Governor McKee Introduces Budget Amendment to Enhance Behavioral Health Services at Our Lady of Fatima

Published on Wednesday, May 28, 2025

PROVIDENCE, RI – Governor Dan McKee submitted a budget amendment recommending approximately $4.3 million in state funds to enhance behavioral health services at Our Lady of Fatima Hospital. Specifically, this funding will position the state to request approval from the Centers for Medicare & Medicaid Services (CMS) for a new Medicaid reimbursement rate structure that would support a 21-bed long-term care behavioral health inpatient unit at the hospital, serving higher-acuity patients with complex needs. If approved by CMS, this funding will be leveraged with federal matching funds totaling approximately $5.7 million.

“This budget proposal reflects our administration’s commitment to strengthening Rhode Island’s behavioral health system and ensuring access to critical services for those who need them most,” said Governor Dan McKee.

The unit at Our Lady of Fatima Hospital will be able to accept patients from community hospitals who require longer-term hospitalization, providing a place where they can continue to receive treatment and recover and prepare to re-enter the community or move to a lower level of care. This will enhance Rhode Island’s continuum of care, benefitting patients and freeing up beds at other hospitals for patients who need short-term acute care.

The $4.3 million appropriation is made possible through turnover savings in the Department of Human Services and savings projected within the Office of Healthy Aging’s At-Home Cost Share program as outlined in the state’s third-quarter report.