Jefferson operating loss climbs to $231M amid restructuring

Philadelphia-based Thomas Jefferson University, owner of Jefferson Health, reported $231 million in operating losses for fiscal year 2023, which ended June 30, The Philadelphia Inquirer reported Aug. 14. 

After accounting for the $153 million Jefferson received from the sale of three businesses, the system's loss was $79 million, according to the report. Since July 1, 2022, Jefferson sold a lab business ($108 million), 51 percent of its interest in Delaware Valley Accountable Care Organization ($25 million) and a noncontrolling interest in mammography business ($19.7 million).

Revenue for the fiscal year hit $9.7 billion, up from $7.9 billion the prior year. Einstein Healthcare Network and Health Partners Plans, which were acquired in 2021, account for most of the $1.8 billion increase, according to the report. 

Inpatient admissions for the year ending June 30 increased 5.5 percent to 152,849, primarily thanks to the Einstein acquisition, according to the health system. Outpatient visits increased by a similar percentage year over year, but inpatient surgeries declined 7.9 percent.


In July, Jefferson announced that it is reducing its workforce by approximately 1 percent, or about 400 positions. The move came six months after the health system rolled out a restructuring plan to operate as three divisions instead of five. The reorganization also resulted in layoffs, primarily at the executive level.

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