LVHN and Jefferson make merger official

It’s official. Lehigh Valley Health Network has merged with Jefferson to create an integrated health care system.

The two health networks have signed a definitive agreement on the merger.

According to a press release, the combined health system will include a national research university and an expanded not-for-profit health plan.

The system, which will be in the top 15 nonprofit health systems in the U.S., will increase access to high-quality and affordable care, clinical research and health plan offerings and address health inequities for urban and rural communities in Eastern Pennsylvania and Southern New Jersey, the health networks said.

The deal is expected to be completed later this summer, pending final reviews and execution of closing conditions. Jefferson and LVHN announced in December that they had signed a letter of intent to combine.

Under the terms of the agreement, the systems will integrate clinical care, operations and identity to create a regional system that delivers the highest quality care to those it serves.

“We are delighted to take this next step toward combining with Lehigh Valley Health Network it is the future, not only for our organizations but also for care in our region,” said Joseph G. Cacchione, MD, CEO of Jefferson. “Through our integrated operating model, the combined organization will provide the communities we serve access to the highest quality care, the benefits of continuous research and innovation, a network of specialists, clinical trials and so much more, while also building an organization that prioritizes health through value-based care.”

“We could not be more excited about what lies ahead for communities across Eastern Pennsylvania and Southern New Jersey,” said Brian A. Nester, president and CEO of Lehigh Valley Health Network. “As our collective teams worked these past months, we confirmed what we had believed to be true when we signed our initial letter of intent Jefferson is the ideal partner for Lehigh Valley Health Network, our teams and our patients. We look forward to continuing the important work of improving the health and well-being of our communities together.”

Upon closing, the integrated system will operate 30 hospitals and more than 700 sites of care, supported by more than 65,000 employed faculty, clinicians and staff.

Jefferson’s Cacchione will continue to serve as CEO of Jefferson.

LVHN’s Nester will serve as executive vice president and COO of Jefferson enterprise and president of the legacy Lehigh Valley Health Network, reporting directly to Cacchione.

Baligh R. Yehia will serve as executive vice president and chief transformation officer of Jefferson and president of the legacy Jefferson Health, while continuing to report directly to Cacchione.

The newly integrated Board of Trustees and leadership team will be comprised of members from both systems.

Both Jefferson and LVHN will continue to operate as independent entities until the combination closes.

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