PHILADELPHIA, Pa.- One of the big three credit rating agencies has a slightly more pessimistic view of Jefferson Health.

Fitch Ratings has revised its outlook on the Philadelphia-based health network from Stable to Negative.

Jefferson did maintain its overall “A” default rating with Fitch, which, according to the agency’s tiered ranking system, indicates “high credit quality.”

Jefferson acquired Lehigh Valley Health Network (LVHN) last year, after the two first announced their intention to merge in 2024.

Jefferson announced a $196 million operating loss for its 2025 fiscal year, driven in large part by losses incurred by its Jefferson Health Plan. According to Fitch, the 370,000-member plan experienced a $170 million loss in 2025, compared to a prior year gain of around $100 million.

69 News reached out to Jefferson about the outlook revision. A spokesperson provided this statement:

“Like all health systems, we continue to face strong headwinds such as declining reimbursements, rising costs and out of control drug prices. As the safety net provider for the region, we continue to focus on access, exceptional quality, and affordability for those we serve.” 

Jefferson CEO Dr. Joseph Cacchione previously told the Philadelphia Business Journal that the health network would have to make some “hard decisions” in the wake of the losses in 2025.

The Journal also reported that Jefferson Health was exploring moving its headquarters out of Philadelphia.

In its report, Fitch noted that the health network is targeting a four-pillar recovery plan, with a focus on “growth, payer contracting, integration of services, and overall operational improvements in the areas of labor, supply chain and revenue cycle.”

Jefferson Health has about 65,000 employees in Pennsylvania and New Jersey. About 23,000 of them are from LVHN.