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Jefferson Health System to restructure to provide autonomy and agility for member institutions

March 17, 2014 News Releases

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 (MLH); and Magee Rehabilitation Hospital–to respond to health care 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 health care environment requires that we reimagine the way health care 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 Main Line Health 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:

  • Main Line Health, Paoli Hospital’s Regional Trauma Center affiliation with Thomas Jefferson University Hospital’s Trauma Program
  • Main Line Health’s Neurosurgery program affiliation with the Jefferson Neurosciences Network
  • Main Line Health and TJUH System’s partnership in the Jefferson Transplant Institute
  • Main Line Health, Riddle Hospital’s membership in the Jefferson Kimmel Cancer Center Network
  • Thomas Jefferson University Hospitals, Inc.’s Radiation Oncology service at Main Line Health, Riddle Hospital
  • Joint research between Thomas Jefferson University and the Main Line Health Lankenau Institute for Medical Research
  • Main Line Health and Thomas Jefferson University will continue their long-standing academic affiliation, and Main Line Health 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, Main Line Health 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 Main Line Health 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 Main Line Health 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.

About Main Line Health

Founded in 1985,Main Line Health is a not-for-profit health system serving portions of Philadelphia and its western suburbs. Main Line Health’s commitment—to deliver advanced medicine to treat and cure disease while also playing an important role in prevention and disease management as well as training physicians and other health care providers—reflects our intent to keep our community and ourselves well ahead. A team of more than 10,000 employees and 2,000 physicians care for patients throughout the Main Line Health system.

At Main Line Health’s core are four of the region’s most respected acute care hospitals—Lankenau Medical Center, Bryn Mawr Hospital, Paoli Hospital and Riddle Hospital—as well as one of the nation’s recognized facilities for rehabilitative medicine, Bryn Mawr Rehabilitation Hospital.

Main Line Health also includes Mirmont Treatment Center for drug and alcohol recovery; Main Line Health HomeCare & Hospice, which includes skilled home health care, hospice and home infusion services; Main Line Health Centers, primary and specialty care, lab and radiology, and other outpatient services located in Broomall, Collegeville, Concordville, Exton, King of Prussia and Newtown Square; Lankenau Institute for Medical Research, a biomedical research organization; and Main Line HealthCare,one of the region’s largest multispecialty physician networks.

Main Line Health is the recipient of numerous awards for quality care and service, including System Magnet® designation, the nation’s highest distinction for nursing excellence and the Mid-Atlantic Alliance for Performance Excellence (MAAPE) Excellence Award. Main Line Health is committed to creating an environment of diversity, respect and inclusion and has proudly embraced the American Hospital Association’s #123forEquity Pledge to Act to eliminate disparities in care. We are dedicated to advancing patient-centered care, education and research to help our community stay healthy.