Oregon Hospital Retreats Draw Concern—and Raise Questions

Willamette Week is in the middle of our most important annual fundraiser. As a local independent news outlet, we need your help.

Give today. Hold power to account.

A double punch of Oregon hospital facility closures drew condemnation Thursday from the Oregon Nurses Association, which cast the developments as “a devastating loss of critical health care access for Oregonians” that will strain an already overburdened health system and force patients to travel farther to seek care.

On Monday came the news that 73-bed Vibra Specialty Hospital of Portland would shutter, leaving Oregon without a long-term acute care hospital, a facility that generally cares for patients with complex needs after they have been stabilized and discharged from a traditional hospital.

Then, on Wednesday, came news from down the Interstate 5 corridor. Asante Ashland Community Hospital, a historic 49-bed inpatient facility, said it would eliminate inpatient services and a birthing center next year as it diminishes into a satellite campus of a larger hospital 11 miles up the freeway.

Under the plan, the hospital would retain its emergency department and outpatient operations. “We want to lean into what services at this facility the community is accessing, which is emergency services in the ED, outpatient surgeries and imaging,” Medford-based Asante said on a webpage, emphasizing that birth rates at the hospital have declined.

Echoing the rationales offered by Vibra leaders on Monday, the Asante CEO said the decision was a response to a worsening financial and regulatory landscape for Oregon hospitals.

“Bold, difficult decisions are needed to combat the headwinds,” Tom Gessel, president and CEO of Asante, said in a statement. “Legislation implemented in Salem has put hospitals in an untenable situation. This will only worsen with the future reductions to Medicaid funding. For smaller communities like ours, consolidating duplicative services are inevitable—especially those in such close proximity.”

The Asante System’s claims of money issues have, however, raised questions.

In 2023 and 2024—the two most recent fiscal years for which audited financial statements are available—the health system reported a collective overall profit of more than $240 million.

Meanwhile, financial data from the Oregon Health Authority says Asante Ashland Community Hospital itself made millions of dollars in 2024 and continued doing so through the first half of 2025, with operating margins that outpaced those of most hospitals in the state.

As The Lund Report earlier noted, Asante, in apparent contradiction to that information, is now asserting in external communications that its finances have gone south. A Wednesday news release from the health system included a statement from the CEO saying that “this past year, Ashland Community Hospital lost millions of dollars.” A separate FAQ on Asante’s website said the “facility is on pace to lose $7.3 million.”

An Asante spokesperson did not respond by deadline to a question from WW about the discrepancy between the information Asante is issuing and state data.

The state says its data comes from information self-reported by hospitals.

That wrinkle notwithstanding, the ONA frames the retreats, just the latest in a wave of Oregon heath care facility closures in recent months, as part of a broader crisis. The crisis, it says, is fueled by health care funding cuts under the Trump administration and the “increasing corporatization of health care, which prioritizes profit over patients and community needs.”