State Rep. Lauren H. Carson is calling on Brown University Health to publicly commit to keeping the Noreen Stonor Drexel Birthing Center at Newport Hospital open — and warning that continued state financial support for the health system could hinge on that commitment.
Carson, a Newport Democrat, made the demand this week in response to Brown Health’s first-quarter financial report, which showed an $18 million operating loss driven by two Massachusetts hospitals the system acquired in 2024.
“Brown Health’s losses are all coming from out-of-state, and yet, once again, the Noreen Stonor Drexel Birthing Center at Newport Hospital — the only labor and delivery unit on Aquidneck Island — is being held up as a potential casualty,” Carson said. “That is unacceptable.”
Rhode Island Profitable, Massachusetts a ‘Major Challenge’
Brown Health concluded the first quarter of its new fiscal year, which ended Dec. 31, with a $17.6 million operating loss — a $35 million swing compared with the same period in 2024, according to reporting by Rhode Island Current.
On a call with investors last week, Brown Health Chief Financial Officer Peter Markell described Massachusetts as “still our major challenge” while characterizing its Rhode Island facilities as “consistently profitable.”
St. Anne’s Hospital in Fall River and Morton Hospital in Taunton — both acquired from bankrupt Steward Health Care in 2024 — together reported more than $22 million in operating losses in fiscal year 2025. Low patient volume and staff shortages have been recurring problems at both facilities. By contrast, Brown Health’s Miriam, Bradley and Rhode Island hospitals all finished the same year in the black.
Audited financial statements from fiscal year 2025, which ended Sept. 30, show Newport Hospital ended that year with a $3.8 million operating loss. Still, Markell told investors Newport remained a “performing” facility — though he drew a distinction when it came to the birthing center specifically.
“We want to run a first-class, high-quality birthing center in Newport, but the revenue has got to be there,” Markell said.
Hospital executives have previously cited declining demand for the labor and delivery unit, which has reported roughly 400 births annually in recent years.
“Brown Health made the decision to purchase St. Anne’s and Morton,” Carson said. “Rhode Island families should not be the ones absorbing that risk.”
A Question of Partnership
Carson pointed to significant state investment in Brown Health in recent years. The General Assembly increased Medicaid reimbursement rates and added hospital funding in the fiscal year 2026 budget beyond what the governor initially proposed. The state has also extended hundreds of millions of dollars in state-directed Medicaid payments to support the system.
“Rhode Island has invested heavily in Brown Health’s success,” Carson said. “What we cannot accept is a system that benefits from Rhode Island’s public support while looking to cut the services Rhode Islanders need most in order to offset the costs of an out-of-state expansion strategy.”
The financial picture is further complicated by looming federal policy changes. Brown Health projects between $100 million and $200 million in net annual operating losses from restricted Medicaid eligibility and funding cuts under the One Big Beautiful Bill Act, including $20 million to $90 million in additional annual uncompensated care costs by 2034.
“This is not minor,” Markell told investors last week.
‘A Lifeline, Not an Amenity’
Alarm bells over the birthing center’s future first rang last July, when Brown Health said it was exploring cost-cutting options in Rhode Island — including potentially closing the Newport unit. Public pressure from residents and local and state leaders prompted executives to keep the center open and funded through Sept. 30.
A 12-member community advisory panel tasked with assessing the birthing center’s operations has met twice, in November and February. A third meeting is scheduled for April 28, with the panel expected to issue recommendations this summer.
For Carson, waiting that long is not an option.
“The Newport birthing center is not an amenity — it is a lifeline,” she said. “Expecting a pregnant woman on Aquidneck Island to travel off the island for labor and delivery is not a reasonable alternative. It is a threat to maternal health and safety.”
Legislation Pending, But No Hearing Scheduled
Carson and Sen. Dawn Euer have introduced companion bills that would require a rigorous review process before any birthing center could be closed or have services reduced. As of last week, neither bill had been scheduled for a preliminary hearing before its respective committee.
Markell declined to comment on the legislation when asked by Rhode Island Current, saying, “It’s easy to have legislation and do those things, but where’s the funding that allows the revenue to cover the cost of those facilities?”
Calls for Action Before April 28
Carson is urging colleagues in the General Assembly and the governor’s office not to wait for the April 28 advisory panel meeting before making their positions known.
She is calling on lawmakers and the governor to make clear that continued public support for Brown Health — including state-directed Medicaid payments — is contingent on the system meeting its obligations to Rhode Island communities.
“Rhode Island has been a good partner,” Carson said. “It is time for Brown University Health to be one too.”