Jefferson Well being is the most recent system to undertake a restructuring amid a difficult monetary surroundings.
The Philadelphia-based nonprofit is consolidating 5 divisions into three – the north, central and east areas. A spokesperson mentioned the modifications will “streamline processes and optimize our well being system.” The spokesperson didn’t reply to questions concerning job cuts ensuing from the reorganization.
Extra well being methods are selecting to reorganize as labor pressures and inflation proceed to squeeze hospital working margins. Washington-based nonprofit Windfall mentioned in July it was consolidating its seven divisions into three to assist cut back overhead prices. A couple of months later, Nashville, Tennessee-based for-profit HCA Healthcare introduced it was altering its company construction and reassigning some executives in response to monetary challenges.
At Jefferson Well being, every of the three areas will likely be led by a president. Jefferson continues to be seeking to fill the east area management position. All will report back to interim Chief Working Officer Ken Levitan, who can also be president and CEO of the Einstein Healthcare Community, which joined Jefferson in 2021.
Jefferson Well being, affiliated with Thomas Jefferson College, is an 18-hospital system serving the Philadelphia area and southern New Jersey. The college reported a 2022 working lack of $125.8 million, though income grew 40% to $7.91 billion, with a big enhance from insurance coverage premium income.
Dr. Joseph Cacchione, CEO of Jefferson Well being and Thomas Jefferson College, mentioned in a press release the consolidation is within the well being system’s “greatest curiosity” and helps its integration efforts.
Cacchione took over CEO in September. He beforehand was govt vp of medical and community providers at Ascension Well being.