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Jefferson and Lehigh Valley Health Network Announce Merger

by Fred Pennic 12/20/2023 Leave a Comment

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Jefferson and Lehigh Valley Health Network Announce Merger

What You Should Know:

– Jefferson Health and Lehigh Valley Health Network (LVHN) have signed a non-binding letter of intent to merge into a leading integrated care delivery system.

– The combined entity, dubbed the “Jefferson Enterprise,” will boast a national research university, an expanded not-for-profit health plan, and a network of over 700 outpatient sites across eastern Pennsylvania and southern New Jersey.

Increases access to healthcare for urban and rural communities in eastern Pennsylvania and southern New Jersey

Both Jefferson and LVHN are mission-driven organizations with a shared commitment to population health management and quality-focused care. By joining forces, they aim to:

  • Improve health outcomes: Expand access to high-quality, affordable healthcare services for diverse communities, particularly addressing health disparities among underserved populations.
  • Strengthen clinical services: Combine their expertise in areas like oncology, neurology, orthopedics, and cardiovascular care, creating a comprehensive network of specialized services.
  • Boost research and development: Leverage the combined resources of Thomas Jefferson University to enhance clinical research and academic programs, fostering innovation and attracting top talent.
  • Optimize operational efficiency: Achieve cost savings and financial stability through better resource allocation and shared administrative functions.

“The health care landscape and our communities’ needs are changing; it is critical leading systems evolve and make investments in the future of care and wellness—growing and protecting access to enhanced, affordable, high-quality and innovative care, particularly for historically under-served patients,” said Joseph G. Cacchione, MD, Chief Executive Officer, Jefferson. “Combining Jefferson’s and LVHN’s resources will allow us to meet the changing needs of our diverse communities faster, more efficiently and more effectively. Together—with our combined network of resources and sites of care, managed care expertise, education and research capabilities—we will have the ability to make significant improvements to health outcomes and address health disparities in this region, and beyond, to the benefit our communities, patients, physicians, faculty, staff, students and health plan members.”

Next Steps

The definitive agreement is expected to be signed in 2024, pending regulatory approvals and closing conditions. Both Jefferson and LVHN will continue to operate independently until the merger is finalized. The leadership team for the Jefferson Enterprise will include members from both organizations, with Dr. Joseph G. Cacchione remaining CEO and Dr. Brian A. Nester serving as Executive Vice President/Chief Operating Officer and President of the legacy LVHN.

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Tagged With: Healthcare Mergers & Acquisitions

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