Health Care Company Announces Layoffs in the Hudson Valley

One of New York's biggest health care companies has announced that they are cutting select services and laying off 40+ employees in Middletown, NY.

Unfortunately, another New York-based company has made the dreaded "restructuring plan" announcement, and this time the plan will affect health care workers and the services they provide in Orange County, NY.

Garnet Health's Restructuring Plan

The Garnet Health system, based in Middletown, NY, has announced that it has begun its restructuring plan that will include layoffs, changes in leadership, and the closure of select outpatient services. The health system made the announcement earlier this week, stating the moves are necessary to remain financially sustainable, according to the Becker's Hospital Review website.

Employee Layoffs at Garnet Health

According to the new plan, 42 Garnet Health employees will be let go (which the company highlighted as less than 1% of its workforce), and two of its outpatient services will be discontinued due to consistent underutilization.

Garnet Health will close its outpatient pulmonary rehabilitation at Garnet Health Medical Center in Middletown, NY, and its outpatient diabetes services at both the Middletown location and at Garnet Health Medical Center-Catskills in Harris, NY.

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Jonathan Schiller Garnett, Health President and CEO, talked about the cuts in a press release, stating,

"Without question, the healthcare climate continues to be challenging, with no immediate signs of reprieve. And due to shrinking federal reimbursements, as well as additional anticipated federal cuts to the Medicaid program, we are faced once again with very difficult decisions."

 

Changes at Garnet Health in Middletown, NY

The restructuring plan will also affect Garnet Health Medical Center’s trauma program as it will transition from a Level II trauma center to a Level III designation, which the company says will better align with its long-term sustainability goals and the community’s needs. The plan will also include a change in leadership as Jerry Dunlavey will assume the role of CEO of Garnet Health Doctors, and Pamela Murphy, MD, has been named the new president of Garnet Health Doctors, replacing Izabela Nowosielski, MD, who recently stepped down.