Hospital has served community since 1907; city sold it to Asante in 2013 — Asante president: ‘This transition is the only option’ 

By Holly Dillemuth, Ashland.news

Asante Ashland Community Hospital’s birthing center and inpatient surgery will close by spring 2026, leaving only the emergency room and outpatient services, according to plans shared with staff Wednesday, Dec. 3, by Asante, the Medford-based health care provider serving Southern Oregon and Northern California, sources familiar with Asante’s plans have told Ashland.news. 

Asante is calling it a transition from a 49-bed community hospital to a satellite campus of Rogue Regional Medical Center in Medford. In the coming months, Ashland’s small inpatient hospital will close its license and transition to become an extension of Rogue Regional based in Medford, according to a news release. 

“A community that loses its hospital, I mean I think will be a huge adjustment in … the way that we talk about what we offer to people who think about coming to the community,” state Rep. Pam Marsh (D-Ashland) told Ashland.news Wednesday.

“I think it’s a huge blow,” she added. “We are a community that has really treasured our little community hospital – That’s a place where families have histories with births that initiated a lifelong relationship with Asante.”

Some services will continue at the current location on Maple Street, including the 24/7 emergency department and key outpatient services, including outpatient surgery and lab and imaging services. 

Asante states that all employees in departments remaining at the facility will continue their existing roles. Staff within impacted departments will be offered a similar position at Asante’s other hospitals in Medford and Grants Pass. 

Once this transition takes place, according to Asante, patients who require an overnight inpatient stay or obstetrics services will be transferred to Rogue Regional Medical Center, just over 11 miles away in south Medford, which includes a level II trauma center, heart, vascular and stroke care; women and children’s services, cancer care, orthopedics and gastroenterology services.

Asante states that this new designation will improve the facility’s clinical and operational stability, protecting critical access to the most utilized services.

“There are significant and growing challenges for health care organizations across the country. The financial and regulatory landscape for Oregon hospitals is worsening,” says Tom Gessel, President and CEO of Asante in a news release. “This past year, Ashland Community Hospital lost millions of dollars. Operating the hospital with inpatient and obstetrics services is no longer viable, and duplicating underutilized services with Rogue Regional just 11 miles away is not the best use of limited health care resources in the valley.”

Over the last year, Ashland Community Hospital has seen an increase in outpatient and emergency department visits, according to the release. While the demand for these services continues to go up, the hospital says it has sustained a significant decline in birth rates and inpatient admissions, which is disputed by some hospital employees. 

The hospital states only 37 births from Ashland residents took place at the hospital in 2025.

Hospital employees in the birth center say that the overall number of births at the hospital are 210 in the last year, according to Jennifer Mosher, a birthing center nurse.

“Bold, difficult decisions are needed to combat the headwinds. Legislation implemented in Salem has put hospitals in an untenable situation,” Gessel, the Asante CEO, said. “This will only worsen with the future reductions to Medicaid funding. For smaller communities like ours, consolidating duplicative services are inevitable – especially those in such close proximity. What this means for the Ashland campus is to maintain emergency and outpatient services being used most by residents, while consolidating services that are underutilized. Asante is a not-for-profit organization and the largest health care provider in the region employing 226 physicians. As stewards of vital health care resources, this transition is the only option.”

A petition has been started by a hospital employee to keep the entire facility open.

Kim Prowell, one of more than 20 birthing center employees, posted the petition online Wednesday morning. (To see the petition, click here.) Within minutes, there were nearly two dozen signatures, with the goal of reaching 15,000.

“Currently, there is a looming threat to close the birth center and inpatient services of the Asante Ashland Community Hospital,” the petition states. “This would not only disrupt the essential services that thousands of individuals rely on but also displace the dreams and hopes of many families who have trusted this institution during their most vulnerable times. The birth center, in particular, symbolizes new beginnings and life — a service that is irreplaceable and foundational to any thriving community.

“Instead of dismantling this essential service, we should focus on revamping and reinvesting in it,” the petition adds. “This could involve collaborating with local governments, healthcare networks, and private entities to create sustainable financial models that ensure the hospital’s financial health while maintaining its invaluable services. Additionally, extending outreach programs and partnerships with surrounding rural areas could increase patient intake and revenue.”

In coming days and weeks, Asante will host several meetings with impacted employees, medical staff and leaders to answer questions and provide additional resources, according to a letter from Gessel to employees obtained by Ashland.news.

This developing story will be updated as more information becomes available.

If you are an employee of Asante Ashland Community Hospital or have a story to share about time spent there and want to share it with the community, please reach Ashland.news reporter Holly Dillemuth at[email protected].

Dec. 3: Reference to “medical surgery” changed to “inpatient surgery” to clarify that outpatient surgery will still be available. Also added links to Asante FAQ’s and the 2013 sale agreement.