TOWN OF WALLKILL – Noting a challenging healthcare climate, shrinking federal reimbursements and anticipated federal cuts to Medicaid, Garnet Health Medical Center announced late Tuesday that it was laying off 42 employees and eliminating the underutilized outpatients pulmonary rehabilitation service at Garnet Health Medical Center in the Town of Wallkill and outpatient diabetes services at both Garnet Health Center and Garnet Health Medical Center – Catskills.

The hospital network also announced it will transition from a Level II trauma center to Level III to better reflect current utilization, a more sustainable model, and the community’s needs.

“Without question, the healthcare climate continues to be challenging, with no immediate signs of reprieve,” said Garnet Health President and CEO Jonathan Schiller.

Garnet Health also announced “the departure” of Garnet Health Doctors President Dr. Izabela Nowosielski effective immediately. Jerry Dunlavy will assume the role of CEO of Garnet Health Doctors in addition to his current responsibility of CEO of Garnet Health Medical Center-Catskills and vice president of Operations for Garnet Health.

A statement from the hospital system did not provide details of Dr. Nowosielski’s departure – whether it was voluntary or if she was cut as a cost-saving measure.

“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.”

He said, “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.