AN ACT RELATING TO MAKING REVISED APPROPRIATIONS IN SUPPORT OF FY 2026 RELATING TO ROGER WILLIAMS MEDICAL CENTER AND OUR LADY OF FATIMA HOSPITAL

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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO MAKING REVISED APPROPRIATIONS IN SUPPORT OF FY 2026
RELATING TO ROGER WILLIAMS MEDICAL CENTER AND OUR LADY OF FATIMA
HOSPITAL

Introduced By:
Representatives Abney, Slater, O'Brien, J. Brien, Shekarchi, Corvese,

Date Introduced:
January 29, 2026

Referred To:
House Finance
(Governor/Attorney General)
It is enacted by the General Assembly as follows:
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ARTICLE 1: RELATING TO AUTHORIZING THE STATE OF RHODE ISLAND TO
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PROVIDE FINANCING SUPPORT TO ASSIST THE SALE OF ROGER WILLIAMS
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MEDICAL CENTER AND OUR LADY OF FATIMA HOSPITAL TO CHARTERCARE
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HEALTH OF RHODE ISLAND, INC.

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ARTICLE 1
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RELATING TO AUTHORIZING THE STATE OF RHODE ISLAND TO PROVIDE
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FINANCING SUPPORT TO ASSIST THE SALE OF ROGER WILLIAMS MEDICAL
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CENTER AND OUR LADY OF FATIMA HOSPITAL TO CHARTERCARE HEALTH
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OF RHODE ISLAND, INC.
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SECTION 1. CharterCARE Health of Rhode Island, Inc. Debt Service Reserve Fund.
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WHEREAS, The General Assembly has historically adopted laws and provided various
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levels of support for the benefit of hospitals and healthcare facilities in the state for the health,
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safety and welfare of the Rhode Island people; and
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WHEREAS, Certain community hospitals act as the sole source of immediate access to
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hospital care for residents of the areas they serve and are essential to the maintenance of public
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health and safety; and
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WHEREAS, The diversity of services provided by these essential community hospitals are
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necessary for the overall health and safety of the community, but the costs of such services result
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in financial distress for the hospitals that must serve large uninsured or governmentally insured
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populations;
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WHEREAS, Because of the important medical services provided by such hospitals,
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restoring and ensuring the continued financial viability of these essential community hospitals is
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necessary for the public health and safety; and
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WHEREAS, Roger Williams Medical Center located in Providence, Rhode Island and Our
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Lady of Fatima Hospital, located in North Providence, Rhode Island (the “Hospitals”) are distressed
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essential community hospitals, currently under the supervision of the United States Bankruptcy
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Court for the Northern District of Texas Dallas Division Case No 25-80002 (SGJ) and are currently
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in the process of being sold to CharterCARE Health of Rhode Island, Inc. pursuant to an order of
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the Bankruptcy Court and state approvals pursuant to the Hospital Conversions Act Rhode Island
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General Laws § 23-17.14-1 et seq. and the Licensing of Healthcare Facilities Act Rhode Island
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General Laws § 23-17-1 et seq.; and
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WHEREAS, In fiscal year 2024, Roger Williams Medical Center provided care for nearly
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31,500 emergency room patients, 55,000 inpatient cases and 84,000 outpatient visits,
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demonstrating that the financial viability of Roger Williams Medical Center is vital to the public
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health and safety of the community it serves; and
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WHEREAS, In fiscal year 2024, Our Lady of Fatima Hospital provided care for nearly
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25,500 emergency room patients, 4,857 inpatient cases and 124,000 outpatient visits,
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demonstrating that the financial viability of Our Lady of Fatima Hospital is vital to the public health

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and safety of the community it serves; and
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WHEREAS, Ensuring the financial viability of the Hospitals is expected to preserve two
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thousand seven hundred (2,700) jobs and benefit the State of Rhode Island; and
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WHEREAS, To preserve the viability of the Hospitals, it is necessary to provide financing
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support to assist the sale of the Hospitals to CharterCARE Health of Rhode Island, Inc.; and
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WHEREAS, CharterCARE Health of Rhode Island, Inc., itself or acting through its
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affiliate or a special purpose entity created for such purpose, as borrower, intends to finance the
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acquisition of the Hospitals and all or a portion of the related costs through the issuance of limited
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obligations of the Rhode Island Health and Educational Building Corporation (the “Corporation”)
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under its hospital revenue bond program; and
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WHEREAS, Due to market conditions and to enhance the creditworthiness of the
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borrower, it is critical to the sale of the bonds that the state provide no greater than eighteen million
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dollars ($18,000,000) to fund a debt service reserve fund as credit support for the bonds; and
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WHEREAS, The state from time to time may fund the debt service reserve fund from
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available monies as set forth in Section 3 herein.
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NOW THEREFORE, It is enacted and resolved by the General Assembly as follows:
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RESOLVED, That this General Assembly hereby approves the creation of a debt service
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reserve fund for the bonds in a principal amount funded by the state not to exceed $18,000,000 in
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accordance with Section 3 hereof; and be it further
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RESOLVED, That the state shall have no obligation to replenish the debt service reserve
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fund, however, nothing contained herein shall prohibit the state by act of the General Assembly
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from doing so in the event the debt service reserve fund is drawn upon; and be it further
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RESOLVED, That any funds remaining in the debt service reserve fund upon payment in
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full of the bonds shall revert to the supplemental state budget reserve account established pursuant
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to Rhode Island General Laws § 35-3-20.2; and be it further
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RESOLVED, That bonds issued by the Corporation will be special obligations of the
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Corporation payable from funds received by the Corporation under the bond documents and other
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revenues received by the Corporation, in any combination or priority as may be designated in the
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proceedings of the Corporation authorizing the issuance of such debt; and be it further
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RESOLVED, That the bonds will not constitute indebtedness of the state or any of its
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subdivisions or a debt for which the full faith and credit of the state or any of its subdivisions is
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pledged; and be it further
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RESOLVED, That the state’s authority to incur the obligations set forth herein is
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contingent upon the sale and issuance of the bonds to provide funds for the purchase of the

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Hospitals and all or a portion of the costs associated therewith. The authority hereunder shall
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become effective upon the sale of the bonds and shall remain in effect as long the bonds remain
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outstanding.
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RESOLVED, That this joint resolution shall take effect upon passage.
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SECTION 2. Section 35-3-20.2 of the General Laws in Chapter 35-3 entitled "State
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Budget" is hereby amended to read as follows:
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35-3-20.2. Supplemental state budget reserve account.
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(a) There is hereby created within the general fund a supplemental state budget reserve
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account, which shall be administered by the state controller and which shall be used solely for the
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purpose of providing such sums as may be appropriated to fund any unanticipated general revenue
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deficit caused by a general revenue shortfall.
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(b) At any time after the third quarter of a fiscal year that it is indicated that total resources
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which are defined to be the aggregate of estimated general revenue, general revenue receivables,
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and available free surplus in the general fund will be less than the estimates upon which current
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appropriations were based, the general assembly may make appropriations from the supplemental
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state budget reserve account for the difference between the estimated total resources and the
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original estimates upon which enacted appropriations were based, but only in the amount of the
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difference based upon the revenues projected at the latest state revenue estimating conference
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pursuant to chapter 16 of this title as reported by the chairperson of that conference.
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(c) Whenever a transfer has been made pursuant to subsection (b), that transfer shall be
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considered as estimated general revenues for the purposes of determining the amount to be
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transferred to the Rhode Island capital plan fund for the purposes of § 35-3-20.1(b).
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(d) The supplemental state budget reserve account shall consist of: (1) Such sums as the
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state may from time to time directly transfer to the account as authorized in law; and (2) Any
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amounts transferred pursuant to § 35-6-1(e).
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(e) Notwithstanding the provisions of this section or any other law to the contrary, for the
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fiscal year ending June 30, 2026, the state controller shall transfer the sum of eighteen million
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dollars ($18,000,000) from the supplemental state budget reserve account to general revenue.
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SECTION 3. Section 1 of Article 1 of Chapter 278 of the Public Laws of 2025 is hereby
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amended as follows:
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Increase general revenue by $18,000,000 by adding a new line item within the general
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program of the department of administration by inserting the following text after the line “Library
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Construction Aid 2,115,628”:
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Hospital Financing Support Debt Service Reserve

$18,000,000

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Provided that, in order to provide credit enhancement to the proposed Hospital Financing
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Revenue Bonds (CharterCARE Health of Rhode Island, Inc. Issue) to be issued by the Rhode Island
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Health and Educational Building Corporation, $18,000,000 be allocated to the Rhode Island Health
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and Educational Building Corporation to be used to fund a debt service reserve fund for the bonds.
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Increase the department of administration grand total as follows:
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Grand Total - Administration
430,628,941

448,628,941
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Increase statewide totals general revenues as follows:
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Statewide Totals
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General Revenues
5,809,363,121

5,827,363,121
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Increase statewide grand total as follows:
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Statewide Grand Total
14,336,378,593

14,354,378,593
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SECTION 4. Except as otherwise provided herein, this act shall take effect upon the sale
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of the proposed Hospital Financing Revenue Bonds (CharterCARE Health of Rhode Island, Inc.
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Issue) to be issued by the Rhode Island Health and Educational Building Corporation, and further
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provided that if the bond issue does not close by May 8, 2026 this act shall not take effect.
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