Jefferson announces .3 million operating loss for the nine months ending March 31.
Thomas Jefferson University, a prominent nonprofit health system, has reported an operating loss of .3 million for the nine-month period ending March 31. This marks an improvement from the .6 million loss recorded during the same timeframe in the previous year, according to a financial disclosure made to bondholders. The adjustments made to last year’s figures reflect the acquisition of Lehigh Valley Health Network, a transaction finalized in August 2022. This acquisition expanded Jefferson’s operational footprint to encompass 32 hospitals, including facilities in Northeastern Pennsylvania.
The financial landscape at Jefferson has been challenging, particularly as the health system works to recover from a significant operating loss of .4 million reported in the first quarter of fiscal 2025. This loss incorporated results from Lehigh Valley, illustrating the initial impact of the acquisition. However, there have been positive developments in recent quarters. Jefferson has managed to achieve an operating profit of million in the two quarters following this loss, leading to an overall reduction in the nine-month loss to just under million.
The reported operating results from Jefferson include investment income, which is accounted differently than in most competing health systems that typically categorize such revenue separately. This difference in accounting practices can lead to variations in financial reporting across the sector. Jefferson’s total revenue for the first nine months of fiscal 2025 reached .3 billion, an increase of 6.6% compared to the combined results of Jefferson and Lehigh during the same period in the prior year.
Despite this revenue growth, the health system faces rising expenses, notably a 16% increase in payments for insurance claims through Jefferson’s health plans. Conversely, revenue derived from insurance premiums experienced a slight decline of approximately 1%. This revenue primarily originates from Medicaid-related business operations.
Additionally, Jefferson has observed a noticeable slowdown in its ability to collect payments from legacy business operations. As of the end of March, the health system reported an increase in accounts receivable days, which rose to 64 days from 50.1 days at the end of June. In comparison, legacy operations at Lehigh reported accounts receivable days of 40.5 in March, up slightly from 42.1 in June.
As Jefferson navigates these financial dynamics, the organization remains focused on improving operational performance and enhancing its services across its expanding network.
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