Philadelphia-based Thomas Jefferson University, owner of Jefferson Health, recorded an operating loss of $252.6 million (-1.9% operating margin) through the third quarter of fiscal 2026, compared to an operating loss of $29.3 million (-0.3% margin) during the same period last year.
Seven things to know:
1. Jefferson’s operating loss through the nine months ended March 31 includes $94.6 million in restructuring costs. The restructuring 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 its May 15 financial report. In October, Jefferson confirmed to Becker’s it planned to lay off around 1% of its 65,000-person workforce — approximately 650 employees.
2. Jefferson Health Plan recorded a $111.9 million loss through the third quarter of 2026 as medical expense trends outpaced premium increases. The health plan reported a $111.5 million loss over the same period in 2025.
3. Jefferson reported total operating revenue of $13 billion through the third quarter of 2026, up from $11.6 billion during the same period last year. Net patient service revenue was $9 billion, up from $8.3 billion. Insurance premium revenue was $1.9 billion, up from $1.6 billion.
4. Total operating expenses were $13.1 billion through the third quarter of 2026, up from $11.6 billion during the same period last year. Salaries, wages and employee benefits totaled $6.3 billion, up from $5.7 billion. Insurance services medical expenses totaled $1.7 billion, up from $1.4 billion. Supply expenses totaled $1 billion, up from $890.2 million. Drug expenses were $1.4 billion, up from $1.1 billion.
5. Jefferson’s fiscal 2025 results include eight months of Lehigh Valley Health Network activity. Jefferson merged with the Allentown, Pa.-based health system on Aug. 1, 2024.
6. As of March 31, Jefferson Health Plan had 417,968 members. The health plan had 362,173 members on the same date in 2025.
7. Excluding restructuring costs, Jefferson recorded an operating loss of $158 million (-1.2% margin) through the third quarter of 2026.
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