This month, Asante paid a $4 million penalty to Ashland after ending inpatient services at a local hospital.

Ashland residents are debating how the city should spend a $4 million penalty paid by Asante after the health system ended services it had agreed to maintain at Ashland Community Hospital.

The hospital system shuttered birthing and in-patient care in May, ending the facility’s classification as a general hospital. Asante purchased Ashland Community Hospital in 2013 with a promise to keep those services through 2028.

“Because that money originally was for the purpose of general hospital services, we feel that it shouldn’t go to, you know, upgrading a building or potholes,” said Lauri Hoagland of the Save Our Ashland Community Hospital Coalition. “This money deserves to be spent for healthcare.”

Coalition members, who regularly speak at Ashland City Council meetings, have proposed creating a seed fund to support future healthcare services.

Hoagland, a former nurse practitioner, said losing hospital services will disproportionately affect Ashland’s older residents.

“There is a little bit of concern that some of that money may need to be used in other places,” Hoagland said. “There’s a lot of things that need some help right now in our city, so having a slush fund is tricky.”

Ashland Mayor Tonya Graham said the city is still in the early stages of deciding how to use the money. She said her initial priority was ensuring the city received the payment.

“There’s a lot of change happening in the Ashland community right now and a lot of interesting ideas about how we move forward as a community, both in terms of healthcare and education and city services,” said Graham. “I’m looking forward to a robust conversation in this community about the very best way to invest this money.”

Asante has converted Ashland Community Hospital into a satellite campus of Rogue Regional Medical Center in Medford. The facility continues to provide emergency care and outpatient surgery.

Asante CEO Tom Gessel said costly regulations, declining patient volumes and low reimbursement rates from Medicare and Medicaid led to the decision to end inpatient and birthing services.

Hoagland said the coalition may also advocate creating a hospital district to increase local oversight and provide a dedicated source of funding for health care.

The Save Our Ashland Community Hospital Coalition will hold a public meeting June 24 at the Ashland library.

Justin Higginbottom is a reporter with Jefferson Public Radio. This story comes to you from the Northwest News Network, a collaboration between public media organizations in Oregon and Washington.

It is part of OPB’s broader effort to ensure that everyone in our region has access to quality journalism that informs, entertains and enriches their lives. To learn more, visit our journalism partnerships page.

News Source : https://www.opb.org/article/2026/06/22/ashland-asante-hospital-services-ending-fee/