by Nancy Lavin, Rhode Island Current
April 3, 2026
Newport Hospital’s Noreen Stonor Drexel Birthing Center will remain open, Brown University Health announced on Friday.
The commitment comes amid doubts over the award-winning labor and delivery unit’s future, which appeared in jeopardy due to decreasing births on Aquidneck Island and financial strain across the health care giant’s two-state operations. The hospital operator initially committed to keep the 10-suite birthing center open through the end of its fiscal year on Sept. 30 amid public pressure from residents and state and local officials. But company executives refused to publicly address long-term plans as recently as two weeks ago, citing the ongoing review by a panel of health care experts and community advocates.
The Community Advisory Panel’s work has not yet finished, with the third of four expected meetings scheduled for April 28. But a separate review by a private management consultant preempted the panel’s recommendations, affirming the viability of the birthing center, according to Brown Health.
Nicole Searles, a spokesperson for the hospital, declined to share a copy of the report by Kaufman Hall, citing confidentiality, including “proprietary benchmarking data.” However, the findings have been shared in full with the Community Advisory Panel, Searles said in an email Friday.
“The independent review affirmed the quality and safety of care delivered by our clinical teams and outlined the additional investments needed to ensure the program remains strong and financially sustainable,” Dr. Tenny Thomas, hospital president, said in a statement Friday. “This is about protecting access to care for families across our region. With continued partnership and support, we are confident in our ability to sustain this vital service for years to come.” A sign supporting keeping the Newport Hospital Birthing Center open is on display on Broadway across the street from the hospital. (Photo by Janine L. Weisman/Rhode Island Current)
However, the positive news comes with a major caveat: $4.9 million in additional, annual revenue to sustain operations, according to Newport Hospital.
Cassie Voll, cofounder of Moms over Margins who gave birth at Newport Hospital in 2023, pointed to the lack of details surrounding the report, and funding gap, as a lingering concern.
“I have no idea where that figure is coming from,” Voll said in an interview Friday. “I am hopeful that Brown University Health’s plan includes a long-term strategy.”
Even with the community panel, Voll said communication and transparency from the company has felt lacking. The 12 advisory panel members were required to sign confidentiality agreements limiting what they can share publicly during the review process.
“I think moving forward, the thing that we would be looking for is more dialogue and more communication between the community and Brown Health,” Voll said.
Rep. Lauren Carson, a Newport Democrat and champion for the birthing center, also noted the challenges that lie ahead, including filling the estimated funding gap, which the hospital said it hopes to do through state and philanthropic support.
“This is a big first step,” Carson said in an interview Friday. “It’s not over.”
According to Brown Health, the review touted the strength of the birthing center’s clinical commitment and round-the-clock care, while pointing to areas in need of attention: workforce sustainability, more complex and intensive medical cases and a “low-volume setting.” Company executives have pointed to declining demand for the birthing center — 489 births in fiscal 2024 — as a reason for potential closure.
Especially amid mounting financial pressures tied to underperformance at Brown Health’s two hospitals in Massachusetts — which continue to drag down the company’s balance sheet due to low patient volume and staffing shortages. Brown Health ended the first quarter of its new fiscal year $17.6 million in the red, stemming largely from operating losses at St. Anne’s Hospital in Fall River and Morton Hospital in Taunton. Its Rhode Island profile, which includes Rhode Island Hospital, The Miriam Hospital and Bradley Hospital, remains profitable.
Federal policy changes that restrict Medicaid eligibility and curtail pass-through funding to hospitals that treat Medicaid patients adds to the financial pressure; Brown Health projects an extra $100 million to $200 million in net annual losses from funding cuts and policy changes under the One Big Beautiful Bull Act.
The same law has also strained financial forecasts for the state’s budget, with legislative leaders warning of tough decisions ahead in the state’s annual tax-and-spending plan.
A formal request for state funding for the hospital has not been submitted to the legislature as of Friday, said Larry Berman and Greg Pare, who act as spokespeople for House Speaker K. Joseph Shekarchi and Senate President Valarie Lawson.
Any requests, if submitted, will go through the standard legislative vetting process, Berman and Pare said in an email.
Also awaiting legislative hearings are companion bills filed by Carson and Sen. Dawn Euer, a Newport Democrat, that would prevent health care facilities from closing or substantially reducing maternity units without a thorough state review and public hearing process.
Gov. Dan McKee has carved out $10 million in his fiscal 2027 budget proposal for hospitals to offset reduced federal funding for Medicaid patients and those without health insurance. A breakdown of the money to each hospital was not immediately available, but would be distributed based on the insurance mix of patients treated at each facility.
Brown University Health President and CEO John Fernandez attended a press event at Hasbro Children’s Hospital on Friday to highlight his support for McKee’s budget proposal.
“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,” Fernandez said in a statement. “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.”
Birthing center advocates have planned a State House lobby day for 3 p.m. on April 9.
The Community Advisory Panel will continue with its series of scheduled meetings to discuss birthing center operations, Searles said.
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- 3:15 pmUpdated to include a response from Newport Hospital denying a request for a copy of the consultant report on the birthing center.
- 2:04 pmUpdated to include details of Gov. Dan McKee’s fiscal 2027 budget proposal for $10 million in funding for hospitals.
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