Garnet Health Announces Layoffs and Service Reductions Amid Financial Struggles

June 18, 2025 - 10:43

TOWN OF WALLKILL – In response to an increasingly difficult healthcare environment, Garnet Health Medical Center has announced significant staffing reductions and the discontinuation of certain services. Late Tuesday, the medical center revealed that it would be laying off 42 employees as part of a broader strategy to address financial challenges.

The decision comes in light of shrinking federal reimbursements and anticipated cuts to Medicaid, which are expected to further strain the organization’s resources. As part of these changes, Garnet Health will also be eliminating its outpatient pulmonary rehabilitation service, which has seen a decline in utilization. Additionally, outpatient diabetes services are set to be cut.

These adjustments reflect the ongoing pressures faced by healthcare providers in the current economic landscape, prompting Garnet Health to reassess its operational strategies to ensure sustainability. The affected employees and patients will be provided with support as the organization navigates these transitions.