You can now read 10 articles in a month for free on BostonGlobe.com. Read as much as you want anywhere and anytime for just 99¢.

The Boston Globe

Business

Lifespan health system warns of budget woes

PROVIDENCE — The Lifespan health system, one of Rhode Island’s largest employers, is facing what it described Friday as a significant budget shortfall and is asking management and employees to propose ways to save money that will help it recover.

Lifespan said in a statement it has fallen ‘‘significantly below budget’’ in the first five months of the fiscal year, which began Oct. 1.

Continue reading below

In a memo to employees, chief executive Timothy Babineau attributed the shortfall to lower reimbursement rates, an increase in charity care, longer patient stays, and the state’s struggling economy. He said increased competition from out-of-state providers has also stymied the system’s ability to grow.

Lifespan has already instituted a hiring freeze but called it premature to discuss specific cuts, including possible layoffs.

Loading comments...

You have reached the limit of 10 free articles in a month

Stay informed with unlimited access to Boston’s trusted news source.

  • High-quality journalism from the region’s largest newsroom
  • Convenient access across all of your devices
  • Today’s Headlines daily newsletter
  • Subscriber-only access to exclusive offers, events, contests, eBooks, and more
  • Less than 25¢ a week