At a time of increasing scrutiny over health system mergers, Philadelphia-based Jefferson Health and Allentown, Pennsylvania-based Lehigh Valley Health Network (LVHN) have signed a non-binding letter of intent to merge.
Once the deal closes, the combined system would operate 30 hospitals and more than 700 care facilities, supported by more than 62,000 teachers, physicians and staff employed in eastern Pennsylvania and southern New Jersey.
Complementary capabilities would be further strengthened by the academic programs and learning environment of both organizations, especially Thomas Jefferson University, the nonprofits said. “This will increase opportunities for students to receive clinical training, patients to participate in in-network clinical research, and provide more options for health plan beneficiaries,” a news release says.
“The healthcare landscape and the needs of our communities are changing; “It is critical that leading systems evolve and make investments in the future of care and well-being, increasing and protecting access to improved, affordable, high-quality and innovative care, particularly for historically underserved patients,” said Joseph Cacchione, MD, CEO of Jefferson, in a sentence.
“Combining the resources of Jefferson and LVHN will allow us to meet the changing needs of our diverse communities more quickly, efficiently and effectively. Together, with our combined network of resources and care sites, managed care expertise, educational and research capabilities, we will have the ability to make significant improvements in health outcomes and address health disparities in this region and beyond, in benefit of our communities. , patients, doctors, teachers, staff, students and health plan members.”
Following the closing of the transaction, Cacchione de Jefferson will continue to serve as CEO of Jefferson Enterprise. LVHN President and CEO Brian Nester, DO, MBA, will serve as Executive Vice President/COO and President of the legacy Lehigh Valley Health Network. Baligh R. Yehia, MD, will serve as executive vice president/chief transformation officer and president of the Jefferson Heath Legacy. The newly integrated Board of Directors and leadership team will be comprised of members from both systems. The details will be worked out in the final agreement.
