SULLIVAN COUNTY, NY — On June 17,  Garnet Health announced a restructuring that will impact 42 employees. This represents less than 1% of its total workforce systemwide and affects two outpatient services.

Due to consistent underutilization, the following services will no longer be offered:

• Outpatient Pulmonary Rehabilitation at Garnet Health Medical Center
• Outpatient Diabetes Services at Garnet Health Medical Center and Garnet Health Medical Center – Catskills

Additionally, Garnet Health Medical Center’s Trauma Program will transition from a Level II Trauma Center to a Level III Trauma Center designation to better reflect current utilization, a more sustainable model, and our community’s needs.

“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.”

Garnet Health also announced the departure of Garnet Health Doctors President Izabela Nowosielski, MD. Effective immediately, Jerry Dunlavey will assume the role of CEO of Garnet Health Doctors in addition to his current responsibilities as CEO of Garnet Health Medical Center – Catskills and VP of Operations for Garnet Health. Pamela Murphy, MD, will assume the role of President of Garnet Health Doctors in addition to her current responsibilities as Chief Medical Officer of Garnet Health.

“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, and severance packages have been provided to those who are eligible.

Garnet Health remains committed to regaining a stable financial future, one of growth and endurance, to safeguard the health and well-being of its communities for generations to come.