PROVIDENCE, R.I. (WPRI) — Rhode Island’s largest hospital group plans to close an outpatient facility on the East Side of Providence early next year as the not-for-profit corporation works to cut costs, 12 News has learned.

Lifespan officials confirmed they will shut down the Rhode Island Hospital Surgery Center at Wayland Square on Jan. 31. About 20 employees will lose their jobs, but can apply for other positions at the hospital.

The disclosure comes a day after Target 12 revealed that Lifespan posted an operating loss of $77 million in its 2021-22 fiscal year, which ended Sept. 30. The health system is Rhode Island’s largest employer and owns Rhode Island, Miriam, Bradley and Newport hospitals.

Kathleen Hart, a spokesperson for Lifespan, said the services offered at the Seekonk Street facility will move to Rhode Island Hospital’s main facility “as part of a consolidation of perioperative care.” (Perioperative is a medical term for the process of having surgery.)

“Employees will have an opportunity to apply for transfers to open positions within Lifespan and any employee who is unable or does not wish to do so will receive severance pay after this change goes into effect in January,” she said.

The Surgery Center first opened in 1994 as Wayland Square Surgicare and was originally owned by a for-profit company, Medical Care International. Lifespan went on to acquire and rebrand the facility around 2011.

Ted Nesi (tnesi@wpri.com) is a Target 12 investigative reporter and 12 News politics/business editor. He co-hosts Newsmakers and writes Nesi’s Notes on Saturdays. Connect with him on Twitter and Facebook