Jefferson Health and Lehigh Valley Health Network completed a merger Thursday that creates a $15 billion nonprofit health system serving Pennsylvania and New Jersey.
Jefferson Health CEO Dr. Joseph Cacchione, who is leading the new enterprise, said the provider has its sights set on integrating the organization's 32 hospitals and more than 700 locations over the next few years. The company will operate under the Jefferson Health brand.
Jefferson Health, also known as Thomas Jefferson University Hospitals and based in Philadelphia, will start with "low-hanging fruit" such as standardizing back-office functions and has integration plans for clinical operations, Jefferson Health Plans and educational partnerships, Cacchione said Wednesday.
"We just need to figure out how we can be better together," Cacchione said. The process is expected to take a few years, he said. The health system does not have layoffs on the horizon, he said.
Related: Jefferson CEO lays out Lehigh Valley integration plan
Jefferson Health does not plan to expand beyond Allentown, Pennsylvania-based Lehigh Valley Health Network's service area, Cacchione said. "This is, for us, about preserving community health and not about just becoming bigger," he said.
Jefferson Health was not actively looking for another merger partner, having just combined with Philadelphia-based Einstein Healthcare Network in 2021, Cacchione said. Initially, Jefferson Health and Lehigh Valley Health Network discussed a joint venture and talks progressed from there, he said.
The health systems announced their plans in December and signed a definitive agreement in May.
Lehigh Valley Health Network President and CEO Dr. Brian Nester is chief operating officer of the merged company and president of Lehigh Valley operations. Dr. Baligh Yehia is chief transformation officer and remains president of Jefferson Health operations. Both report to Cacchione.
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