Jefferson Health and Lehigh Valley Health Network have taken a major step toward completing their proposed merger.
The two health systems have signed a definitive agreement to merge, according to a Wednesday news release. The organizations said they plan to create a $15 billion regional nonprofit system with more than 65,000 employees, which will operate 30 hospitals and more than 700 care sites in Pennsylvania and New Jersey.
Related: Jefferson CEO lays out Lehigh Valley integration plan
The health systems expect the deal to close this summer, pending regulatory approval, according to the news release.
Financial details of the deal were not disclosed.
Upon closing, Jefferson CEO Dr. Joseph Cacchione would be CEO of the new Jefferson enterprise, according to the release. Lehigh Valley President and CEO Dr. Brian Nester would be chief operating officer at the new enterprise and president of the legacy Lehigh Valley operations, reporting to Cacchione. Dr. Baligh R. Yehia would be chief transformation officer and remain president of Jefferson Health operations, also reporting to Cacchione.
The new entity's board would include members from both systems.
The organizations did not respond to questions about the new enterprise's branding or whether layoffs are anticipated as a result of the transaction.
Philadelphia-based Jefferson and Lehigh Valley signed a non-binding letter of intent to merge in December. Executives have said the deal would improve the systems' financial stability, help grow Jefferson Health Plans and support academic programs and clinical research at Thomas Jefferson University's Sidney Kimmel Medical College and the Jefferson College of Nursing.
Thomas Jefferson University, which includes Jefferson Health insurance and clinical operations, reported $58.1 million in net income for the nine-month period ended March 31, compared with a $50.9 million loss in the year-ago period. The health network operates 17 hospitals and more than 160 outpatient care locations.
Allentown, Pennsylvania-based Lehigh Valley, which operates 14 hospital campuses, 29 health centers and more than 300 primary and specialty practices, reported $71.6 million in net income for the nine-month period ended March 31, compared with a $15.2 million net loss in the year-ago period.
