Over the past nine months, South County Health’s Administration and Board of Trustees have taken exhaustive efforts to engage a small group of disgruntled individuals who have formed a non-profit organization invoking our name, ‘South County Hospital’. Unfortunately, their actions, both before and after the creation of this organization, have caused confusion, concern, and anxiety in our community. Despite our attempts to resolve disagreements amicably, they have chosen to take a non-constructive way forward. Their efforts have specifically targeted disrupting our critical relationships with donors—efforts that have been aided by a former employee of South County Health who violated their fiduciary duty to protect confidential donor information, placing millions of dollars in philanthropic support at risk.
This group claims to stand for protecting quality care, yet their actions threaten the very funding that contributes to allowing the hospital to maintain that standard. By targeting donor contributions, they risk creating the very lapses in care and quality that they claim to oppose.
To sit back any longer and not take affirmative action to protect the relationship between South County Hospital and its donor base risks the loss of one of South County Hospital's most valuable assets. Therefore, our fiduciary duty compelled us to take legal action to safeguard donor confidentiality and ensure that philanthropic contributions continue to support critical hospital services and patient care.
As Rhode Island’s last independent health system, philanthropic support from the community is essential to our ability to deliver on our mission of being Rhode Island’s Most Trusted Health Partner. Our hospital exists today because, over 100 years ago, members of our community came together to raise funds and build South County Hospital on land donated by the town of South Kingstown.
Today, that same spirit of philanthropy continues to drive our mission—allowing us to make critical advancements in patient care, technology, and services. Philanthropy is not just about financial contributions—it’s about saving lives. Every donor gift directly supports our ability to provide exceptional care to those who need it most. Any erosion of donor trust threatens South County Health's ability to sustain and grow essential programs, impacting patient access and the hospital's long-term stability.
Any compromise to donor trust threatens the hospital’s ability to grow essential programs, and long-term stability and ultimately jeopardizes patient access. At a time when we are actively engaged in potential partnership discussions, the conduct of the individual and group involved may hinder our ability to secure a beneficial partnership.
The privacy and security of our donors are imperative to our ability to raise funds through philanthropic efforts to acquire new technology, enhance services, and improve facilities. We have strict policies and protections in place to safeguard donor information, and these were breached intentionally. By taking legal action, SCH aims to ensure that donor contributions remain secure, are used as intended, and continue to support the future of healthcare in South County for another 100 years
What You Need to Know
- South County Health did not take this step lightly. Taking legal action was not our first choice, and we pursued every reasonable alternative before taking legal action. However, to protect the organization from further harm, and because a former employee breached fiduciary duties, it is our fiduciary responsibility to protect South County Health and our donors from misuse of confidential information.
- The actions of this group could negatively impact ongoing partnership discussions. At a time when we are actively engaged in potential partnership discussions, the conduct of the individual and group involved may hinder our ability to secure a beneficial partnership.
- South County Health remains financially stable. With over $90 million in pooled assets, and maintaining an average of 143 days cash on hand – a strong financial indicator – we are not at risk of closing. However, as Rhode Island’s last independent health system, we do not have the scale or financial backing of larger hospital networks, and philanthropy plays an even larger, more vital role in expanding services, investing in innovative medical technology, and funding programs that directly improve community health. Interference with donor contributions threatens these efforts—and by extension, the patients and families who rely on us for care.
- This lawsuit is not about silencing critics or punishing donors for redirecting their contributions to another non-profit. It is about protecting donor confidentiality and ensuring philanthropic contributions are not misused or interfered with. Donors have always had and will continue to have, the ability to direct their contributions as they see fit.
- This lawsuit will not impact patient care, staffing, or day-to-day operations.
As we move forward, we remain committed to transparency, communication, and ensuring that our donors’ generosity continues to make a meaningful impact in our community. We will remain focused on delivering the exceptional care our community expects while protecting donor privacy and reinforcing donor confidence–ensuring that critical services remain available to those who need them most.
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