The Philadelphia-based Jefferson Health and the Allentown-based Lehigh Valley Health Network (LVHN) plan to merge into one regional health care system next year.
Jefferson Health and LVHN announced Tuesday they signed a non-binding letter of intent to create an integrated care delivery system, a national research university and an expanded not-for-profit health plan.
“Following the negotiation and execution of a definitive agreement, regulatory approvals and completion of closing conditions, the combined system will be better positioned to improve the health and well-being of rural and urban communities through its health care delivery network, learning environment and Medicare, Medicaid and federal health care exchange insurance offerings in Eastern Pennsylvania and Southern New Jersey,” a spokesperson wrote.
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The spokesperson said the merger will help accelerate access to health care services and health insurance benefits for the surrounding community and strengthen both organizations’ academic programs. The spokesperson also said the new system would operate 30 hospitals and more than 700 outpatient sites with more than 62,000 faculty, clinicians and staff.
Jefferson Health and LVHN expect to sign a definitive agreement and close the transaction at some point in 2024. Until the planned merger, both health systems will continue to operate as separate, independent entities.
Upon the merger, Dr. Joseph G. Cacchione will continue to serve as Jefferson’s Chief Executive Officer while Brian A. Nester will serve as Executive Vice President/Chief Operating Officer and President of the legacy LVHN.
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“We are thrilled to be combining with Jefferson and excited about the immediate and long-term benefits this combination will create for the communities of the Lehigh Valley and eastern Pennsylvania,” Nester said. “In Jefferson, we have found an ideal partner that shares our culture and commitment to excellence in clinical care and a learning environment, and that has done a fabulous job in establishing a highly successful health plan with a sharp focus on the well-being of Medicaid and Medicare beneficiaries."
Nester will report directly to Dr. Cacchione while Dr. Baligh R. Yehia will serve as Executive Vice President/Chief Transformation Officer and President of the legacy Jefferson Health. Dr. Yehia will also report directly to Dr. Cacchione.
“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,” Dr. Cacchione said.
A newly integrated Board of Trustees and leadership team will be made up of members from both health systems though the specifics of the team will be determined in the definitive agreement.
Jefferson is principally located in the greater Philadelphia region and southern New Jersey and made up of Thomas Jefferson University, Jefferson Health and Jefferson Health Plans.
Thomas Jefferson University was founded in 1824 and is made up of 10 colleges and three schools offering 200 undergraduate and graduate programs for more than 8300 students.
Jefferson Health is ranked as one of the top health care systems in the nation and the largest provider in the Philadelphia area, serving patients at 17 hospitals and more than 50 outpatient and urgent care locations throughout the region.
Jefferson Health Plans is a not-for-profit managed health care organization that has provided health coverage in Pennsylvania and New Jersey for more than 35 years.
“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," Dr. Cacchione said. "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.”
LVHN is a nationally ranked health system based in Allentown, Pennsylvania. The health network includes 13 hospital campuses, 28 health centers, more than 300 primary and specialty care physician practices and 20 ExpressCARE locations.
"The expertise derived from these operations is becoming a crucial competency for health systems to deliver on their mission, and Jefferson Health Plans will help drive improvements in health outcomes, especially in vulnerable populations," Nester said. "We are also very excited about the opportunity to expand academic and talent development programs that will further bolster our provider pipeline and enhance our ability to attract and retain top talent to the benefit of the communities we both serve.”
