Jefferson and Lehigh Valley Health Network Announce Merger

Jefferson Health and Lehigh Valley Health Network Signs Merger Agreement: A $14 Billion Healthcare Transformation

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Philadelphia’s Jefferson Health and Lehigh Valley Health Network (LVHN) have embarked on a monumental journey towards a transformative merger, poised to reshape the healthcare landscape in Eastern Pennsylvania and Southern New Jersey. The definitive agreement, signed by the leadership of both organizations, marks a significant milestone in their shared vision of creating a leading integrated academic healthcare system.

At the heart of this merger is a commitment to enhancing access to high-quality and affordable care for communities across the region. With a combined workforce of over 65,000 employees, 30 hospitals, and more than 700 sites of care, the unified entity is poised to become one of the top 15 not-for-profit health systems in the United States. This unprecedented scale promises to unlock synergies and efficiencies that will drive innovation, improve patient outcomes, and address longstanding health inequities.

Joseph G. Cacchione, MD, CEO of Jefferson Health, expressed enthusiasm for the merger, highlighting the transformative potential it holds for patients, healthcare professionals, and communities alike. He emphasized the integrated operating model that the combined organization will adopt, which will prioritize value-based care, continuous research, and innovation. By leveraging their collective expertise and resources, Jefferson and LVHN aim to provide unparalleled access to a comprehensive array of healthcare services, including clinical trials, specialist care, and population health management.

Brian A. Nester, DO, MBA, President and CEO of LVHN, echoed Dr. Cacchione’s sentiments, underscoring the shared commitment of both organizations to improving community health and well-being. He emphasized Jefferson’s alignment with LVHN’s values and mission, emphasizing the potential for the merger to accelerate progress in key areas such as clinical research, education, and health plan offerings.

The merger is expected to be finalized later this summer, pending final reviews and execution of closing conditions. Upon completion, Dr. Cacchione will continue to serve as CEO of the Jefferson enterprise, while Dr. Nester will assume the role of Executive Vice President/Chief Operating Officer of the Jefferson enterprise and President of the legacy LVHN. Dr. Baligh R. Yehia will serve as Executive Vice President/Chief Transformation Officer of the Jefferson enterprise and President of the legacy Jefferson Health.

The integrated system will operate under a unified governance structure, with a Board of Trustees and leadership team comprised of members from both systems. This collaborative approach underscores the commitment of both organizations to ensuring a smooth transition and continuity of care for patients and communities.

As the healthcare landscape continues to evolve, Jefferson Health and LVHN are poised to lead the way, driving innovation, improving health outcomes, and advancing equity in healthcare delivery. Through their combined efforts, they aim to create a brighter and healthier future for all those they serve.

The merger between Jefferson Health and LVHN represents a landmark moment in the history of healthcare in Eastern Pennsylvania and Southern New Jersey. With their shared commitment to excellence and innovation, these two organizations are poised to redefine the future of healthcare delivery, setting a new standard for quality, access, and patient-centered care.

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About

Jefferson Health

Thomas Jefferson University Hospitals Inc., commonly known as Jefferson Health, stands as a prominent multi-state non-profit health system with its flagship hospital nestled in Center City Philadelphia. Established in 1995, Jefferson Health has evolved to become a cornerstone in healthcare delivery, tightly integrated with Thomas Jefferson University as its teaching hospitals.

Under the leadership of CEO Joseph G. Cacchione, MD, Jefferson Health has seen significant growth and mergers over the years, including the incorporation of Methodist Hospital in 1996 and a subsequent merger with Aria Health in 2016. Notably, in 2018, Jefferson Health finalized a merger with the Einstein Healthcare Network, expanding its reach to create an extensive 18-hospital system with a substantial revenue of $5.9 billion.

The system’s hospitals, including Thomas Jefferson University Hospital, Jefferson Methodist Hospital, and Jefferson Abington Hospital, among others, serve diverse communities across multiple states. Additionally, Jefferson Health boasts specialized facilities such as Magee Rehabilitation Hospital and Rothman Orthopaedic Specialty Hospital, ensuring comprehensive care across various medical needs.

With over 200 specialized centers, programs, departments, and divisions, Jefferson Health is committed to providing top-notch medical services. Their Office of Human Research and Division of Clinical Trials Support underscores their dedication to advancing medical knowledge and participating in formal clinical trials.

Moreover, Jefferson Health’s association with the Philadelphia Eagles NFL team, with five of its seven physicians hailing from their staff, speaks volumes about its reputation and expertise in sports medicine. Notably, Alexander Vaccaro’s presidency at the Rothman Institute further solidifies Jefferson Health’s position as a leader in orthopedic care.

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About

Lehigh Valley Health Network

Lehigh Valley Health Network (LVHN) stands as a cornerstone of healthcare in the Lehigh Valley metropolitan region of eastern Pennsylvania. With its roots tracing back to Allentown Hospital’s inception in 1899, LVHN has emerged as a leading healthcare network, serving the diverse medical needs of communities across Northeastern Pennsylvania.

At the heart of LVHN lies its flagship hospital, Lehigh Valley Hospital–Cedar Crest, situated on Cedar Crest Boulevard in Allentown. Recognized as the third-largest hospital in Pennsylvania as of 2023, this institution plays a pivotal role in providing advanced medical care. Notably, it houses the state’s first Level One Trauma Center, catering to the critical healthcare needs of the region. Additionally, LVHN operates several other hospitals and trauma centers across different counties, such as Lehigh Valley Hospital–17th Street, Lehigh Valley Hospital–Muhlenberg, Lehigh Valley Hospital–Hazleton, Lehigh Valley Hospital–Pocono, Lehigh Valley Hospital–Hecktown Oaks, and Lehigh Valley Hospital–Schuylkill, among others. These facilities ensure that residents have access to quality healthcare close to home, with specialized services ranging from trauma care to cancer treatment.

In 2015, LVHN embarked on a significant milestone by merging with Pocono Health System, which culminated in the formation of LVHN-Pocono. This strategic move expanded LVHN’s reach, allowing it to extend its exceptional care to the Pocono region. Moreover, LVHN’s commitment to community welfare is evident through its philanthropic endeavors, including free flu shots and dental care for children, showcasing its dedication to improving public health beyond hospital walls.

In December 2023, LVHN made headlines with its announcement of plans to be acquired by Jefferson Health, marking a new chapter in its evolution. The merger aimed to leverage Jefferson Health’s expertise and resources to enhance healthcare delivery across Pennsylvania, while solidifying LVHN’s position as a vital player in the state’s healthcare landscape.

As LVHN continues to expand its footprint and enhance its services, it remains steadfast in its mission to provide compassionate, innovative, and accessible healthcare to the communities it serves. From emergency care to specialized treatments, LVHN’s commitment to excellence resonates throughout its network, ensuring that patients receive the highest standard of care when they need it most.

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