Governor McKee Calls for Passage of $10M Budget Proposal to Support Hospitals Facing a Rise in Uninsured Patients
Published on Friday, April 03, 2026
Cost of uncompensated care expected to escalate with Trump Administration’s changes to Medicaid and Affordable Care Act affecting health coverage costs
PROVIDENCE, RI — At an event at Hasbro Children’s Hospital, Governor Dan McKee was joined by representatives of local hospitals and the Hospital Association of Rhode Island to highlight his $10 million FY 27 budget proposal to support uncompensated hospital care.
Changes by the Trump Administration and Congressional Republicans to Medicaid and the Affordable Care Act have negatively impacted both access to and the affordability of health coverage. As a consequence, the number of insured Rhode Islanders is expected to decrease, while the number of uninsured Rhode Islanders seeking care in emergency rooms is expected to increase. The $10 million in Governor McKee’s proposal is designed to help support hospitals as they navigate a surge of uninsured patients, whom, by law, hospitals must treat.
“At a time when access to affordable health coverage is under attack, we must support our hospitals, which are often the first line of defense,” said Governor McKee. “My $10 million budget proposal will make a difference to operations at Brown University Health, Care New England, South County Health, Landmark Medical, Westerly Hospital, and CharterCare Health Partners, so that they can continue to provide essential health care to anyone who walks through their doors.”
Hospital Association of Rhode Island President Michael Sroczynski said, “When coverage disappears, medical needs do not. People delay care, conditions worsen, and patients ultimately arrive at hospitals with more complex and resource-intensive needs. That’s why Governor McKee's proposed $10 million investment to help offset uncompensated care is so important — it recognizes that when coverage gaps grow, hospitals remain the safety net. We thank the Governor for recognizing the pressures hospitals, healthcare workers, and patients are facing.”
“We anticipate uncompensated care will rise in the coming years due to the impacts of HR-1, which, between federal changes to Medicaid and HealthSource RI, may leave thousands of Rhode Islanders without health insurance coverage,” said Executive Office of Health and Human Services Secretary Richard Charest. “When coverage gaps like this happen, people still need care, and hospitals often become a landing spot for these patients. Governor McKee’s proposed $10 million investment will make a meaningful difference by helping hospitals stabilize essential services, by protecting access, and by continuing to invest in the staff and capacity that patients depend on.”
At the event, Brown University Health President and CEO John Fernandez and RI Hospital Trauma Surgeon Dr. Stephanie Lueckel discussed the value of this $10 million investment.
“Patients who walk through our doors get the health care they need, regardless of their insurance coverage, and that often means providing care at a financial loss to our hospitals,” said Brown University Health President and CEO John Fernandez. “The Governor’s Uncompensated Care Protection Act is a necessary first step in helping hospitals across the state address this unsustainable situation. Ensuring this support is critical not only for hospital sustainability, but for maintaining high-quality, timely patient care for the communities we serve.”
The hospital funding is one of several steps the McKee Administration is taking to provide additional support to hospitals, primary care providers, and other health care organizations. The Governor’s recommended FY27 budget includes funding to assist lower-income Rhode Islanders in accessing health coverage through HealthSource RI, to support Medicaid as the state takes over additional operations previously managed by the federal government, and to ensure access to affordable women’s reproductive health care.
These latest actions follow the Governor’s earlier package of health care supports, which included requiring commercial health insurers to increase funding for primary care reimbursements, regulating a 20% reduction in prior authorization requirements, providing $6.7 million in grants to recruit and retain primary care providers, and expanding the primary care student loan forgiveness program.
Most recently, the Governor and his administration worked with the Attorney General’s Office and the General Assembly to finalize the sale of Fatima and Roger Williams Hospitals, ensuring continuity of their critical services for the Rhode Island community. The Governor also worked directly with the union and hospital leadership to resolve the Butler Hospital strike last year.