Lifespan Corporation Plans $3.5 Billion Infrastructure Investment Over Next Two Decades

Lifespan Corporation, the owner and operator of Rhode Island’s largest hospitals, has announced plans to invest up to $3.5 billion in infrastructure improvements over the next two decades. This significant investment comes after years of deferred projects due to the challenging healthcare landscape.

The projects could include reconfiguring campuses, replacing century-old buildings, and adding new inpatient facilities to enhance patient care and operating efficiencies. Capital spending at Lifespan has averaged an 87 percent depreciation over the last five years, indicating the need for a more robust level of spending moving forward.

In 2024, Lifespan plans to allocate $200 million towards improvements, with annual spending ranging from $150 million to $175 million over the next 20 years. Additionally, discussions are underway with Brown University regarding a strengthened partnership that could result in Lifespan changing its name to “Brown Health.”

The bond rating for Lifespan highlights the need for constructing a new inpatient facility at Rhode Island Hospital and modernizing The Miriam Hospital. The system anticipates fundraising for these projects and is considering issuing $300 million in tax-exempt bonds for construction, expansion, and renovations.

Despite challenges faced by Rhode Island’s healthcare industry, including the pandemic and staffing crisis, Lifespan posted an $8.6 million operating profit in Fiscal Year 2023. The state has approved rate increases and new payments to hospitals to support Medicaid members.

The investment in infrastructure improvements by Lifespan demonstrates a commitment to enhancing healthcare services in Rhode Island and ensuring the long-term sustainability of its hospitals. Stay tuned for more updates on this developing story.