By HFT Staff

Jefferson and Lehigh Valley Health Network (LVHN) announced they have 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. 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. 

Both Jefferson and LVHN are mission-driven organizations with existing capabilities in the growing field of population health management and quality-focused care services, which have consistently demonstrated positive impacts in improving the health of their respective communities. Combined, their capabilities and footprints will accelerate access to leading-edge health care services and health insurance benefits designed to serve the distinct community needs of populations they serve. The complementary capabilities will be further strengthened by both organizations’ academic programs and learning environment, especially of the Thomas Jefferson University.  

Upon closing, the combined system would operate 30 hospitals and more than 700 sites of care, supported by more than 62,000 employed faculty, clinicians and staff. 

Combination benefits would include: 

• A quality-focused care delivery model with the ability to expertly manage population health and reduce cost of care. 
• A wide-ranging care footprint, with 700+ sites of care across eastern Pennsylvania and southern New Jersey, including hospital, ambulatory and post-acute services, as well as a robust primary care base for preventive care. 
• Distinctive clinical services lines that meet patient needs and address health disparities, including strengths in primary care—particularly for patients who have historically faced barriers to high-quality specialty care such as oncology, neurology, orthopedics, cardiovascular and solid organ transplant. 
• Expansion of academic programs, and clinical research bolstered by clinical service lines. 
• A leading health plan that would strengthen patient choice within the LVHN service area, specifically focused on vulnerable and at-risk populations covered by Medicare and Medicaid. 
• Academic pathways for health professionals to acquire additional degrees and pathways for new graduates into high-demand positions.  
• Sustainable cash flow and improved financial stability, enabling the combined organization to continue investing in innovative treatment capabilities and R&D. 

The parties expect to sign a definitive agreement and close the transaction in 2024, pending completion of all necessary regulatory reviews and closing conditions. Both Jefferson and LVHN will continue to operate as separate, independent entities until the combination closes. The parties are committed to ensuring the patients and communities they serve continue to have access to exceptional care from their providers during completion of this process. 

The newly integrated Board of Trustees and leadership team will be comprised of members from both systems. The specifics will be worked out in the definitive agreement.