Jefferson Health CEO Joe Cacchione, M.D. (left), and Lehigh Valley Health Network CEO Brian Nester
By Dave Muoio – December 19, 2023 –
Philadelphia-based Jefferson Health and Allentown, Pennsylvania-based Lehigh Valley Health Network (LVHN) have taken the initial steps toward a $14 billion merger, the systems announced Tuesday.
The organizations said they have signed a non-binding letter of intent under the vision creating “a leading integrated care delivery system,” which would include Thomas Jefferson University and a bolstered nonprofit health plan.
Pending further negotiations, regulatory approvals and closing conditions, the combined 62,000-employee system would span 30 hospitals and over 700 care sites in Pennsylvania and New Jersey. The systems are targeting a 2024 close.
“The healthcare 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 Joseph G. Cacchione, M.D., CEO of Jefferson, said in the announcement. “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.
The organizations’ announcement said the merger would reduce the cost of care and expand the footprint of their “distinctive clinical services lines that meet patient needs and address health disparities.”
