PHILADELPHIA, Pa. – Jefferson Health, the parent organization of Lehigh Valley Health Network (LVHN), announced Wednesday that it is implementing a system-wide workforce reduction, cutting approximately 1% of its total staff.
The move will result in the layoff of an estimated 600 to 700 employees across all of Jefferson's properties, which collectively employ about 65,000 people. A Jefferson spokesperson confirmed the cuts are a response to "significant financial headwinds" facing the system.
The healthcare giant’s struggles mirror a broader crisis noted by industry groups like the American Hospital Association (AHA). Hospitals across the nation are consistently facing financial difficulties due to a combination of factors, including persistent cost inflation, tariffs on medical supplies, and issues with underpayments from government-sponsored insurance programs like Medicare, Medicaid, and Medicare Advantage plans.
While Jefferson has not yet specified how the layoffs will affect staff or facilities within the Lehigh Valley Health Network, the organization stated the "thoughtful, strategic actions" are necessary to ensure the health system remains strong and can continue to invest in care.