Jefferson posts $196M operating loss in fiscal 2025

Philadelphia-based Thomas Jefferson University, owner of Jefferson Health, recorded an operating loss of $196 million (-1.2% operating margin) in fiscal 2025, down from an operating income of $1.3 million (0% margin) in 2024, according to its Aug. 22 financial report. 

The results for the year ended June 30 include 11 months of Lehigh Valley Health Network activity, according to the report. Jefferson merged with the Allentown, Pa.-based health system on Aug. 1, 2024. On a 12-month pro forma basis, Jefferson’s operating loss was $197 million.

Due to the Lehigh Valley Health Network acquisition, Jefferson saw significant increases to its operating revenue and operating expenses in 2025. Revenue rose 57.6% year over year to $15.8 billion. Operating expenses rose 59.5% year over year to $16 billion. 

Jefferson attributed the unfavorable financial results in 2025 primarily to the Jefferson Health Plan, pharmacy trend and organizational inflationary pressures.

Jefferson Health Plan-related activities resulted in a $170 million loss, driven by GLP-1 pharmaceuticals and medical expense trends outpacing inflation. In fiscal 2024, health plan-related activities resulted in a $100 million gain. 

The system reported a net income of $2.9 billion in 2025. Jefferson saw $2.6 billion in net assets from its combination with Lehigh Valley Health Network. Jefferson reported a net income of $280.3 million in 2024. 

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