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…