PHILADELPHIA, Pa. — Jefferson Health, the parent organization of Lehigh Valley Health Network, will lay off 600 to 700 workers across its health system because of financial pressures.
The job cuts make up around 1% of the health network's total staff, after its August 2024 acquisition of LVHN put Jefferson Health at 65,000 employees.
There was no word on how the workforce reductions would affect LVHN staff or facilities.
"Like many organizations in health care and higher education, we are facing significant financial headwinds," Jefferson Health CEO Joseph G. Caccione said in a statement. "To sustain our mission and continue serving our communities, we must take thoughtful, strategic actions to align our operations for the future.
"While these decisions are never easy, they are necessary to ensure Jefferson remains strong and able to invest in expanding access to care, advancing innovation, and supporting those who rely on us most."
It's been more than a year since the LVHN acquisition was completed, expanding Jefferson Health's reach to 32 hospitals and over 700 outpatient care sites.
The Philadelphia Inquirer reported in August that Thomas Jefferson University had a $195.5 million operating loss in fiscal year 2025, compared with a $1.3 million operating profit the year before. Most of that loss came from a nearly $170 million deficit in Jefferson's insurance business, mostly through Medicaid, the newspaper reported.
In September, the Philadelphia Business Journal reported Caccione said the health network would "have to make some hard decisions," noting "we can't sustain losses like this on an annual basis."
The job cuts are the second round to hit the Philadelphia-based health care system this year.
Over 170 employees were laid off in March, according to a state Department of Labor notice filed by Thomas Jefferson University Hospital in January.
