerial positions to save $6.1 million in the first year. Lifespan, a nonprofit network, employs about 10,000 people in Rhode Island and 4,700 at a Boston hospital. Care New England has 5,245 employees in Rhode Island.
GTECH inks deal with the Arizona Lottery
WEST GREENWICH – GTECH recently announced it was awarded a new five-year contract to provide online lottery products and services to the Arizona Lottery. The contract award has two, one-year extension options and followed a competitive procurement. Upon completion of successful negotiations, GTECH will replace the Arizona Lottery’s existing equipment with new central system hardware, Prosys online gaming software and approximately 2,500 Isys terminals. CH has operated the Arizona Lottery under an emergency agreement since May 1996, when the Lottery terminated its agreement with another supplier.
Recycler reopens after raid by federal agents
JOHNSTON — Metals Recycling LLC was given permission to reopen after state and federal agents closed the plant during a raid. The company reopened after the FBI and state police seized records, files, and other evidence as part of a six-month criminal investigation looking into possible violations of solid- and hazardous-waste laws. The state Department of Environmental Management is leading the inquiry into the company. DEM spokesman Bob Ballou declined to explain the details of the investigation or why federal agents were involved. Metals Recycling lawyer Gregory Benik said the company has “procedures in place to ensure compliance with all environmental laws.”
RI Blue Cross attracting suitors
PROVIDENCE — Anthem Insurance Cos. and Blue Cross & Blue Shield of Florida are among several out-of-state companies seeking a controlling interest in Blue Cross & Blue Shield of Rhode Island, the state’s largest health insurer. Wasserstein, Perella & Co., a New York investment bank the Rhode Island insurer hired as an advisor, has received letters from a number of suitors seeking to merge with or buy the company, Ronald Battista, president and chief executive of Rhode Island Blue Cross, told
The Wall Street Journal. Rhode Island Blue Cross & Blue Shield is not yet committed to selling, but must find a way to shore up its finances, Battista said. It had a loss of $22 million last year, its third straight year in the red, and is raising premiums an average of 17 percent for large employers this year.
Warwick mall cinema closes
WARWICK — The three-screen General Cinema movie theater at Warwick Mall has closed after almost 28 years of operation. Brain Callahan, a spokesman for Chestnut Hill, Mass.-based General Cinema, said the company decided to close the theater because its lease was about to expire. Callahan said General Cinema, which operates 1,100 screens in the country, has been replacing several of its smaller theaters. Aram Garabedian, one of the managing co-partners of Warwick Mall, said he hopes to make an announcement soon about bringing new movie theaters to the mall, possibly at Caldor, which is going out of business.
Dreamport wins bingo contract
WEST GREENWICH – Dreamport, Inc., a wholly owned subsidiary of GTECH Corp. and Jenosys Technologies, Inc. has entered into a distribution and services agreement under which Dreamport will act as the exclusive director of Jenosys electronic bingo products to government agencies in the Provinces of Canada. Currently, electronic bingo is only authorized in the Provinces of British Columbia and Manitoba.
