Jefferson Completes Merger With Lehigh Valley Health Network
After receiving regulatory approval, Philadelphia-based Jefferson and Allentown, Pa.-based Lehigh Valley Health Network (LVHN) have closed the merger deal announced in December 2023.
Jefferson said the system is now among the top 15 largest nonprofit health systems in the U.S. with 32 hospitals and more than 700 sites of care in Eastern Pennsylvania and Southern New Jersey. It has grown rapidly through acquisition over the past few years, including Abington Health, Kennedy Health System in New Jersey and Einstein Healthcare Network.
The combined organization, with annual revenue of around $15 billion, will now focus on integrating clinical care, operations, and brand identity.
“We are delighted to bring these two incredible organizations together as we look ahead at all the good we will do for the communities we’re privileged to serve,” said Joseph Cacchione, M.D., CEO of Jefferson, in a statement. “This milestone is even more significant as Jefferson celebrates its bicentennial, marking our longstanding commitment to improving lives through education, healthcare and discovery. As we create our third century, this is a historic moment for our 65,000 colleagues as it marks a new chapter in access, innovation, equity, and opportunity for patients, students and health plan members. We have many more milestones ahead as we share knowledge and integrate our operations.”
In an interview with the Morning Call newspaper, Cacchione said that LVHN will undergo some type of rebranding but final branding decisions have not yet occurred, Dr. Joseph Cacchione, CEO of Jefferson, said during an interview ahead of Thursday’s merger announcement.
“Over time there will be a branding convention that will include the Jefferson name and the Lehigh name. The Lehigh name will be preserved and will not go away. The Lehigh Valley name has a lot of brand equity, it’s a very important brand — one of the reasons for our whole plan,” Cacchione said.”
Cacchione also spoke to the Morning Call about synergies between the two organizations. “Jefferson has the top heart transplantation program in the city of Philadelphia right now,” he said. “We see the ability to find patients earlier in the Lehigh Valley, get them plugged into our transplant program, the top transplant program in the city and expedite the people’s path to cardiac transplantation.”
He also told the newspaper that for now there are no plans to eliminate LVHN’s home health care program in favor of Bayada Home Health Care, which Jefferson has a business partnership with.
Cacchione will continue to serve as CEO of the Jefferson enterprise. Brian Nestor, D.O., M.B.A., former CEO of LVHN, will serve as executive vice president/chief operating officer. He is joined on the leadership team by Baligh R. Yehia, M.D., M.P.P., M.Sc, who will serve as president of the legacy Jefferson Health and executive vice president/chief transformation officer of the Jefferson enterprise. The newly integrated board of trustees and leadership team is comprised of members from both systems.
"The combination of our two world-class health care institutions will allow us to set the course for care in the region by launching new clinical programs, advancing health equity and building healthier communities,” said Yehia, in a statement. “Jefferson Health and Lehigh Valley Health Network will work together to recruit and retain the best and brightest clinicians, offering them opportunities to advance their careers while providing exceptional care and exemplifying our unwavering commitment to improving the health and well-being of the communities we serve.”
As part of the integration, the region LVHN serves will soon have access to Jefferson Health Plans.
