Mayor Smiley Signs PILOT Agreement with Brown University Health

Mayor Brett P. Smiley and Brown University Health President and CEO John Fernandez today announced the signing of the Payment In Lieu of Taxes (PILOT) agreement between the City of Providence and Brown University Health, formerly known as Lifespan. The agreement ensures that the hospital system will contribute $1.5 million in voluntary payments to the city over the next three years. This marks the first formal PILOT agreement between Brown University Health and the city and represents the largest annual contribution the hospital system has made to Providence in a decade. It also reflects the city's continued efforts to ensure that tax-exempt institutions contribute directly to the community.

"By signing this agreement with Brown University Health, we're reinforcing the critical role that Providence's tax-exempt institutions play in supporting the city's growth and long-term sustainability," said Mayor Brett Smiley. "This agreement reflects our continued commitment to ensuring these institutions contribute meaningfully to the city, not only through financial support but also by working together to strengthen the future of our community."

Under the terms of the agreement, Brown University Health will make two annual installments of $750,000, one in fiscal year 2025 and another in fiscal year 2026. The three-year agreement also formalizes and quantifies the community contributions that Brown University Health provides to Providence, with an estimated value of $50 million annually. Within the memorandum of understanding (MOU), Brown University Health has agreed to enter negotiations with the city in the third year of the MOU for a future PILOT agreement to ensure continued collaboration between Brown University Health and the city.

"We are pleased that our agreement to make a $1.5 million voluntary payment to the City of Providence over three years was approved. Brown University Health is proud of the vital contributions we make to our communities - from world-class health care to our standing as the state's largest employer," said John Fernandez, president and chief executive officer of Brown University Health. "We take our commitment to the City of Providence and the community very seriously. Our community depends on us, and we depend on their support. A critical part of our mission is to provide care to everyone who walks through our doors regardless of their ability to pay. We contribute over $50 million annually to providing unreimbursed care and other essential community benefits. We appreciate the collaboration of Mayor Smiley and his team and their recognition of the contributions and the important role that Brown University Health plays in our host city."