Largest owner of R.I. community health centers to lay off 70 workers, citing Medicaid reimbursement rates
Despite what he called a 'strong balance sheet, the layoffs were directed by PCHC's board, Thomas said, which has 'a fiduciary responsibility to PCHC and its patients."
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'These are difficult but necessary decisions to ensure we are here for the community for years to come,' said Thomas.
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The news comes as other health care organizations around the state and region are facing deteriorating financial situations.
In Springfield, Massachusetts, Baystate Health
In Rhode Island, primary care network Anchor Medical Associates is permanently shutting down this spring,
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Prior to cutting more than 70 of its employees, Providence Community Health Centers was on track to lose $5 million in 2025, executives say. Those losses are a result of Medicaid rates not keeping up with inflation, and promised relief from the state that rates would be raised, but never delivered, said Brett Davey, PCHC's director of development.
PCHC, which also cares for homeless individuals and families, relies on Medicaid for 70 percent of its funding. But over the last five years, reimbursement rates have been increased 10 percent, while costs to deliver care have risen by 30 percent, said Davey.
Facing mounting public pressure to find a solution for health care, Governor Dan McKee
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PCHC also relies on the 340B pharmacy program, a federal program that requires pharmaceutical manufacturers to sell certain drugs at discounted prices to
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Enacted under former President George H.W. Bush, the 340B Drug Pricing Program is a lifeline for many nonprofit providers. But in recent years, while the program has expanded – discounts have risen from $6 billion in 2015 to $46.5 billion in 2022, according to the Lown Institute in Massachusetts – drug manufacturers have sought to scale it back, and have looked to restrict how many community pharmacies can use such discounts.
'PCHC remains committed to fighting at the state and federal levels for relief,' the system wrote in a statement.
Alexa Gagosz can be reached at
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