Lifespan Receives Over a Hundred Million in CARES Act Money, Then Gives Management Bonuses

Lifespan Receives Over a Hundred Million in CARES Act Money, Then Gives Management Bonuses

Lifespan is giving out “special management compensation” bonuses to top execs — after reportedly receiving more than a hundred million dollars in federal CARES Act funds during the coronavirus pandemic. 

Lifespan - which refused to say just how much CARES Act funding they have received to date - defended the bonuses. 

“This fiscal year Lifespan provided a one-time performance recognition award to a very small number of mid-level managers who went above and beyond in their service during the COVID-19 crisis, working hundreds of extra hours on nights and weekends without being compensated because they are salaried employees,” said Lifespan spokesperson Kathleen Hart. 

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“This one-time recognition award is not annualized into the employee’s base salary and does not have any impact on annual merit increases for non-management employees," she added. 

Rhode Island’s “transparency” portal shows two Lifespan hospitals receiving CARES Act funds — Miriam Hospital at $21,011,844.77 and Bradley Hospital — listed under “Emma Pendleton Bradley Hospital” — receiving $3,637,531.

The state program differs from the U.S. Department of Health and Human Services’ program, which shows $71 million going to five Rhode Island hospitals — and per Congressman Jim Langevin’s announcement in July, nearly $50 million of that went to two Lifespan hospitals — Rhode Island Hospital and Miriam. 

Lifespan’s CFO, however, reportedly told bondholders in September that the group’s hospitals have received $130 million in federal aid so far. 

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As GoLocal reported in March, Lifespan was hit hard at the outset of the pandemic.

"Lifespan -- has announced a total loss of $75.7 million for the month of March," GoLocal reported. "The losses included an operating loss of $23.8 million for the month of March related to the COVID-19 crisis."

Lifespan is now moving forward with a merger with Care New England — and the nurses union wants details. 

This week, the United Nurses and Allied Professionals (UNAP) renewed the union's call for hazard pay for frontline workers after Lifespan President Dr. Timothy Babineau began singling out individuals within the health system for bonuses. 

"UNAP members have worked tirelessly and gone above and beyond in this last year,” said union President Frank Sims, RN. “We know what it means to deliver 'health with care,' and we'll be the ones at the bedside -- day in and day out -- when this crisis is over. Lifespan should know better, and Dr. Babineau should be ashamed of playing favorites with federal stimulus money."

Lifespan defended compensating nurses last year — prior to this year’s executive compensation bonuses. 

“Last fiscal year, despite financial challenges, Lifespan prioritized annual performance increases for eligible non-management employees including members of UNAP, and did not provide any raises for management across clinical and non-clinical settings,” said Hart.