Ashland (Ore.) Community Hospital, part of Medford, Ore.-based Asante Health, will transition to a satellite campus by spring 2026, ending its inpatient and obstetrics services.
Six things to know:
1. The hospital will close its inpatient license and become a satellite campus of Rogue Regional Medical Center in Medford, according to a Dec. 3 news release from the health system.
2. The 24/7 emergency department and outpatient services, including surgery, laboratory and imaging, will continue operating at Ashland Community Hospital.
3. The hospital has reported an increase in outpatient and emergency department visits over the past year, alongside a “significant decline” in inpatient admissions and birth rates. In 2025, there were 37 births from Ashland residents at the hospital. After the transition, patients requiring obstetrics care or overnight inpatient stays will be transferred to Rogue Regional.
4. Employees in departments that remain at the Ashland campus will continue in their current roles. Staff in affected departments will be offered similar positions at other Asante hospitals.
5. Ashland Community Hospital released a strategic plan in December 2024 prioritizing investments in surgical and emergency department services.
6. The financial and regulatory landscape for Oregon hospitals is worsening, according to the hospital’s website. Contributing factors include demographic shifts in the community, the One Big Beautiful Bill Act, higher hospital licensing fees, expiration of ACA tax credits and Oregon’s 2023 hospital staffing law.
“There are significant and growing challenges for health care organizations across the country. The financial and regulatory landscape for Oregon hospitals is worsening,” Asante President and CEO Tom Gessel said in the 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.
“Bold, difficult decisions are needed to combat the headwinds. Legislation implemented in Salem has put hospitals in an untenable situation. 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.”
Becker’s has reached out to Asante to clarify the potential impact on staff members and will update this story if more information becomes available.
