Newport Hospital's Birthing Center to Stay Open Amid Uncertain Times

Brown University Health Decides to Keep Newport Hospital’s Birthing Center Open

After months of careful consideration, Brown University Health has announced that the Noreen Stonor Drexel Birthing Center at Newport Hospital will remain open for the next fiscal year. This decision comes after significant community concern and advocacy from local leaders, city councilors, and some lawmakers who opposed the potential closure.

The announcement, however, is not a final resolution. According to a memo released by Brown Health President and CEO John Fernandez, the center is currently included in the FY26 budget and is not scheduled to close. However, its long-term future will be evaluated over the next year. A task force will be formed to review labor and delivery services at Newport Hospital, with input from community leaders, donors, nurses, physicians, and others. The memo emphasized that recruiting OB/GYNs remains a major challenge, and sustaining a strong program depends on both clinical expertise and adequate patient volume.

Other Facilities Also Remain Open

In addition to the birthing center, two other facilities previously under consideration for closure have also been spared. These include Gateway Healthcare, the state’s largest nonprofit behavioral care provider, and Samuels Sinclair Dental Center, which serves children and individuals with special needs. Both facilities have long histories and are essential providers of critical care in Rhode Island.

Advocates had warned that closing these facilities would have been devastating for the state’s behavioral health system and the special-needs community. The memo noted that Samuels Sinclair Dental Center will assess and improve operations with the goal of increasing philanthropic giving to offset financial losses. Similarly, Gateway Healthcare will focus on operational efficiencies. Over the past year, the facility has made changes to prevent financial losses, and state investments have helped stabilize its operations.

Balancing Financial Pressures

Brown Health faces ongoing challenges in maintaining financial stability while continuing to provide high-quality care. Other programs, such as state contracts for prisons and clinics, will continue for the coming year. A building project to renovate Rhode Island Hospital will proceed after revisions. However, Brown Health Home Medical, which provides medical equipment and supply services, will close on September 5.

Changes are also being planned for inpatient adult psychiatry at Rhode Island Hospital. The hospital lost nearly $25 million in fiscal 2024 in these services, leading Brown Health to reduce reliance on contract labor, reallocate staff, and invest in training and safety. However, these changes will not take effect until the strike at Butler Hospital is resolved.

Fernandez’s memo highlighted that Brown Health aims to operate at a 3% margin, although this has not been the case for the last decade. Rising costs for pharmaceuticals, supplies, equipment, and labor have led to the need for $1.2 billion in investments to bring facilities and technology up to expected standards. In the last two years, Brown Health also lost nearly $138 million from Medicaid under-reimbursements, despite securing $23 million from state funds—falling short of the $270 million sought by hospitals across the state.

State Leaders Respond

State leaders have acknowledged the financial pressures faced by Brown Health and other hospitals. Attorney General Peter Neronha thanked Brown Health for keeping the birthing center open, noting the long-standing concerns about low Medicaid reimbursement rates and other financial stressors. He emphasized that without meaningful investment in the healthcare system, more difficult decisions about closures may become necessary.

Governor Dan McKee, who had advocated for the birthing center, welcomed the news. He highlighted the importance of the center for women’s health in Newport County, emphasizing the value of timely access and expert care during childbirth.

Ongoing Challenges and Future Outlook

The memo also pointed to broader challenges facing health systems in Rhode Island, including rising costs, uncertain state funding, and declining federal support. These issues may intensify with the passage of the One Big Beautiful Bill Act, according to the memo.

Fernandez stressed that if underfunding is not addressed within the next one to two years, further reductions in patient services may become unavoidable. Brown Health remains committed to avoiding such outcomes and continues to work toward sustainable solutions.