Asante to Pay Ashland $4M as Hospital Agreement Ends
The payment is tied to the planned conversion of Ashland Community Hospital into a satellite campus of Rogue Regional Medical Center.
SHLAND, Ore. – Asante is expected to pay the City of Ashland $4 million by June 18 as the two parties work to end an affiliation agreement connected to Ashland Community Hospital.
The City of Ashland announced Wednesday that Asante and the city plan to end the agreement after the hospital is converted. Details of the plan are still being finalized jointly, according to the city.
The development comes as Asante prepares to close inpatient services at Ashland Community Hospital and transition the facility into a satellite campus of Rogue Regional Medical Center in Medford. Asante says the transition is planned for May 20, contingent on state licensing approval.
Under the new model, Asante says the Ashland facility will continue offering a 24/7 emergency department, lab services, imaging and other outpatient services at its current Maple Street location. Imaging services are expected to continue, including X-ray, ultrasound, mammography, MRI and CT scans.
Asante says inpatient services are being consolidated at Rogue Regional Medical Center, about 11 miles away. The health system has said the Ashland facility will no longer operate under its current hospital license after the transition.
According to Asante’s FAQ page, the city sold the hospital in 2012 following years of financial losses. An affiliation agreement between Asante and the City of Ashland began in 2013, followed by a full merger into Asante in 2017. Asante says it assumed $8 million in city hospital debt and invested $10 million in the facility between 2014 and 2017.
Asante says it also assumed the underfunded Ashland defined benefit plan and has contributed $18 million since the acquisition to fully fund the plan for Asante Ashland employees.
The $4 million payment is connected to resolving that prior affiliation agreement. Asante says the parties plan to mutually terminate the agreement after the conversion process is complete, with the payment due to the city on or before June 18.
The City of Ashland said details are still being finalized. Ashland.news reported that Mayor Tonya Graham said the city has been in close contact with Asante about the payment since Asante first announced its plans to transition services at the hospital.
Graham told Ashland.news that once the transfer occurs, the city will begin a process to determine the best use of the $4 million.
The transition has raised broader questions in the Ashland community about access to care, hospital services and the future of the facility. Asante says patients who are affected by appointment, physician or provider changes will be contacted directly.
Patients who are pregnant and planning to deliver after the spring 2026 transition will need to identify a physician or provider with privileges at Rogue Regional Medical Center or another facility of their choice, according to Asante.
Asante says medical records from Ashland Community Hospital will remain with Asante. Patients may request records by calling 541-201-4070 or through Asante’s medical records page.
The Ashland transition is unfolding as Asante faces broader financial pressure across its Southern Oregon system. HiveWire Daily previously reported that Asante has released a separate FAQ addressing layoffs, service reviews and a plan to identify $50 million or more in savings.
Asante says the full Ashland Community Hospital FAQ is available on its website. https://www.asante.org/faq/
Cover image: Wikipedia
Recent News
