Providence, RI Market Overview

The Providence healthcare market, which includes all of Rhode Island and Bristol County in Massachusetts, has experienced a slow economic recovery that lags other parts of New England. The public sector in both states has introduced dramatic reductions in employee health insurance, while both states are well on their way to creating state-run health insurance exchanges. The region has higher unemployment and lower education and income levels than neighboring regions, all of which combine to keep health system margins slim. At the same time, in both states health plans are heavily regulated and subject to pressure to keep premium increases low. A steady movement toward accountable care and global payment may eventually turn the cost curve around, and improving economic conditions should ease current pressures on healthcare spending over time.