New York system lays off 26, including management

Middletown, N.Y.-based Garnet Health has laid off 26 employees, about 1% of its workforce, and is restructuring some operations and services, according to a June 24 news release shared with Becker's.

The workforce cuts equate to about $4.6 million in salaries and benefits costs and affect staff in management, union and non-union positions. Affected staff have been notified and severance packages have been provided to those eligible, according to the health system. 

As part of the restructuring, inpatient palliative care services will no longer be provided by a team of dedicated palliative care specialists; Garnet Health Doctors will optimize the infectious disease practice to fit the needs of inpatients and reduce outpatient capacity due to lack of demand; and the health system will remove medical directors from three local post-acute care facilities.

In July 2023, the system laid off 49 employees, including 25 leaders, to offset operating losses. 

Garnet Health said it continues to be challenged with significant labor expenses, inflation on supplies and equipment, and low reimbursement rates. Also, while patient volumes are increasing, they have not returned to pre-pandemic levels.  

"Over the past year, Garnet Health has been on a journey of transformation and financial recovery. And, along the way, many very difficult decisions have had to be made," President and CEO Jonathan Schiller said. "We made a commitment to … pursue fiscal strategies that will restore Garnet Health to pre-pandemic financial strength. As healthcare advances, we must be able to leverage opportunities that provide growth and stability so we can continue to improve the health of our community by providing exceptional healthcare for generations to come."

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