Garnet Health has announced a restructuring that will affect 42 employees, representing less than 1% of its workforce across the system. The changes include discontinuing outpatient pulmonary rehabilitation at Garnet Health Medical Center and outpatient diabetes services at both Garnet Health Medical Center and Garnet Health Medical Center – Catskills due to ongoing low usage.
The trauma program at Garnet Health Medical Center will also be downgraded from a Level II Trauma Center to a Level III Trauma Center. According to the organization, this transition aligns with current patient volume and is intended to create a more sustainable model for serving the community.
“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.”
Leadership changes were also announced. Izabela Nowosielski, MD, President of Garnet Health Doctors, will depart from her position effective immediately. Jerry Dunlavey will assume the role of CEO of Garnet Health Doctors in addition to his existing roles as CEO of Garnet Health Medical Center – Catskills and VP of Operations for Garnet Health. Pamela Murphy, MD, will take on the role of President of Garnet Health Doctors while continuing as Chief Medical Officer.
“I share this news with a deep and personal sadness,” said Schiller. “This restructuring and reduction in force is in no way about the performance of individuals. Instead, it is the direct result of diminishing federal reimbursement and cuts impacting Garnet Health’s current and projected financial sustainability. To keep operations at an optimum performance level, we had to carefully weigh what would make the biggest impact on the health system’s financial well-being while ensuring the smallest impact to our patients, their families and the communities we serve.”
All affected staff have been notified about their status; those eligible have received severance packages.
Garnet Health states it remains committed to restoring its financial stability so it can continue serving residents in Orange, Sullivan, and Ulster counties for years ahead.
For more information about programs or organizational details related to these changes or general services provided by Garnet Health throughout New York’s mid-Hudson and Catskills region—including over 4,000 professionals—visit garnethealth.org.
