After factoring in $64.7 million in restructuring costs, Philadelphia-based Thomas Jefferson University, owner of Jefferson Health, recorded an operating loss of $201 million (-2.3% operating margin) in the first half of fiscal 2026, up from an operating loss of $55.3 million (-0.7% margin) during the same period last year.
The restructuring costs included severance and “other strategic actions to align operations and obtain cost efficiencies to sustain” Jefferson’s mission service and access to care, according to its Feb. 13 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.
Excluding the restructuring costs, Jefferson reported a $136.3 million operating loss (-1.6% margin) for the six months ended Dec. 31.
Total operating revenue was $8.6 billion in the first half of 2026, up from $7.5 billion last year. Net patient service revenue was $6 billion, up from $5.4 billion. Insurance premium service revenue was $1.2 billion, up from $1 billion.
Total operating expenses were $8.7 billion in the first half of 2026, up from $7.6 billion during the same period last year. Salaries, wages and employee benefits totaled $4.2 billion, up from $3.7 billion last year. Supply expenses were $698.2 million, up from $583.9 million. Drug costs were $928.9 million, up from $717.5 million.
Jefferson Health Plans reported an operating loss of $90.7 million in the first half of 2026 as medical expense trends outpaced premium increases. The health plan recorded an operating loss of $118.5 million during the same period last year. Health plan membership was 371,005 as of Dec. 31, up from 359,662 on the same date in 2024.
Jefferson’s operating results include six months of Lehigh Valley Health Network activity in the first half of fiscal 2026 and five months for the first half of fiscal 2025. Jefferson merged with the Allentown, Pa.-based health system on Aug. 1, 2024.
