Tuesday night the Ashland City Council is expected to vote on a Merger between Asante Health Systems and Ashland Community Hospital…
The ACH Foundation and hospital board have already given the merger their approvals. The city council is the last decision maker in the process.
A letter of intent spells out the details of a proposal in which Asante would purchase ACH and take over the financially struggling hospital’s debt and operating losses.
The council’s decision primarily focuses on the real estate portion of the deal, since the city owns the hospital’s property.
In the proposal, Asante commits to making 10 million dollars in capitol improvements in the first three yeas. It says it will retain as many existing employees as possible. It also agrees to operate as a General Hospital for 15 years, or pay the city millions in stiff penalties.
While those for the merger say it makes financial sense, some Ashland residents say they fear a corporate sale will put an end to the hospital’s community feel.
If the council accepts the proposal, formal sale documents will be drawn and approved. The city council estimates it could take 90 days to complete a sale.
Asante currently owns Rogue Valley Medical in Medford and Three Rivers in Grants Pass.
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