MEDFORD, Ore. (May. 4, 2026) — Asante leaders say the southern Oregon health system continues to face financial and operational pressures driven by rising costs, workforce constraints and ongoing reimbursement challenges affecting hospitals nationwide, according to a systemwide update sent to employees May 4.
In the message, Asante President and CEO Tom Gessel said the organization is working to stabilize its financial position while continuing to provide care across its network of hospitals and clinics in southern Oregon and northern California. The system is the largest health care provider in the region, serving several hundred thousand residents across multiple counties.
Gessel described the current environment as one shaped by persistent financial headwinds that have affected hospital systems across the country. He pointed to increased labor costs, supply expenses and shifts in reimbursement from public and private payers as ongoing factors influencing operations.
The update said Asante leadership is continuing efforts to align staffing, services and resources with current patient demand, while also focusing on efficiency measures across the organization. It did not announce specific cuts, closures or layoffs, but indicated that additional adjustments may be necessary as financial conditions evolve.
“As we move forward, our focus remains on maintaining access to care while ensuring long-term sustainability for the organization,” Gessel wrote in the message, according to a copy of the update.
The communication was distributed internally to employees and medical staff as part of routine systemwide updates regarding financial performance and operational planning.
Asante operates three hospitals and a large network of outpatient clinics and specialty services across the region. The health system serves patients in rural, suburban and urban communities throughout southern Oregon and parts of northern California.
Like many regional health systems, Asante has faced ongoing pressure from rising labor costs, including increased reliance on contract staffing in some areas, as well as higher prices for medical supplies and pharmaceuticals. At the same time, hospitals have reported ongoing challenges with reimbursement rates that have not kept pace with inflation and operational expenses.
Health systems across the United States have reported similar financial strain in recent years, particularly in rural regions where lower patient volumes can limit revenue while demand for emergency and specialty care remains steady or increases.
The update also referenced ongoing efforts within Asante to adjust service delivery models in response to changing patterns of care, including greater emphasis on outpatient services and consolidation of certain resources to reduce duplication. These types of changes have become more common in hospital systems nationally as care shifts away from inpatient settings.
Gessel said leadership is continuing to evaluate how best to balance financial sustainability with workforce stability and patient access. He noted that employees will continue to receive updates as planning efforts progress.
While the message did not detail new structural changes, it comes as Asante continues to implement previously announced adjustments within its system. Those changes have been tied in part to broader shifts in patient volume and financial performance across different facilities.
Asante officials said the organization remains focused on maintaining core health services across the region while adapting to what they described as a prolonged period of financial pressure affecting the broader health care industry.
“Make no mistake – the folks working in supporting roles in our non-clinical areas do valuable important work. Unfortunately, we will have to find more efficiencies in how this work is accomplished. I anticipate the ongoing headwinds, including the federal and state cuts to Medicaid, will result in 300 or more roles being eliminated in the next several months” the Asante President said in the statement.
You can read the entire letter sent by Asante to employees, here.
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