Jefferson University Hospitals

Jefferson Health System to Restructure to Provide Autonomy and Agility for Member Institutions

03/17/14

Jefferson Health System

TJUH System, Main Line Health and Magee Rehabilitation Hospital to Continue Joint Programs and Clinical Services; Manage Own Financial Oversight

Radnor, Pa. – The Board of Trustees of Jefferson Health System (JHS) voted today to restructure in order to provide the autonomy and agility that is required for its members – TJUH System, the parent entity of Thomas Jefferson University Hospitals, Inc.; Main Line Health System (MLH); and Magee Rehabilitation Hospital – to respond to healthcare reform and pursue individual growth strategies and priorities. The organizations will continue to maximize opportunities to work collaboratively.

The restructuring will enable each organization to manage its own strategic decision-making and financial oversight while continuing their existing joint programs, clinical services and academic affiliations. The restructuring will also allow TJUH System and Main Line Health to pursue new ways of working with each other and create the flexibility for each to explore other strategic relationships. Similar opportunities will be evaluated by Magee Rehabilitation Hospital.

"Today's healthcare environment requires that we reimagine the way healthcare is delivered," said Stephen K. Klasko, MD, MBA, President and CEO of Thomas Jefferson University and TJUH System. "We collectively realized that the existing corporate structure needs to be changed to allow us to be more entrepreneurial, nimble and responsive. Jefferson looks forward to an increasingly vibrant clinical and academic relationship with Main Line Health."

Jefferson Health System does not provide direct patient care. JHS was formed in 1995 to provide overarching business management functions for its members, including consolidated capital acquisition and financial oversight; joint contracting with payers; quality benchmarking; development and management of new provider network structures, such as the ACO-PA, the JHS-affiliated Accountable Care Organization; joint purchasing; self-insurance for hospitals, physicians and other providers; compliance oversight; and internal audit.  TJUH System and MLH intend to continue jointly operating ACO-PA and the insurance programs.

TJUH System and Main Line Health Continue Clinical, Academic and Research Partnerships; Excellence in Patient Care

"This new structure will greatly enhance our ability to react quickly to the rapidly changing clinical and academic landscape, but it changes nothing in terms of patient care. Both Jefferson and Main Line Health patients can expect continued excellence in terms of direct care from their physicians and our staffs," said Jack Lynch, President and CEO of Main Line Health. Lynch added that the existing joint programs and clinical services will continue as follows:

  • MLH, Paoli Hospital's Regional Trauma Center affiliation with Thomas Jefferson University Hospital's Trauma Program
  • MLH's Neurosurgery program affiliation with the Jefferson Neurosciences Network
  • MLH and TJUH System's partnership in the Jefferson Transplant Institute
  • MLH, Riddle Hospital's membership in the Jefferson Kimmel Cancer Center Network
  • Thomas Jefferson University Hospitals, Inc.'s Radiation Oncology service at MLH, Riddle Hospital
  • Joint research between Thomas Jefferson University and the MLH Lankenau Institute for Medical Research
  • MLH and Thomas Jefferson University will continue their long-standing academic affiliation, and MLH will continue as a training site for medical students, residents and other health professions students of Thomas Jefferson University

The restructuring will not impact the employees of TJUH System, MLH or Magee Rehabilitation Hospital. JHS has a relatively small number of employees and each will be offered the opportunity to transition to positions within TJUH System and/or MLH or will receive outplacement assistance and severance packages. The JHS Board and member institutions expressed gratitude to these employees for their exemplary service.

Going forward, TJUH System and MLH are establishing three task forces for medical education, medical research and patient care to explore how the two organizations can enhance their working relationship.

The transaction requires regulatory approval. The definitive agreements will be finalized over the coming months with the restructuring expected to close on July 1, 2014.

Media Only Contact:
Jacqueline Kozloski
Jefferson University Hospitals
Phone: 215-955-6300