Future of Newport Hospital Birthing Center Uncertain Amid Financial Challenges

Newport Hospital’s Noreen Stonor Drexel Birthing Center faces an uncertain future as Brown University Health navigates significant financial headwinds, particularly stemming from underperforming hospitals in Massachusetts and looming federal funding cuts. While the birthing center was temporarily secured through September 30, 2026, due to public pressure, its long-term viability remains in question as the health system seeks to reduce costs and improve revenue performance.

Brown Health Reports First Quarter Loss

Brown University Health reported a $17.6 million operating loss for the first quarter of its fiscal year, ending December 31. This represents a $35 million decline in profits compared to the same period in 2024. The losses are largely attributed to financial difficulties at St. Anne’s Hospital in Fall River and Morton Hospital in Taunton, Massachusetts, which Brown Health acquired from bankrupt Steward Health Care in 2024. Rhode Island Current reports that these hospitals have struggled with low patient volume and staff shortages.

Federal Funding Cuts Add to Financial Strain

Further exacerbating the situation are anticipated federal funding cuts related to Medicaid eligibility and state health exchanges. Brown Health projects an additional $20 million to $90 million in annual costs for uncompensated care by 2034, and anticipates losing between $50 million and $117 million annually due to new caps on federal funding for Medicaid patients. Rhode Island Current

Newport Hospital’s Performance

Despite the overall financial challenges, Brown Health executives indicated that operations in Rhode Island remain profitable. However, Newport Hospital itself ended fiscal year 2025 with a $3.8 million operating loss. Rhode Island Current. Executives have specifically identified the birthing center as an area of concern, stating the need for increased revenue to justify its continued operation.

Legislative Efforts to Protect Birthing Center

Newport lawmakers have introduced legislation that would require a comprehensive review process before any birthing center could be closed or have its services reduced. Rhode Island Current. The bills, sponsored by Rep. Lauren Carson and Sen. Dawn Euer, have not yet been scheduled for hearings.

Community Advisory Panel Review

A 12-member community advisory panel is currently assessing the operations of the Noreen Stonor Drexel Birthing Center. The panel has met twice, in November and February, with a third meeting scheduled for April 28. Rhode Island Current. Recommendations from the panel are expected this summer.

Brown Health’s Expansion and Integration

Brown Health recently merged with Brown Physicians Inc. In October, a move that resulted in a $1.1 million net operating loss in the first quarter. As part of the merger, approved by the Rhode Island Office of the Attorney General, Brown Health is obligated to take on 40,000 new primary care patients by the conclude of 2029, requiring the hiring of at least 27 additional primary care providers.

Brown University Health System Overview

Brown University Health is a comprehensive, integrated academic health system affiliated with The Warren Alpert Medical School of Brown University. Brown University Health includes Rhode Island Hospital, Hasbro Children’s Hospital, Bradley Hospital, Newport Hospital, Gateway Healthcare, Saint Anne’s Hospital, and Morton Hospital.

Brown Health Medical Group Primary Care, Middletown, formerly located in Newport, moved to 99 East Main Road, Suite 19A, Middletown, RI 02842 on December 15, 2025. Brown University Health. The phone number for the Middletown practice is 401-846-0055.