Jefferson and Einstein formalize integration with 18 hospital and 50 outpatient facilities

Jefferson Health and Einstein Healthcare Network have finalized their merger, after more than three years after signing the letter of intent to do so.

This merger creates a combination of two Philadelphia-based academic medical centers, forming an integrated system of 18 hospitals as well as more than 50 urgent care and outpatient locations.

CEO of Jefferson Health and President of Thomas Jefferson University Stephen Klasko stated “The culmination of the multiyear process of bringing two great organizations with more than 300 combined years of service, clinical excellence, and academic expertise is not just a merger.”

“Einstein and the new Jefferson together represent an opportunity for the Philadelphia region to creatively construct a reimagining of healthcare, education, discovery, equity, and innovation that will have national and international reverberations,” Klasko further added.

This merger had faced delay from legal challenges and antitrust scrutiny previously. The Pennsylvania attorney general and the Federal Trade Commission (FTC) had attempted to block the merger by suing the two health systems.

FTC argued that this merger of the two health systems would reduce competition in the Montgomery and Philadelphia counties, which would be detrimental to patients. FTC’s appeal was denied by an appellate court last year leading to the FTC dropping its challenge to the merger transaction in the February of 2021.

In January 2021, after FTC lost its case, the Pennsylvania attorney general dropped his opposition to the merger.

Ken Levitan will add the role of the executive vice president at Jefferson Health to his current role serving as the president and CEO of Einstein to help guide the integration of the two health systems.