Jefferson Health, Lehigh Valley Health Network To Merge

Jefferson Health and the Lehigh Valley Health Network, two large regional health care systems, plan to merge.

In a statement late Tuesday morning, Jefferson Health and the Lehigh Valley Health Network said they “signed a non-binding letter of intent to create a leading integrated care delivery system, including a national research university, and an expanded not-for-profit health plan.”

Pending regulatory approvals, the health systems plan to merge in 2024.

Jefferson Health operates Jefferson Bucks Hospital in Falls Township and has numerous affiliated offices within the county. It also operates Jefferson Torresdale Hospital, which is in Philadelphia but near the Bucks County border.

Jefferson Health took over the 112-bed hospital in Falls Township in 2016. The hospital has been in the area for decades and was previously called Delaware Valley Medical Center.

Philadelphia-based Jefferson Health, the city’s second-largest employer, has a regional workforce exceeding 42,000. It ranks as the largest health system in the Philadelphia area.

Lehigh Valley Health Network, headquartered in Lehigh County, employs 20,000 across its system. It is the largest employer in the Lehigh Valley.

“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 ACA insurance offerings in Eastern Pennsylvania and Southern New Jersey,” the health systems said.

The combined health system would operate 30 hospitals and more than 700 sites of care if the deal goes through.

“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,” said Jefferson Health CEO Dr. Joseph G. Cacchione.

“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. 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. 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,” said President and CEO Lehigh Valley Health Network Dr. Brian A. Nester.

Upon completion of the transaction, Jefferson’s CEO will maintain his role as chief executive officer of the network, and Lehigh Valley Health Network’s CEO will become executive vice president and chief operating officer, as well as president of the facilities in the current Lehigh Valley Health Network footprint, reporting to Cacchione, a statement said.

The combination of the two health systems comes at a time when there is growing concern about consolidation in the health care sector.

Doylestown Hospital and Grand View Hospital in Upper Bucks County are the only two hospitals in the county that are not owned by a large regional or national chain. Lower Bucks Hospital in Bristol Township is owned by for-profit Prime Health Care and St. Mary Medical Center in Middletown Township is part of the national nonprofit Trinity Health system.

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