Sources: Kennedy Health next to join Jefferson
Next up in Thomas Jefferson University's consolidation wave: Kennedy Health System, which operates hospitals in Cherry Hill, Stratford, and Washington Township, said industry sources, including one with direct knowledge of the negotiations.
Next up in Thomas Jefferson University's consolidation wave: Kennedy Health System, which operates hospitals in Cherry Hill, Stratford, and Washington Township, said industry sources, including one with direct knowledge of the negotiations.
A deal to make Kennedy a part of the rapidly expanding Jefferson would be the Center City system's fourth since chief executive Stephen K. Klasko led the breakup of the former Jefferson Health System in 2014.
Both parties declined this week to confirm a deal.
"Kennedy Health has nothing to report on this matter at the present time," a Kennedy spokeswoman said.
"As a leading academic medical center, Thomas Jefferson and Jefferson Health routinely explore opportunities or initiatives with institutions that align with our academic, clinical or research missions," a Jefferson spokeswoman said.
Jefferson said Tuesday that it had reached a definitive merger agreement with Aria Health. Abington Health officially became part of Jefferson on April 30.
Jefferson's preliminary agreement to take over Philadelphia University was announced in December.
Klasko's mantra for his dramatic consolidation of the Philadelphia region's health-care landscape has been "delivering the right care at the right time in the right place," as the Haverford High School graduate has often said.
The addition of the Kennedy system, which has 607 licensed beds, would give Jefferson 2,824 licensed beds and $4 billion in annual revenue.
The University of Pennsylvania Health System has $5 billion in annual revenue and 2,487 licensed beds, including those at recently acquired Lancaster General Hospital.
Kennedy, which employs 4,470, has been consistently profitable in recent years. It had a solid operating profit of $48.1 million in 2014 on $512 million of revenue, up from $21.6 million in operating profit on $466 million in revenue the year before.
But Kennedy faces stiff competition from Cooper University Health Care and Virtua, both of which are larger.
Jefferson already provides neurological care at Kennedy. The Rothman Institute, which has close ties to Jefferson, has a branch at Kennedy's Washington Township location.
Jefferson is also in a partnership with Inspira, a Kennedy competitor, to build a $30 million ambulatory-care center, possibly in Deptford Township.
It is not clear whether Kennedy's merger with Jefferson, which is anchored by the Sidney Kimmel Medical College, would have any impact on Kennedy's status as a major teaching affiliate of the Rowan University School of Osteopathic Medicine.
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