Jefferson Health had a $252.6 million operating loss in the nine months ended March 31
The loss included $94.6 million in restructuring charges related to layoffs last fall and other moves designed to improve the nonprofit’s future financial performance.
Jefferson Health had a $252.6 million operating loss in the first three quarters of fiscal 2026, which ends in June, the Philadelphia-based nonprofit health system told bond investors Friday.
“This was primarily driven by ongoing challenges within Jefferson Health Plans, severe winter weather impacts in January and February, planned restructuring and integration costs, and continued reimbursement shortfalls from insurers,” Mike Harrington, Jefferson’s chief financial officer, said in an email.
Jefferson’s operating loss in the same period a year ago was $29.3 million.
In the three months ended March 31, Jefferson added $30 million in restructuring costs to the $64.7 million in charges already disclosed. Most of those expenses related to the elimination of 600 jobs last fall.
Here are more details:
Revenue: Total revenue was just shy of $13 billion, up from $11.6 billion last year, which included only eight months of results from Lehigh Valley Health Network. Jefferson acquired that system in August 2024, extending its reach from South Jersey to near Scranton. The health system has more than 30 hospitals with 4,800 beds.
The insurance business: Jefferson Health Plans reported a 15% increase in membership, to 417,968 on March 31 from 362,173 the year before. The latest figure included 316,061 people in Jefferson’s Health Partners Medicaid plan, down from 318,775 in March 2025.
Jefferson’s financial filing did not give details on the source of the growth, but the company had its best year ever in Medicare Advantage enrollment expansion and strong growth in individual plans on Pennie, Pennsylvania’s ACA insurance marketplace.
Notable: Excluding restructuring costs, Jefferson’s operating results improved to a $22 million loss in the quarter that ended March 31 from a $52 million loss in the December quarter, and an $84 million loss in the quarter that ended Sept. 30.
Jefferson is unusual among the nation’s largest nonprofit health systems in that it follows financial reporting rules for universities. Its top corporate entity is Thomas Jefferson University.
That means it counts investment income in its operating results, including $222 million so far in fiscal 2026. Without that income, Jefferson’s operating loss would have been $475 million.
