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.

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.