Merkley: Closure of Ashland Community Hospital’s Birthing Center and Inpatient Care Will Negatively Impact Southwestern Oregonians

Washington, D.C. - Oregon's U.S. Senator Jeff Merkley said today he is concerned about the planned closure of labor and delivery services and inpatient care at Ashland Community Hospital and called on Asante Health System to support families and clinicians affected by the decision.

Earlier this month, Asante announced it was planning to close the hospital's birthing center and convert it into a satellite campus of Rogue Regional Medical Center in Medford, as well as ending inpatient care.

"I anticipate that this decision will hurt the health and safety of individuals seeking inpatient care, as well as expectant mothers and newborns, who will no longer have local access to care," Merkley cautioned in his letter to Asante President & CEO Tom Gessel.

While Merkley deeply understands the numerous economic challenges facing rural labor and delivery units across Oregon-including low volumes of births, workforce shortages, challenging reimbursement rates, and the changing health care landscape brought on by the passage of Republicans' 'Big, Ugly' betrayal of a budget bill-he has also seen the negative impacts of closing labor and delivery units and the shuttering of inpatient care have on Oregon families. During this transition time, he is calling for Asante to support the families, clinicians, and communities it serves.

"Ashland Community Hospital has served Southwest Oregon for almost 120 years, and the closure of its birthing center and inpatient hospital could force patients to travel long distances to receive routine and emergency obstetric care as well as treatment for severe conditions and major surgeries. In addition, this closure would likely create an undue burden for many families, especially those with limited funds, limited transportation, or complex medical needs, and it may cause them to bypass necessary care," he continued.

Previously, Merkley led his Oregon congressional delegation colleagues to oppose the closure of labor and delivery services by Providence Health & Services and Samaritan Health Services at hospitals along the Oregon coast.

"I expect these challenges will only get worse given the Republican reconciliation bill that gutted the health care system by $1 trillion, thereby making it harder for rural and community hospitals to survive. As a result of these cuts, rural and community hospitals will be forced into impossible choices and unpopular operational decisions, like cutting labor and delivery services and inpatient care, in order to keep their doors open," he concluded.

Full text of the letter can be found by clicking here and below:

Dear Mr. Gessel:

I write today to express concerns regarding Asante's plan to close the birthing center and stop inpatient care at Ashland Community Hospital by May 2026. I anticipate that this decision will hurt the health and safety of individuals seeking inpatient care, as well as expectant mothers and newborns, who will no longer have local access to care.

Ashland Community Hospital has served Southwest Oregon for almost 120 years, and the closure of its birthing center and inpatient hospital could force patients to travel long distances to receive routine and emergency obstetric care as well as treatment for severe conditions and major surgeries. In addition, this closure would likely create an undue burden for many families, especially those with limited funds, limited transportation, or complex medical needs, and it may cause them to bypass necessary care.

I am aware of the economic challenges that are squeezing the finances of labor and delivery units across Oregon. Low birth volumes and challenging reimbursement rates driven by inflation, workforce shortages, and rising supply costs make it difficult for hospitals to continue offering birthing services. In addition, I recognize the financial difficulties surrounding inpatient care, including a decrease in Medicare inpatient payment rates and delays in discharging patients to post-acute facilities, which are driven by prior authorization requirements and can contribute to longer and more expensive inpatient stays.

I expect these challenges will only get worse given the Republican reconciliation bill that gutted the health care system by $1 trillion, thereby making it harder for rural and community hospitals to survive. As a result of these cuts, rural and community hospitals will be forced into impossible choices and unpopular operational decisions, like cutting labor and delivery services and inpatient care, in order to keep their doors open.

However, I have also seen the negative impacts of hospitals closing their birthing centers and shuttering inpatient care on Oregon patients, particularly in rural communities. Minutes matter for parents and newborns, and health care providers across Oregon have reported seeing more patients than ever before who are sicker and more complex. These cuts will harm caregivers and the health and safety of communities in Southwestern Oregon, leaving patients and families with fewer choices, longer waits, and worse healthcare.

As Asante closes down the birthing center and stops providing inpatient care at Ashland Community Hospital, I urge you to assist expectant families who need to find alternative options for safe maternal health care and patients who are seeking inpatient care. In addition, I urge you to continue to provide meaningful support to the physicians, nurses, and other clinicians whose jobs will be affected by the halt in obstetrics care and inpatient surgery at Ashland Community Hospital. Finally, I urge Asante to engage in a transparent process with the community it serves as it winds down local obstetrics care and inpatient surgery.

Thank you for your attention to this letter and for your commitment to serving the health care needs of Oregon families.

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