Thomas Jefferson University had a $90.5 million operating loss in first quarter of fiscal 2025

Nov. 13—Thomas Jefferson University, which includes Lehigh Valley Health Network since Aug. 1, had an operating loss of $90.5 million in the three months ended Sept. 30, the Philadelphia-based nonprofit health system told bondholders Tuesday. In the same period a year ago, Jefferson and Lehigh Valley had a combined $84.2 million loss.

Jefferson's operating loss for its legacy business in the quarter rose to $77.6 million from $48 million a year ago. At Lehigh Valley, the quarterly loss fell to $13 million from $36 million last year.

The financial report came just a few days after Jefferson announced that it would postpone annual raises for 42,000 Philadelphia-area employees from January to July.

Here are details from the latest financial report:

Revenue: The 32-hospital system, which stretches from northeastern Pennsylvania to South Jersey, reported $3.73 billion in revenue, up 10% from $3.39 billion a year ago. Lehigh Valley's revenue was up 12%, while Jefferson's climbed 9%, according Jefferson's municipal bond filing.

Expenses: Jefferson reported a notable jump in the insurance claims paid by its health insurance business. Jefferson Health Plans' medical claims rose 14% to $441 million. On the other side of the ledger, health insurance premiums fell 7% to $512 million. Most of Jefferson's insurance business is Pennsylvania Medicaid, which this year received a rate cut. This has put all Medicaid managed-care plans in the state under pressure.

Notable: Jefferson expects to complete this week the sale of more than $1 billion worth of bonds in a transaction that will bring legacy Lehigh Valley under Jefferson's debt structure. The sale includes $542 million in new debt that will be used for capital projects at Jefferson and Lehigh Valley.

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