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Jefferson Health, LVHN laying off up to 700 employees amid financial hardships
Jefferson cites a $195 million operating loss and aims to save $40 million to $45 million annually by cutting about 1% of its 65,000 employees across its health system.
- On Wednesday, Thomas Jefferson University laid off about 1% of its workforce, between 600 and 700 of its 65,000 employees, to streamline its health system.
- Officials pointed to insurance-subsidiary losses and operating shortfalls, with Jefferson reporting a $195 million operating loss for the year that ended June 30, Fitch noted larger fiscal strains including a $170,000,000 loss at Jefferson Health Plans.
- Earlier cost-cutting in 2023 trimmed about 400 jobs under a $300,000,000 plan and eliminated 171 back-office jobs in March, with prior moves expected to save $40 million to $45 million annually.
- The layoffs are affecting the entire system, including units added since the Lehigh Valley Health Network merger, and Joseph G. Cacchione, Chief Executive Officer at Jefferson, said the reductions are necessary to sustain the mission and align operations for the future.
- Amid wider sector headwinds, Jefferson's cuts mirror regional trends as the American Hospital Association cites underpayments from Medicare, Medicaid and Medicare Advantage, while peer systems like University of Pennsylvania Health System and Main Line Health have also recently pared staff.
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Jefferson Health, LVHN laying off up to 700 employees amid financial hardships
Jefferson Health, the parent organization of Lehigh Valley Health Network, announced Wednesday that it is laying off about 1% of its workforce across all its properties, including LVHN. The move by Jefferson will result in anywhere from 600 to 700 of its 65,000 employees being laid off. Damien Woods, a spokesperson for Jefferson, said information was not available about what job sectors or locations were affected by the layoffs. In a statement, …
·Pennsylvania, United States
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Total News Sources14
Leaning Left5Leaning Right0Center6Last UpdatedBias Distribution55% Center
Bias Distribution
- 55% of the sources are Center
55% Center
L 45%
C 55%
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