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Jefferson Health plans $530 million in capital projects in Philly and at Lehigh Valley Health

Highlights include an expansion of the emergency department at Thomas Jefferson University Hospital.

Thomas Jefferson University, headquartered in Philadelphia, outlined $530 million in capital spending projects that it will pay for with part of a $1.1 billion debt offering.
Thomas Jefferson University, headquartered in Philadelphia, outlined $530 million in capital spending projects that it will pay for with part of a $1.1 billion debt offering.Read moreThomas Jefferson University

Jefferson Health is planning to expand the emergency department at its flagship Center City hospital as part of $530 million in capital projects outlined in a bond offering statement issued this week. It also plans to enhance its immune-therapy cancer treatment services.

Much of the proceeds from the $1.1 billion sale of bonds will be used to refinance existing debt at Jefferson and its recently acquired Lehigh Valley Health Network.

The plans in Philadelphia include the expansion and renovation of the busy emergency department at Thomas Jefferson University Hospital. That project is part of Jefferson’s “Center City optimization” effort that will “transform and modernize TJUH’s hospital facilities.” Jefferson did not provide additional details in the bond document.

At the former Einstein Healthcare Network, which Jefferson acquired in 2021, the current medical record system will be replaced with Epic, the same systems used at other Jefferson facilities. Jefferson did not say when that would happen.

Jefferson, a nonprofit with more than $14 billion in annual revenue, also wants to create a cellular therapy division to expand its CAR-T and bone marrow transplant businesses, the bond offering said. That puts Jefferson in sharper competition with Penn Medicine, where scientist Carl June played a central part in developing the treatments that harness to body’s immune system to fight cancer.

Jefferson offers all commercial CAR-T therapies for blood cancer and melanoma, a spokesperson said. It also participates in clinical trials for solid tumors, such as breast, lung, and colon cancers.

The bond statement disclosed that Jefferson committed to spend $900 million on Lehigh Valley Health facilities over three years, mainly on projects already planned by Lehigh Valley’s board and management. The plans covered in the bond offering account for $184 million of the total commitment, Jefferson said.

Jefferson completed the Lehigh Valley acquisition Aug. 1, creating a 32-hospital system in eastern Pennsylvania and South Jersey.

The Lehigh Valley projects include:

  1. The creation of a Mother Baby Unit with 13 postpartum beds, eight nursery bassinets, and six labor-and-delivery rooms at Lehigh Valley Hospital — Pocono in East Stroudsburg. This is expected to open in April 2026.

  2. The construction of a three-story building for an emergency department expansion at Lehigh Valley Hospital — Muhlenberg in Bethlehem. The ED will have 79 new beds and a heliport on the roof. Completion is expected in October 2026.

  3. Jefferson plans to purchase the medical office building next to Lehigh Valley’s micro-hospital that opened early this year in Gilbertsville. Lehigh Valley had initially leased the building from the developer.