Media Release

For: Immediate Release
Date: March 30, 2007

Health Department Assesses Hospital Capital Investment

Today, the Rhode Island Department of Health (HEALTH) released a report titled, Hospital Capital Investment in Rhode Island (2005). This Report analyzes the hospital capital base and amount of new capital investment in terms of the financing mix and the associated costs. In addition, the ‘adequacy’ of this new investment is assessed and a summary of each hospital’s capital structure is presented.

According to the Report, Rhode Island hospitals would cost $3.4 billion (in 2005 dollars) to replace, they invested an average of $157 million annually in new capital, and this was enough to exceed their minimal capital needs statewide. In addition, Rhode Island hospitals used less debt than those in the Northeast to finance their capital assets (52% versus 61%), and their capital-related fixed-expenses were also favorably lower (4.7% versus 5.8%).

“This report continues HEALTH’s role as a key provider of healthcare performance information”, said Director of Health, David R. Gifford, MD, MPH. “Hospitals are highly capital-intensive and evaluating this provider community may serve as a first step in implementing comprehensive healthcare and facilities planning in the state, given the continuing concerns over medical costs and trends”.

The Report is available on HEALTH’s website at: www. HEALTH.ri.gov. Additional reports on hospital costs, clinical performance, community benefits, patient satisfaction, and financial performance are also available on this site.