Thomas Jefferson University had a $90.5 million operating loss in first quarter of fiscal 2025
The results included Lehigh Valley Health Network, which Jefferson acquired on Aug. 1.
Thomas Jefferson University, which includes Lehigh Valley Health Network since Aug. 1, had an operating loss of $90.5 million in the three months ended Sept. 30, the Philadelphia-based nonprofit health system told bondholders Tuesday. In the same period a year ago, Jefferson and Lehigh Valley had a combined $84.2 million loss.
Jefferson’s operating loss for its legacy business in the quarter rose to $77.6 million from $48 million a year ago. At Lehigh Valley, the quarterly loss fell to $13 million from $36 million last year.
The financial report came just a few days after Jefferson announced that it would postpone annual raises for 42,000 Philadelphia-area employees from January to July.
Here are details from the latest financial report:
Revenue: The 32-hospital system, which stretches from northeastern Pennsylvania to South Jersey, reported $3.73 billion in revenue, up 10% from $3.39 billion a year ago. Lehigh Valley’s revenue was up 12%, while Jefferson’s climbed 9%, according Jefferson’s municipal bond filing.
Expenses: Jefferson reported a notable jump in the insurance claims paid by its health insurance business. Jefferson Health Plans’ medical claims rose 14% to $441 million. On the other side of the ledger, health insurance premiums fell 7% to $512 million. Most of Jefferson’s insurance business is Pennsylvania Medicaid, which this year received a rate cut. This has put all Medicaid managed-care plans in the state under pressure.
Notable: Jefferson expects to complete this week the sale of more than $1 billion worth of bonds in a transaction that will bring legacy Lehigh Valley under Jefferson’s debt structure. The sale includes $542 million in new debt that will be used for capital projects at Jefferson and Lehigh Valley.