City of Ashland and Asante Reach Path Forward on Future of Hospital

MEDFORD, Ore. (Dec. 11, 2025) — Asante and the City of Ashland are continuing joint efforts to navigate significant changes planned for Ashland Community Hospital, with both sides acknowledging that difficult decisions are needed to maintain essential health care access for local residents.

City officials noted that the hospital faced similar challenges more than a decade ago. In 2013, Ashland sold the facility to Asante during what leaders described as another turbulent period. Since then, Asante has invested heavily in the hospital and explored clinical service expansions, but shifting demographics and mounting regulatory and economic pressures in Oregon have prevented a sustainable path forward under the current model.

“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. Moving forward in this way provides clarity and simplicity, both of which are needed as each of our organizations manage through a difficult financial landscape,” said Tonya Graham, mayor of Ashland.

A central element of the transition is converting the hospital into a satellite campus of Asante Rogue Regional Medical Center in Medford. The shift is aimed at reducing duplication of services that have seen declining use while preserving access to the ones Ashland residents rely on most. The 24/7 emergency department, imaging, laboratory services and outpatient surgeries will continue operating at the Maple Street location. Inpatient and obstetric services will move to Rogue Regional.

“We’re grateful for the continued collaboration and support from the City of Ashland,” said Tom Gessel, president and CEO of Asante. “As a locally owned and governed not-for-profit health system, our Mission remains to provide quality health care services in a compassionate manner valued by the communities we serve. These services must also be viable and sustainable for the longer term. We feel strongly this transition will allow us to continue caring for Ashland residents with the services utilized the most.”

Asante and the City will work through the remaining elements of their affiliation agreement between now and spring 2026, with both parties signaling they expect their long-standing partnership to continue into the future.