Jefferson budgets for $80M loss this year

Joseph Cacchione, MD, CEO of Jefferson Health, told the audience at the Philadelphia Business Journal's Healthcare CEO Summit that the system expects to end the 2023 fiscal year with an $80 million loss as labor and supply costs continue to increase. But things are moving in the right direction.

The health system renegotiated its contract with Independence Blue Cross, its largest commercial insurer, to mitigate the effects of inflation, according to the Philadelphia Business Journal. Dr. Cacchione called Independence Health Group CEO Greg Deavens a "very good partner."

Dr. Cacchione also spoke about redesigning workforce expectations for more flexibility and retaining talent trained at Jefferson, based in Philadelphia.

In January, he spoke with Becker's about reorganizing Jefferson from five divisions to three and strategies to become more efficient with care delivery. The health system is combining duplicative programs and specializing in certain areas to deliver higher-quality care more efficiently.

"It's really about optimizing the revenue line in a way that's different and integrating the health system across the entire organization," he told Becker's. "The way it's now set up, these hospitals in three different regions have the most benefit from integrating, and really complementing one another rather than competing with one another."

He is also working with physicians for their input on service line growth. Dr. Cacchione told Becker's he wants physicians to feel like owners of their service lines.

"I want administrative leadership of the service lines working with physicians, empowering them to help make these decisions and to help us grow our business in a way that is physician led," he said.


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