Asante Says Hospitals Will Remain Open Amid Layoffs and Financial Cuts
The health system says emergency care will continue unchanged while it reviews services, pauses some hiring and works to find $50 million or more in savings.
MEDFORD, Ore. – Asante says its hospitals, emergency departments and immediate care locations will remain open as the Southern Oregon health system moves forward with layoffs, service reviews and a major cost-cutting effort.
In a newly released FAQ tied to a May 4 CEO update, Asante said it is not planning to sell, merge or close its three hospital campuses in Ashland, Medford and Grants Pass. The health system also said there are no planned changes to emergency departments or immediate care locations.
Asante operates full-service emergency departments at all three hospital campuses. Its immediate care locations in Medford and Grants Pass also remain open daily from 8 a.m. to 8 p.m.
The FAQ follows earlier internal communication that outlined significant financial concerns for the organization. Asante says it needs to identify $50 million or more in savings during 2026 in order to break even in 2027.
The health system says layoffs are part of that plan. According to the FAQ, Asante expects the reductions to affect 300 or more people in fiscal year 2026, representing about 5% to 6% of its workforce.
Asante says the cuts will focus heavily on non-clinical roles, though some clinical areas are also expected to be affected. The organization says most non-clinical hiring is being paused, while recruitment will continue for physicians, advanced practice providers, nurses and other clinical positions.
The health system says impacted employees will receive severance and separation benefits, along with outplacement support for those who qualify.
Asante previously eliminated about 400 roles in early 2024. In the FAQ, the organization says it has maintained lower staffing levels since those reductions, especially in business support areas, but that continued inflation and reimbursement challenges have created additional pressure.
The cost-cutting plan has already drawn criticism from the Oregon Nurses Association, which pushed back on Asante’s explanation and raised concerns about the impact of the reductions on workers and patient care. HiveWire Daily previously reported on the union’s response to Asante’s employee memo.
Asante points to several financial factors behind the current cuts, including lower reimbursement from Medicare and Medicaid, rising operating costs, a declining share of commercially insured patients in Southern Oregon and regulatory costs in Oregon.
According to Asante, Medicare reimbursed the health system at 79 cents for every dollar spent in fiscal year 2025, while Medicaid reimbursed 67 cents per dollar. The organization says Medicare, Medicaid and other government-covered patients make up about 75% of its patient population.
Asante also says Southern Oregon has a lower commercial insurance base than larger Oregon markets. The health system says its commercial payer mix is about 14% to 15%, compared with more than 30% for many hospitals in the Portland area.
The FAQ also addresses whether other hospital services may be reduced. Asante says some services will likely be impacted, and services with multiple locations may be consolidated. However, the organization says it hopes to avoid mass service reductions and will continue reviewing services with clinicians over the coming months.
Asante says there are no current plans to eliminate acute inpatient services at Rogue Regional Medical Center in Medford or Three Rivers Medical Center in Grants Pass. The health system previously announced plans affecting inpatient services in Ashland
The organization says any clinical service changes would include prior notice and communication with patients and employees.
Asante also says the pending criminal case involving a former Rogue Regional Medical Center employee and related civil settlements are not connected to the current financial decisions.
The full Asante FAQ is available at: https://www.asante.org/faq/
Cover image: Asante.org
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