Bill > S2340

This bill authorizes the State of Rhode Island to provide financing support, specifically up to $18,000,000, to assist in the sale of Roger Williams Medical Center and Our Lady of Fatima Hospital to CharterCARE Health of Rhode Island, Inc. This financial backing is intended to create a debt service reserve fund, which acts as a financial cushion to enhance the creditworthiness of bonds issued by the Rhode Island Health and Educational Building Corporation (the "Corporation") to finance the acquisition. The bill clarifies that the state will not be obligated to replenish this reserve fund if it's drawn upon, and any remaining funds will revert to a state budget reserve account. The state's authority to provide this support is contingent on the successful sale and issuance of these bonds, and the act will become effective upon that sale, with a deadline of May 8, 2026, for the bond issue to close. This measure aims to ensure the continued financial viability of these essential community hospitals, which are currently in bankruptcy proceedings, thereby preserving jobs and maintaining vital healthcare services for Rhode Island residents.

Budget and Finance

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