Garnet Health Announces 42 Layoffs and Critical Program Cuts in Orange and Sullivan Counties

In a press release issued this week, Garnet Health said it is cutting 42 positions and scaling back select outpatient services in an effort to manage ongoing financial strains.
Garnet Health announced on June 17 it will cut critical healthcare programs at the Garnet Health Medical Center locations in Middletown and Harris and will lay off 42 employees.

The Mid-Hudson healthcare system announced it will no longer offer its outpatient diabetes services at Garnet Health Medical Center in Middletown and Garnet Health Medical Center – Catskills in Harris and its outpatient pulmonary rehabilitation at Garnet Health Medical Center.

The Middletown location’s Trauma Program will also transition from a Level 2 Trauma center to a Level 3 Trauma Center to “better reflect current utilization, a more sustainable model, and our community’s needs,” according to Garnet Health.

“Without question, the healthcare climate continues to be challenging, with no immediate signs of reprieve,” said Jonathan Schiller, President & CEO of Garnet Health. “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.”

This announcement comes as Garnet Health continues to scale back service availability in the Catskills region. In June 2024, Garnet Health cut its inpatient palliative care services and laid off 26 employees, citing that the restructuring would save approximately $4.6 million in salaries and benefits.

Headquartered in Middletown, Garnet Health provides healthcare to approximately 500,000 residents in Orange, Sullivan and Ulster counties and employs more than 4,000 staff members. In a June 17 press statement, Garnet Health said that the most recent wave of layoffs represents “less than 1% of its total workforce systemwide and affects two outpatient services.”

Sullivan County Health Chair and District 5 Legislator, Cat Scott, said that these abrupt decisions are “very concerning” for county residents.

“We have an aging population. We have a population that does not have economic advantages or privilege, so traveling further for healthcare is not necessarily an option or it is a hardship,” said Scott. “These are folks who can’t take the day off. They don’t have unlimited paid time off to go further for healthcare.”

While Garnet Health stated in a press statement that these programs were being cut due to “consistent underutilization,” Scott said that she recently had a conversation with a practitioner who refers several people a week to Garnet Health’s diabetic outpatient trainings.

“[The service] helps diabetics learn how to manage their diabetes, which cuts down on emergency room trips and further medical interventions and medications,” said Scott.
Sullivan County resident Kenneth Walter expressed his frustration with Garnet Health’s service cuts at the June 19 legislative meeting.

“You, the legislature, have to get off your duff and yell and scream. [Sullivan County is] being more and more a medical desert because of [Garnet Health’s] decisions,” said Walter. “They do this stuff behind our back and it shouldn’t be.”

Radio Catskill reached out to Garnet Health and  Marcy Manheim, the hospital’s spokesperson, said via email, “At this time, we are respectfully declining interviews.”

This is a developing story and will be updated as more information is confirmed.

Note: Garnet Health is a financial supporter of Radio Catskill.
Image: Garnet Health Medical Center in Middletown, NY. (Photo Credit: Garnet Health)