As part of the realignment of services in the 14-hospital network Thomas Jefferson University has assembled since 2015, the nonprofit health system projected this week that it will eliminate more than 400, or at least 16 percent, of its staffed hospital beds in the next two to four years.
In a preliminary bond offering statement published this week, Jefferson said it has 2,509 staffed beds and expects the number to decline to fewer than 2,100.
“The simple fact is there are going to be a lot fewer hospital beds in this country,” Jefferson president and chief executive Stephen K. Klasko said in an interview last month, referring to predictions that the number of hospital beds nationwide will decline 20 to 25 percent over an unspecified time period.
Asked for a comment on potential job cuts, a Jefferson spokesman said: “We believe the investments in innovation we are making today could very well mean even more jobs in the region in the future, despite the reduction in inpatient beds.”
Jefferson’s bond offering statement to raise $485 million also published the first details on the broad structure of the dramatically expanded Jefferson. It did not reflect the preliminary deal for Jefferson to acquire Einstein Health Network, which has 965 licensed beds.
“Jefferson Health plans to support a single academic medical center,” which is comprised of Thomas Jefferson University Hospital and the Jefferson Hospital for Neuroscience, both in Center City, the pitch to potential bond investors said.
Abington Memorial Hospital and Jefferson/New Jersey — Washington Township would serve as “regional referral centers.” In addition, the system would be organized into “two community hospital centers, four ‘connected’ community hospitals, three specialty hospitals and micro hospitals,” the prospectus said. It did not provide details on which of the smaller hospitals fit into each category.
Since Jan. 1, Jefferson has been operating profitably. That has reduced the organizations operating loss for the first eight months of the fiscal year ending June 30 to $10.4 million. For the first six months of fiscal 2018, Jefferson had an operating loss of $27.9 million.