New York City-based Montefiore Health System and Garnet Health have signed a letter of intent for Garnet to join the academic health system through a strategic affiliation.
Garnet Health, a three-hospital system headquartered in Middletown, N.Y., serves more than 500,000 residents across New York’s mid-Hudson and Catskills regions.
The proposed transaction would expand Montefiore’s presence in the Hudson Valley and strengthen Garnet Health’s clinical services, specialty care offerings and long-term sustainability.
Montefiore, which operates 10 hospitals and more than 200 outpatient sites, described the deal as a natural fit.
“Montefiore Health System knows what it takes to deliver excellent care at a community level while offering access to world-class, academic medical expertise,” Philip Ozuah, MD, PhD, president and CEO of Montefiore Einstein, said. “We look forward to the opportunity to welcome Garnet Health into the Montefiore family.”
Garnet Health has faced mounting financial pressures and recently implemented layoffs and operational restructuring as part of broader efforts to mitigate operating losses. In June, the system laid off 42 employees and closed underutilized outpatient services. Some leadership positions were also realigned amid ongoing reimbursement challenges.
This deal marks another strategic expansion for Montefiore, which has continued to grow its academic and clinical footprint in recent years. For Garnet Health, the affiliation could provide stability and scale amid a turbulent financial environment.
The health systems aim to finalize a definitive agreement by the end of 2025, pending due diligence and regulatory approvals.
If approved, the deal would add three hospitals and more than 850 medical staff members to Montefiore’s network.
