Lehigh Valley Network plans merger with Jefferson in 2024

Lehigh Valley Health Network (LVHN) and Jefferson today announced plans to merge into one integrated care delivery system by the end of 2024. 

The two organizations have signed a non-binding letter of intent. 

 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, the two said in a statement. 

“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,” said Brian Nester, president and CEO, Lehigh Valley Health Network.  

“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 said. 

 “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.”  

A spokesperson for LVHN said today until approval is granted, “everything is status quo with both organizations, and nothing changes for patients.” 

The parties expect to sign a definitive agreement and close the transaction in 2024, pending completion of all necessary regulatory reviews and closing conditions. 

 State Rep. Peter Schweyer, D-Lehigh Valley, said today, “I was an employee of Sacred Heart Hospital, an independent healthcare provider, that merged with another healthcare network.  I understand that consolidations can be worrisome to neighborhoods, patients, and employees.  But, when done right, mergers can mean quality patient care remains, jobs are not lost, and communities see economic development and investment.” 

The news today no doubt has many wondering what this may mean to the employees of LVHN and the patients of one of the many LVHN practices, Schweyer said. 

“I will continue to communicate with LVHN through this process and do everything possible to ensure the LVHN staff have job security and that the quality of care and healthcare provider-patient relationships we all have come to expect remain intact,” he said. 

Both Jefferson and LVHN said they 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. 

With the merger, the two said 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, while lowering costs.  

The capabilities will be further strengthened by both organizations’ academic programs, especially of Thomas Jefferson University.  

This will increase opportunities for learners to receive clinical training, patients to participate in clinical research within the network, and provide more choice for health plan beneficiaries, the two said.  

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

“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 Dr. Joseph G. Cacchione, CEO, Jefferson.  

“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,” 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.”  

 Upon the closing of the transaction, Jefferson’s Cacchione will continue to serve as CEO of Jefferson Enterprise. LVHN’s Nester will serve as executive vice president/CEO and president of the Lehigh Valley Health Network, reporting directly to Cacchione. Dr. Baligh R. Yehia will serve as executive vice president/chief transformation officer and president of Jefferson Health, while continuing to report directly to Cacchione.  

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.