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Middletown is okay. There are certainly areas I wouldn't want to be out at during the night, such as some locations around North Street. But it is better than Newburgh although I would never want to live there myself. Fewer murders, less gang violence, safer to walk around. The one advantage Newburgh does have is its gorgeous scenery of the river whereas I find Middletown to be a bit ugly. The good news is the hospital you will be working out is in the town of Wallkill I believe. It's in the Middletown area but not technically part of the city, although that whole are quite often is just referred to as "Middletown" regardless of specific location.
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