The signs are unmistakable: Oregon’s economic landscape is declining, and every sector is impacted. Rising costs, national workforce challenges and unfavorable business regulations coming from Salem are creating mounting headwinds for all businesses and industries in Oregon. The regulatory burden is real – and untenable.
The unfortunate reality is that hospitals bear the burden the most because when Oregon’s economy declines, it changes if, how and where people work, how they’re insured, how they seek care and how they pay for it. The shifts show up in our hospitals and clinics long before they hit the press.
A period of economic and regulatory uncertainty
All Oregon business, including health care, has been navigating the same pressures: five years and counting of inflation, over-the-top regulations and a post-pandemic workforce that has fundamentally changed. New statewide mandates are an additional layer of complexity at a time when stabilization is critical. Red flags are at every turn. The facts are unavoidable. Oregon Business and Industries has declared an economic emergency:
- Hospitals in Oregon are three-times more regulated than the U.S. median.
- Oregon’s GDP growth (gross domestic product, an economic measure) lags the overall U.S. GDP growth.
- Unemployment rate in Oregon has increased to 5.2%.
- Oregon lost 25,000 private and public sector jobs last year.
- Oregon’s population growth rate is among the lowest in the country, and for several years, there has been a net loss of income tax paying residents in the state.
- Oregon’s total effective business tax burden increased by 33% between 2019 and 2023.
- Oregon has dropped to 39th in CNBC’s ranking of America’s Top States for Business, falling 22 places in less than 10 years, including a fall of 11 places in 2024.
Even though Asante is a nonprofit, we face the same economic headwinds as any Oregon organization or business. Our decisions are guided by Mission and community impact for the people who rely on our services and employment. It’s essential to respond to these regional economic headwinds to protect essential services.
We should all be concerned about the state of health care. There are two significant changes on the horizon:
- Burdensome new state laws and regulations and
- The comprehensive One Big Beautiful Bill Act (HR 1).
These come with substantial unanswered questions about timing, implementation, decreased funding and increased long-term costs. So, while Asante and many other health care systems in Oregon are preparing for these implications, we still must weather the storm today and tomorrow. A “wait and see” approach is not an option. We need to act now for our patients and communities.
“When Oregon’s economy declines, the ripple hits hospitals quickly. Our costs rise as revenue softens. At the same time, the state has asked health care systems to take on new requirements that come with operational unknowns and financial burdens. We’re doing everything now to ensure we remain strong and sustainable,” says Heather Rowenhorst, Senior Vice President and Chief Financial Officer, Asante.
Impact on Asante and the community
Health care sustainability isn’t just a hospital issue. It affects the entire community: access to care, wait times, affordability, the long-term health of our region, and even our employment and livelihoods. These pressures shape the difficult decisions we’re making. Every decision we make is guided by Mission and community impact for the people who rely on our services and employment, but we must act to carefully evaluate resources, prioritize services and reduce duplication where that makes sense. We are stewards of crucial, limited resources.
Oregon’s business climate is shifting, and with that, we must too. Our Mission hasn’t changed, and we will keep adapting, innovating and advocating to ensure local health care remains local. We will continue to strengthen partnerships and invest in services our community needs. We will continue showing up for southern Oregon with the same dedication, compassion and reliability that have defined us from the beginning. We will not be silent; our region needs Asante to advocate for all southern Oregonians.
Other helpful resources
- Hospital Association of Oregon: Oregon Hospitals on the Brink.
- Oregon Business & Industry:
- CNBC: The Oregon Scorecard – Oregon Business & Industry.
- State of Oregon Employment Department: Employment in Oregon.
- Statesman Journal: Oregon has one of the smallest population growth changes in the country.
- Tax Foundation: 2022, 2023, 2024.
