Providence and NP Poised to Lose $11 Million in Back Taxes Due to CharterCARE Deal

Providence and NP Poised to Lose $11 Million in Back Taxes Due to CharterCARE Deal

The City of Providence is going to have yet another major budget hole this year, and North Providence is set to take a revenue hit.

As of now, taxpayers are poised to clean up the mess at the failed CharterCARE hospitals. To add insult to injury, the financing scheme the new owners used to fund the acquisition of the hospitals specifically required the new owners to pay all back taxes within 45 days of closing. But, that is presently not happening.

Here is the situation as presently outlined by city and town officials.

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CharterCARE hospitals — Roger Williams and Fatima — were for-profit hospitals, but as part of the deal in which Atlanta-based Centurion bought the two hospitals out of bankruptcy, the hospitals changed to non-profits.

Along the way, the hospitals failed to pay Providence taxes in the past couple of years. And the new entity is only agreeing to pay a fraction of the back taxes, despite a requirement to pay all back taxes.

 

 

What Is Owed and What Have They Agreed to Pay

According to Providence Mayor Brett Smiley’s office, CharterCARE has only agreed to pay a little more than one-third of the outstanding amount due.

“CharterCARE is currently delinquent on their 2024 and 2025 tax bills. The current amount owed is $10,291,726.85 – however, the total pre-petition amount is $3,721,934.12,” said Josh Estrella, spokesperson for Smiley.

Moreover, the amount that CharterCARE has agreed to pay will be paid over four years.

This decreased the value of the payments.

“As a result of a tax payment agreement signed last week on March 4, CharterCARE will be making seventeen payments of $218,937 each to the City of Providence beginning on October 1, 2026, totaling. Consistent with bankruptcy rules, the post-petition amount will be handled in the context of the bankruptcy filing,” said Estrella.

When asked if the city has petitioned the bankruptcy court for payment?

Estrella said, “The City is actively working through the process with both the purchaser and the debtor regarding post-petition arrears.”

GoLocal wrote in response, “Interesting, please send me over the communications?”

Estrella said there was no written communication. “All post-petition arrears communications have occurred in preliminary phone calls between the City's legal department and the debtor,” said Estrella.

The hit for Providence taxpayers is $6,569,792.73 in back taxes, and the loss of approximately $4 million a year going forward.

North Providence is taking a similar hit.

Mayor Charlie Lombardi tells GoLocal that CharterCARE owes the town of North Providence for 2024 and 2025 taxes of $6,098,109.38.

He said that CharterCARE has only agreed to pay $2.2 million, and that will be paid in 17 payments of about $125,000 per quarter.

 

Financing Required: All Taxes Be Paid Within 45 Days of Closing

At a Special Meeting of the Board of Directors of the Rhode Island Health and Educational Building Corporation (RIHEBC) held on August 14, 2025, which approved the financing structure of the bonds for Centurion to purchase the CharterCARE hospitals, board member Lisa Andoscia pushed forth an amendment to ensure that taxpayers were protected.

A spokesperson for RIHEBC confirmed that the August approval was the vehicle for the financing of the deal.

Andoscia's amendment was adopted, and the minutes of that meeting reflect that approval.

Adopt the amended and restated authorizing resolution. Upon motion made by Secretary Andoscia and seconded by Director Perdikakis, it was unanimously voted to adopt the amended and restated authorizing resolution with the acknowledgment and appreciation of CharterCARE’s statement that it will catch up on back taxes and make efforts to negotiate a PILOT within forty-five (45) days of closing.

 

This story is developing…