Asante is expected to pay the City of Ashland $4 million by June 18 as the two parties work to end a long-running affiliation agreement tied to Ashland Community Hospital. The agreement comes as Asante prepares to close inpatient services in Ashland and convert the facility into a satellite campus of Rogue Regional Medical Center.

Asante says its hospitals, emergency departments and immediate care locations will remain open as the health system moves forward with layoffs and cost-cutting efforts. The organization says 300 or more employees may be affected in fiscal year 2026 as it works to address rising expenses, lower reimbursement rates and other financial pressures.

The Oregon Nurses Association responded Monday to Asante CEO Tom Gessel’s employee memo outlining financial losses and projected job cuts. The union criticized Asante executives over past and proposed reductions, challenged the health system’s explanation for its financial strain, and called for leadership to work with nurses and techs on solutions.

Asante President and CEO Tom Gessel told employees that the health system is facing a $16 million operating loss for the first half of the fiscal year and could face a $50 million shortfall in 2027 without action. The memo says Asante expects to eliminate 300 or more roles while reviewing costs, services, and operations.

Asante has renewed multi-year agreements with Vista Pathology, Radia and Southern Oregon Anesthesia to continue providing specialized medical services across its facilities.

Sky Lakes Medical Center and Klamath Falls Police continue to expand the region’s first Hospital Resource Officer program, with veteran officer Jeff Hutcheson serving full-time on campus to improve safety and response coordination.