Jefferson and Lehigh Valley Health Network have finalized a merger agreement, creating a 30-hospital system
The deal creating a 30-hospital system, one of the largest in the country, is expected to be completed this summer.
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Thomas Jefferson University has finalized its agreement to acquire Lehigh Valley Health Network in a deal that will create a 30-hospital system, headquartered in Philadelphia, that stretches from South Jersey to the Scranton area. It will be among the top 15 nationwide for revenue, the two nonprofit health systems said Wednesday.
Jefferson and Lehigh Valley said they expect to complete the deal this summer, pending regulatory approvals. They had announced a preliminary agreement in December. The systems’ CEOs said the deal represents an opportunity to expand Jefferson’s health insurance business in ways that make care more efficient while improving quality. The point is not to cut overhead costs, they said.
“Through our integrated operating model, the combined organization will provide the communities we serve with access to the highest quality care, the benefits of continuous research and innovation, a network of specialists, clinical trials, and so much more,” Jefferson CEO Joseph G. Cacchione said in a news release announcing the definitive agreement.
The combined systems will employ 65,000 people and have 700 locations, the systems said. Their combined revenue in fiscal 2023 was $14 billion.
After closing, Cacchione will continue as CEO. Lehigh Valley CEO Brian A. Nester will become Jefferson’s chief operating officer and president of legacy Lehigh Valley businesses. Baligh R. Yehia, currently president of Jefferson health businesses, will become Jefferson’s chief transformation officer and will remain president of the legacy Jefferson Health operations.
An unspecified number of Lehigh Valley board members will join the Thomas Jefferson University board, the systems said.