Asante has left Ashland residents in the dark about why it plans to downgrade Asante Ashland Community Hospital from a general hospital to a reduced-services “satellite” of Rogue Regional Medical Center in Medford, and they deserve better, said Rep. Pam Marsh, D-Ashland.
The change, which is planned for this spring, will reduce Asante’s presence in Ashland, a city of about 21,000 people, to an emergency department and some outpatient services.
“The community wants to be a partner in this,” said Marsh, who served on the Ashland Planning Commission and City Council before being elected to the Legislature in 2016. “The people are really anxious for a conversation about why the decision was made and what comes next.”
Ashland residents were whipsawed by Asante’s apparent change of heart about operating a community hospital, Marsh said. Their faith in Asante is shaken, she said.
“What I worry about is what kind of relationship of trust” the community will have with Asante, she said.
“Asante hasn’t talked to the community about the facts of the situation,” she said. “I think public meetings would be very welcome.”
Asked to comment on the criticisms that the community health system is not being transparent about its decisionmaking, Asante officials did not respond.
On Dec. 3 Asante dropped its Ashland bombshell in a web page announcing its plan to surrender its license for 49 inpatient beds in Ashland. In addition to surrendering the license for the inpatient beds, Asante will close its Orthopedic Surgery, Sports Medicine and Spine Care Clinic, and its hospital-based birthing center, where 208 births occurred last year.
Its press release quoted Asante CEO Tom Gessel as saying “This past year, Ashland Community Hospital lost millions of dollars. Operating the hospital with inpatient and obstetrics services is no longer viable.”
Among the questions raised by community members about the closure, however, is whether the switch was necessary or whether there were other ways to go. Financial records for the quarter ending Sept. 30 show Asante’s three-hospital system reported to the state revenues of almost $1.5 billion and profits about $192.3 million.
Asante executives have not responded to inquiries from The Lund Report about the discrepancy between Asante’s financial reports to the state that Ashland had been profitable and Gessel’s claim that Ashland lost millions.
Records indicate system considered options besides closure
Records obtained by The Lund Report show that Asante Health contacted the Oregon Health Authority in August to discuss the closure and other options under the subject line “licensing and facilities question.”
After initial meetings with Asante, an Oregon Health Authority hospital regulatory manager asked Asante in early November if it was OK to alert top health authority officials of the system's plans for the hospital. Asante’s top attorney, Kristen Roy, asked her to wait, saying no final decision had been made.
“We would like for you to hold off because there are a few other options that we are considering. We will circle back as soon as we have more information,” wrote Roy in the Nov. 3, 2025 email. “We certainly appreciate that you need to brief your leadership team when we have made a final decision.”
The email chain appears to indicate that closure was just one of several options considered by Ashland to deal with its future. It’s unclear if some of those options would have allowed the nonprofit to continue offering inpatient and maternity services in Ashland.
In any event, Roy followed up with the hospital regulatory manager on Nov. 21, 2025 saying she was ready to update the state on the system’s “strategic planning efforts.”
Asked to comment on what other options were considered for Ashland during Asante’s strategic planning and why closure was eventually chosen as a path to pursue, a system spokesperson did not immediately respond.
Ashland is one of three hospitals operated by Asante, including the 378-bed Rogue Regional Medical Center in Medford and the 125-bed Asante Three Rivers Medical Center in Grants Pass.
Community prioritized access
As a nonprofit, Asante enjoys lucrative tax benefits in return for a commitment to serve local residents’ needs and invest its profits in ensuring access. As part of that, it is required to conduct an assessment of the community’s health needs every three years.
When Asante conducted an assessment for its Ashland hospital last year, it interviewed 56 residents and community stakeholders and surveyed others online and on paper. The assessment identified the community’s top priority as access to care. It listed several areas of focus, such as lowering barriers to health care, preventing and treating chronic conditions, and increasing access to mental health care — the same areas highlighted in its 2022 assessment. The report submitted to the state promised, among other things, “Asante will focus on the availability of primary and specialty care providers (and) expand locally available medical treatments and services.”
The assessment said nothing about a lack of need for Ashland hospital services or a realignment of priorities.
In the wake of the Asante announcement, many community leaders and members have spoken out against the closure of the 49 beds as well as maternity and other services.
City councilor Gina DuQuenne told the Ashland Chronicle “it looks like the people of Ashland will become casualties of war…. I say let’s sell and or lease the hospital …. We can not afford to not have a hospital in Ashland with a population of 21 thousand plus residents.”
Asante promised to operate hospital into 2028
While Asante moves ahead with its plan, the city of Ashland holds some leverage over the Medford-based health care company.
Under the terms of the contract signed in 2013, when Asante acquired the struggling hospital from the city, Asante agreed to operate as a general hospital for 15 years, or into 2028. If it fails to do so, according to the contract, “Asante will pay to the City $4 million …. Asante will make the payment within 60 days of the date Asante ceases operating ACH as a General Hospital.”
Asked about the contract, Ashland’s city attorney told Jefferson Public Radio it was too soon to dscuss potential legal action.
On Dec. 11 Asante and the city of Ashland issued a joint statement saying they would “work collaboratively” on the transition.
Ashland Mayor Tonya Graham was quoted in the joint statement as saying “The City of Ashland appreciates the offer from Asante to address the transitions at Ashland Community Hospital in a way that strengthens the City and builds on the mutually beneficial, long-term relationship between our organizations.”
Asked about the contract, Graham did not respond to questions from the Lund Report. Ashland Councilor Jeff Dahle said by email “it would be premature for me to speculate on any provision at this time.” Dahle said the city is committed to keeping its residents informed.
Asante expanded in Medford
Asante executives have not responded to The Lund Report’s request for a broader interview about the health system’s direction.
In 2024, Asante touted the opening of its $455 million patient pavilion at the Rogue Regional Medical Center in Medford. It included 20 new operating suites, a women and children’s hospital section, and intensive and intermediate care units.
Dr. John Maurer, a retired orthopedic surgeon who practiced at the Ashland Hhospital, calls it “the crystal palace.”
He laments the cuts Asante has been making in Ashland, including the closure of the Ashland Orthopedic Clinic. After the hospital’s transition, he said, Ashland emergency room patients will have to “transfer to the mothership”in Medford to continue their care.
Marsh, who represents Ashland in the Legislature, said she knows it’s challenging to operate a hospital system in the current climate. But, she said, the impending closure of Asante Ashland Community Hospital is “absolutely a loss, and we should grieve.”
