‘Shameful’: Providence leaders frustrated with Lifespan over PILOT negotiations

PROVIDENCE, R.I. (WPRI) — Providence leaders continue to express frustration with the pace of ongoing financial negotiations with the state’s largest hospital group, Lifespan.

Nonprofit organizations are exempt from paying property taxes, but some of the city’s largest non-taxpaying property owners nonetheless have historically agreed to make payments-in-lieu-of-taxes to offset the loss tax revenue and their use of city services.

The city last year reached a 20-year PILOT agreement with Brown University, Johnson & Wales University, Providence College, and the Rhode Island School of Design, which could generate upward at least $177 million for the city.

But Lifespan — one of the city’s largest property owners — wasn’t part of the agreement, and Providence Mayor Brett Smiley has publicly scolded the hospital group for dragging its feet. The issue came up last week during a closed-door meeting between the mayor and Providence city councilmembers.

“It was an important opportunity to make sure that the city is going to speak with one voice, that we are on the same page, the council and the mayor’s office, as we enter what might be the next and perhaps even final chapter of negotiations with Lifespan,” Smiley told reporters on Monday.

Meeting minutes show no votes were taken during the executive-session meeting last week. Afterward, City Council President Rachel Miller expressed disappointment with how slowly the negotiations are moving along.

“In nearby cities, hospitals contribute to ensuring the vibrancies of their local communities, but thus far, Lifespan has been unwilling to do the same,” Miller said in a statement . “As the state’s largest hospital system, this is shameful.”

Smiley said Monday that while the city and Lifespan have been trading proposals, both sides have yet to come to a mutual agreement. Lifespan spokesperson Jessica Wharton said the hospital group hopes a deal will be reached soon.

“Lifespan has a vested interest in supporting our host city and we very much hope to enter into an executed agreement soon for the benefit of the city and its residents,” Wharton said.

In June, Lifespan announced it would change its name to Brown University Health as part of a plan to expand its relationship with the Ivy League school in exchange for a multimillion dollar infusion of cash.

“It does not change the financial terms,” Smiley said. “The Brown affiliation doesn’t mean that Lifespan has more money to give to the city of Providence. It does mean that Lifespan hopefully has a chance to be more successful in the years to come.”

Alexandra Leslie ( aleslie@wpri.com ) is a Target 12 investigative reporter covering Providence and more for 12 News. Connect with her on Twitter and on Facebook .

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