Mayor Taveras Reaches Groundbreaking Agreement with Lifespan

Lifespan to contribute $2.4 million over three years; hospital system is first health care institution to make voluntary payment.

Mayor Angel Taveras and Lifespan announced today that the City of Providence and the health care provider have reached an agreement that will have Lifespan contribute $800,000 annually for the next three years in a voluntary agreement. Mayor Taveras heralded the agreement as a groundbreaking partnership that helps Providence immediately. Lifespan, Providence's largest employer, is the first hospital system to make a voluntary contribution to the city.

"The agreement we have reached with Lifespan is a groundbreaking partnership that helps Providence take another step forward to strengthen our fiscal ground. This agreement is the first between the city and any hospital, and I hope it inspires the other hospitals who rely on a strong Providence to be a part of the solution that positions our capital city for the future," said Mayor Taveras. "Lifespan has long been a responsible community partner and a leader in the effort to make Providence a healthier city - especially for our most vulnerable neighbors."

The agreement between Lifespan and Providence is completely voluntary. The hospital system will contribute $2.4 million in the next three years. Citing the three-year period for the agreement, both the Mayor and officials from Lifespan pointed to the uncertainty of the rapidly changing health care environment.

"We recognize that these continue to be challenging times for the city and we understand a strong Providence is central to the health of the entire state." said Scott Laurans, chairman of the Lifespan board of directors. "This is an important time to stand together and we are pleased to work with Mayor Taveras and other city officials to assist in the economic recovery of the capital city. As both the largest health care provider and employer in the state, we have worked diligently to be an economic engine for Rhode Island. Our action today further demonstrates our commitment to help ensure a strong and vital Providence."

Lifespan is a vital community partner in Providence. The network provides charity care for individuals at or below twice the federal poverty level and offers a sliding scale for individuals up to four times the poverty level. In all, Lifespan spent more than $100 million last year on uncompensated care, which has increased dramatically over the past several years.

In addition, the Lifespan system supports the Institute for the Study and Practice of Nonviolence's Street Workers program by donating the cost of the street workers' health care premiums - a $150,000 investment each year. The system has also committed $5 million over 10 years as an anchor tenant in the Prairie Avenue Revitalization Initiative. Also, over the past two years Lifespan has moved more than 300 employees to buildings off Allens Avenue, helping to revitalize an underserved area of Providence and contributing important tax dollars to the City of Providence.

Lifespan is an economic driver in Providence. The system is an anchor of the city's Knowledge District and is a leading source of outside investment for Rhode Island. In 2011, the system received $80 million in out-of-state research funding and employees over 800 researchers and investigators. In addition, Lifespan contributed $65 million to the academic mission and $15 million in additional research funding.