Philadelphia-based Thomas Jefferson University, owner of Jefferson Health, recorded an operating loss of $181.5 million (-1% operating margin) in fiscal 2026, an improvement from an operating loss of $208.3 million (-1.3% margin) during the same period last year, according to its Aug. 14 financial report.
Five things to know:
1. Jefferson’s operating loss for the 12 months ended June 30 includes $112.4 million in restructuring costs. Those costs included severance and “other strategic actions to align operations and obtain cost efficiencies to sustain” Jefferson’s mission of service and access to care, according to the report. In October, Jefferson confirmed to Becker’s it planned to lay off around 1% of its 65,000-person workforce — approximately 650 employees. The system did not incur any restructuring costs in 2025.
2. Jefferson Health Plan said medical expense trends continued to outpace premium increases in 2026, but cut its operating loss by nearly $40 million in fiscal 2026 compared to 2025. The health plan reported an operating loss of $130.3 million in 2026, compared to a loss of $169.9 million in 2025.
3. The system reported total operating revenue of $17.7 billion in 2026, up from $15.8 billion in 2025. Jefferson’s fiscal 2025 results include 11 months of Lehigh Valley Health Network activity. Jefferson merged with the Allentown, Pa.-based health system on Aug. 1, 2024. Net patient service revenue totaled $12.1 billion, up from $11.1 billion. Insurance premium revenue was $2.7 billion, up from $2.2 billion. Jefferson received $87.6 million in government support for COVID-19 in 2026, compared to $467,000 in 2025.
4. Total operating expenses were $17.7 billion in 2026, up from $16 billion in 2025. Salaries, wages and benefits totaled $8.4 billion in 2026, up from $7.8 billion in 2025. Insurance services medical expenses totaled $2.3 billion, up from $2 billion. Drug expenses were $1.9 billion, up from $1.6 billion. Supply expenses were $1.4 billion, up from $1.2 billion.
5. Excluding restructuring costs, Jefferson reported an operating loss of $69.1 million (-0.4% margin) in 2026.
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