Jefferson Health is the latest system to undergo restructuring in a challenging financial environment.
The Philadelphia-based nonprofit is consolidating five divisions into three — the north, central, and east sectors. A spokesperson said the changes will “streamline our processes and optimize our health system.” The spokesperson did not respond to questions regarding job cuts due to the reorganization.
Many health systems are choosing to reorganize as labor pressures and inflation continue to squeeze hospital operating margins. Washington-based nonprofit Providence said in July that it was consolidating seven divisions into three to help reduce overall costs. A few months later, for-profit HCA Healthcare, based in Nashville, Tennessee, announced it was changing its corporate structure and re-appointing several executives to deal with financial challenges.
At Jefferson Health, each of the three areas will be led by a president. Jefferson was still looking to assume leadership of the eastern region. All will report to Interim CEO Ken Levitan, who is also president and CEO of the Einstein Healthcare Network, which joined Jefferson in 2021.
Jefferson Health, affiliated with Thomas Jefferson University, is a network of 18 hospitals serving the Philadelphia area and southern New Jersey. The university reported a 2022 operating loss of $125.8 million, despite a 40% increase in revenue to $7.91 billion, with a big boost from premium revenue.
Dr Joseph Cacchione, CEO of Jefferson Health and Thomas Jefferson University, said in a statement that consolidation is in the “best interests” of the health system and supports its consolidation efforts. .
Cacchione took over as CEO in September. He was previously executive vice president of clinical services and networks at Ascension Health.
