Southern Oregon Healthcare Giant Asante Warns of More Than 300 Job Cuts as Losses Mount

MEDFORD, Ore. — Citing several factors, Asante noted that the organization is facing a cumulative operating loss of $16 million for the first half of the year and anticipates further job cuts of 300 or more roles.

Asante Mulls Further Job Cuts

In a memo to Asante’s 6,000 employees, President and CEO Tom Gessel noted that 5 main factors within Oregon’s healthcare system have resulted in accumulated losses, with a $12 million loss in March alone:

• Unsustainable inflation of our expenses (workforce, pharmaceuticals, supplies, utility prices, etc.).
• Unfunded mandates and over-regulation from Salem.
• Chronic underpayment from Medicaid and Medicare, including the federal and state cuts to Medicaid.
• Rising unemployment in the state (and shedding private sector jobs).
• Declining economic conditions in Oregon.

Nearly 70% of Asante’s collected revenue is reinvested in salaries and employee benefits. Gessel anticipates that the ongoing headwinds will result in 300+ roles being eliminated over the next several months, with a heavy focus on non-clinical roles, though some clinical areas may be affected.

The cuts are being considered as the healthcare giant pursues every cost-saving opportunity available to protect its core clinical services for the community.

Asante said it’s working to stabilize its financial position as health systems across the US report similar financial strain, particularly in rural regions with fewer patients.

Asante asks Southern Oregonians to stay informed via the new AsanteIMPACT platform and to reach out to Public Affairs for advocacy opportunities to protect the region’s healthcare safety net and to accept shared responsibility.