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Taveras announces new PILOT agreements with Care New England and CharterCARE

From the Mayor’s Office on Care New England (scroll down for announcement about CharterCARE):

Mayor Taveras Announces PILOT Agreement with Care New England

Taveras administration secures $5.7 million from five of seven largest tax exempts Additional contribution triple annual PILOT payments from 2003 MOU

PROVIDENCE, RI – Mayor Angel Taveras announced today that the city has reached a payment-in-lieu-of-taxes agreement with Care New England. The agreement is completely voluntary and will provide the city with an additional $1 million over the next four years. The announcement comes on the heels of the Mayor’s work to reach a settlement that reforms the city’s pension system and ends the Medicare lawsuit.

Care New England, which operates Butler Hospital and Women and Infants, agreed to pay the city $250,000 each year for four years. The city and the hospital system agreed to reassess the agreement at the end of the three-year period due to unpredictable reimbursement within the health care industry. Coupled with the announcement of an agreement with CharterCARE earlier today, the city has now secured $5.7 million of additional contributions from five of the seven largest tax exempts in Providence.

“I am deeply grateful that Care New England has agreed to be a part of the effort to strengthen Providence’s fiscal ground and position to the city for the future. Our hospitals are vital community pillars and essential partners in our work to make Providence a healthier city for all of our residents,” said Mayor Angel Taveras.

“We believe in Providence,” said Care New England President and CEO Dennis D. Keefe. “We have long demonstrated our support for the city and its residents through our hospitals’ proud tradition of service, the uncompensated care we have provided to the uninsured and the underinsured, and through the workforce opportunities we offer. But the time is right to step up in a new way and to come to the aid of the city in a time of need. We believe a stronger Providence creates a stronger foundation for our community and helps advance our local knowledge district which holds so much promise for the state’s future.”

Care New England employs more than 640 people in Providence and provides $35 million of uncompensated care and community service each year. The system helps attract more than $25 million in private and federal funds for cutting edge research in brain science and women’s and newborn health. In addition to the PILOT agreement, Care New England contributes $1.5 million in property taxes generated through development of taxable entities located on the Butler Hospital campus and an additional $400,000 in taxes through building space leased by Women & Infants.

In his Fiscal Year 2012 budget address, Mayor Taveras called on the city’s seven largest tax-exempt institutions to make additional payments to the city to support vital services the city provides. To date, the Taveras administration has reached agreements with five of the tax-exempts, including CharterCARE, Care New England, Lifespan, Brown University and Johnson & Wales University.

And, a new PILOT Agreement with CharterCARE:

Mayor Taveras Announces PILOT Agreement with CharterCARE

Hospital system agrees to make $100,000 annual payment for three years Taveras Administration closing in on $7.1 million total contributions from tax-exempts

PROVIDENCE, RI – Mayor Angel Taveras announced today that the city has reached payment-in-lieu-of-taxes agreement with CharterCARE Health Partners. The agreement is completely voluntary and will provide the city with an additional $300,000 over the next three years. The announcement comes on the heels of the Mayor’s work to reach a settlement that reforms Providence’s pension system and ends the Medicare lawsuit.

CharterCARE, which operates Roger Williams Medical Center and St. Joseph Health Services of Rhode Island, will pay the city $100,000 each year for three years. The city and the hospital system agreed to reassess the agreement at the end of the three-year period due to unpredictable reimbursement within the health care industry.

“I am pleased to announce that we have taken another step to strengthen Providence’s fiscal ground and that CharterCARE has agreed to help position our city for the future,” said Mayor Angel Taveras. “Through our partnerships, we have pulled Providence back from the brink and will be in a stronger position to compete with cities and states across the region and across the country.”

CharterCARE employs more than 2,800 people across the Providence region and provides nearly $20 million of uncompensated care each year. In 2011, CharterCARE provided outpatient care for nearly 410,000 patients.

“CharterCARE is pleased to have reached an agreement with the City of Providence,” said CharterCARE president Kenneth Belcher. “This agreement balances our ability to provide needed cash assistance to the city without jeopardizing the many uncompensated services we currently provide to the less fortunate in Providence.”

In his Fiscal Year 2012 budget address, Mayor Taveras called on the city’s seven largest tax-exempt institutions to make additional payments to the city to support vital services the city provides. To date, the Taveras administration has reached agreements with five of the tax-exempts, including CharterCARE, Care New England, Lifespan, Brown University and Johnson & Wales University.

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4 Responses to Taveras announces new PILOT agreements with Care New England and CharterCARE

  1. EM June 1, 2012 at 2:01 pm #

    Anyone know which two of the seven are left?

  2. Jef Nickerson June 1, 2012 at 2:08 pm #

    Haven’t heard anything from the Catholic Church yet, but I don’ think that is among the seven the Mayor is referring to.

  3. Towne Street June 1, 2012 at 2:11 pm #

    Providence College and RISD are the two remaining institutions.

  4. Runaway Jim June 4, 2012 at 9:39 am #

    I have a feeling Providence College is not going to agree to any increases in payments to the city.

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