• Wed. May 29th, 2024

Jefferson and Lehigh Valley Health Network complete merger agreement

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May 15, 2024

Thomas Jefferson University has officially completed its acquisition of Lehigh Valley Health Network, solidifying a deal that will result in the creation of a 30-hospital system based in Philadelphia. This new system will encompass a broad geographical area, extending from South Jersey to the Scranton region, and will rank among the top 15 nationwide in terms of revenue, according to the two nonprofit health systems involved.

The acquisition is expected to be finalized this summer, pending necessary regulatory approvals. Initially announced in December, the CEOs of Jefferson and Lehigh Valley see this merger as an opportunity to enhance Jefferson’s health insurance operations in a manner that enhances care efficiency and quality. They emphasized that their goal is not simply to cut costs but to provide improved services to their communities.

With a combined workforce of 65,000 individuals and 700 locations, the merged systems anticipate operating with a revenue of $14 billion in fiscal 2023. Following the completion of the acquisition, Joseph G. Cacchione will continue to serve as CEO of the combined organization, while Brian A. Nester will transition from his role as CEO of Lehigh Valley to become Jefferson’s chief operating officer and president of the former Lehigh Valley businesses.

Additionally, Baligh R. Yehia, the current president of Jefferson health businesses, will take on the position of chief transformation officer at Jefferson while maintaining his role as president of the legacy Jefferson Health operations. A number of Lehigh Valley board members will also join the Thomas Jefferson University board as part of the arrangement.

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