Cuts in defense, Medicare could mean fewer jobs for R.I.

PORTSMOUTH stands to lose $47.6 million due to the defense spending sequestration mandated by the Budget Control Act of 2011. Middletown, Providence, Pawtucket and Woonsocket round out the top five hardest hit Rhode Island municipalities with a cumulative loss of $24.4 million. For a larger version of this image, click HERE.
Posted 9/13/12

WASHINGTON – Rhode Island could lose up to $82 million due to defense sequestration and more than 3,000 jobs due to sequestration in Medicare spending, according to reports released by the Center for Security Policy and the Hospital Association of Rhode Island, respectively.

According to the reports released by the Center for Security policy, the Ocean State stands to lose $82 million in contracts due to the 10-year, $500 billion cuts to the nation’s defense budget under sequestration.

The reports provide a 2011 baseline to see how Rhode Island cities, towns, counties and congressional districts may be affected by the across-the-board sequestration cuts in the 2013 defense budget.

According to the Center release, these sequestration defense budget cuts will be an estimated total of 18 percent or more when combined with earlier budget cuts.

As a whole, using 2011 data, Rhode Island stands to lose $82.02 million of its $455.6 million in government contracts if an 18 percent cut is enacted or $41 million if a 9 percent cut is enacted.

Portsmouth would be hit hardest of all Rhode Island municipalities, losing $47.6 million due to sequestration. Middletown, Providence, Pawtucket and Woonsocket would round out the top five, standing to lose a cumulative $24.4 million due to sequestration. To see more information, visit

In a separate report released by the Hospital Association of Rhode Island, the American Hospital Association, the American Medical Association and the American Nurses Association predict that Rhode Island could lose up to 3,000 health care and health industry jobs by 2012 as a result of the 2 percent sequester of Medicare spending mandated by the Budget Control Act of 2011.

The report, produced by economic impact study firm Tripp Umbach, predicts that reductions in Medicare payment for health care services will lead to direct job losses in the health care sector, reduced purchases by health care entities of goods and services from other businesses, which would lay-off workers, and reduced household purchases by workers who lose their jobs.

“Hospitals are major contributors to the Rhode Island economy,” Edward J. Quinlan, president of the Hospital Association of Rhode Island, said in a statement. “Cuts to hospital services could create devastating job losses and threaten the access to quality health care that Rhode Islanders need.”

“As the impact of these cuts ripples through the economy, jobs will be lost across many sectors beyond health care,” said the report. The report estimates that, during the first year of the sequester, nearly 2,000 jobs will be lost in Rhode Island.

PBN Hosted

Join PBN for the best networking event and party of the winter - January 15, 2015 - the Book of Lists Party at the Providence Public Library. Reserve your spot early!
  • Best Places to Work
    Enrollment is now open for the 7th annual Best Places to Work program. Winners w ...
  • Manufacturing Awards
    Applications are now being accepted for the 2nd Annual Manufacturing Awards. Dea ...
Purchase Data
Book of Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  • Purchase an e-File of the entire Book of Lists database
  • Purchase a printed copy of the Book of Lists
    Latest News