See how St. Luke’s, LVHN hospitals did financially in 2025

Six of the acute care hospitals operated by Jefferson Health, including three Lehigh Valley Health Network hospitals, spent more money than they brought in during fiscal year 2025, according to a new report from the Pennsylvania Health Care Cost Containment Council.

Both St. Luke’s University Health Network and Jefferson Health overall finished the 2025 fiscal year flush with cash. However, in the case of Jefferson, this was despite the fact that several hospitals, most of which were on the legacy Jefferson side, ended the year millions of dollars in the red.

Jefferson was not alone in this regard; according to the PHC4, 28% of general acute care hospitals in the state posted negative operating margins.

The PHC4, an entity created by the state that analyzes and shares data about health care costs and quality in the state, releases an annual analysis on the financial health of the state’s hospitals. The report for fiscal year 2025 was released on Thursday.

In a statement, Barry D. Buckingham, PHC4’s Executive Director, said the report “offers a comprehensive view of the financial health of Pennsylvania’s general acute care hospitals. These insights give communities across the Commonwealth the tools they need to make informed health care decisions.”

The Morning Call reached out to Jefferson for comment, but did not hear back by deadline.

St. Luke’s reports consistent financials, while Jefferson sees wide disparity

According to the report, Jefferson hospitals fell on both ends of the income spectrum. Lehigh Valley Hospital–Cedar Crest finished fiscal year 2025 with $3.5 billion in net patient revenue and $402 million in net income, with a margin of about 11%. Jefferson Einstein Philadelphia Hospital, however, lost over $101 million,  with a margin of about -13%.

LVH–Cedar Crest had the third-highest income of any hospital in the state; Jefferson Einstein saw the biggest loss of any hospital.

The St. Luke’s hospital with the highest net income was St. Luke’s University Hospital, Fountain Hill, which brought in more than $347 million for the network with a total margin of 22%. It had the fifth-highest total income of any general acute care hospital in the state.

The network’s lowest net income hospital was St. Luke’s Hospital–Carbon, which brought in more than $10 million and had a margin of 10%.

“In recent years, St. Luke’s University Health Network has reported consolidated operating margins of between 2.5% & 3.0%, after factoring in the significant investment necessary to assure a ready supply of providers to support the communities’ healthcare needs. At St. Luke’s, we employ over 2,830 providers and additional support staff whose net cost is not included in the hospitals’ operating margins reported by PHC4,” said St. Luke’s chief financial officer Scott Wolfe.

Grand View Hospital in Bucks County, now St. Luke’s Hospital–Grand View after St. Luke’s acquired it in the beginning of fiscal year 2026, lost the second largest amount of money with a net loss of $77 million and a total margin just above  -29%.

The biggest differences between Jefferson and St. Luke’s were revenue versus expenditures. According to the PHC4 report, the entire Jefferson enterprise generated $10 billion in operating revenue, versus St. Luke’s at about $2.9 billion. However, St. Luke’s finished the fiscal year with $636 million in net income, whereas Jefferson finished with $451 million. St. Luke’s operated hospitals spent comparatively less.

Jefferson publicly acknowledged in October 2025 that it faced financial troubles when it laid off approximately 1% of its total workforce.

Four St. Luke’s hospitals — Anderson, Fountain Hill, Geisinger St. Luke’s and St. Luke’s Easton — had margins greater than 20%, and all hospitals the network operated had margins greater than 10%. All but Carbon were among the top 50 hospitals in the state by operating margin.

On the other hand, only three LVHN hospitals — Pocono, Hazleton and Cedar Crest — along with and Jefferson Lansdale in Montgomery County saw total margins greater than 10%. Of these, Pocono and Hazleton were in the top 50 best margin hospitals.

Jefferson Abington Hospital, Jefferson Health Northeast, LVH-Schuylkill, Jefferson Einstein Montgomery, Jefferson Einstein Philadelphia and LVH-Macungie all had negative total margins for the fiscal year.

However, LVH-Macungie, the network’s first microhospital, had some exceptional circumstances surrounding it. The microhospital, which opened in March 2024, was reported to have lost nearly $6 million, with an operating margin of about -30%. However, PHC4 noted that the facility submitted incomplete or inaccurate data and expenses are usually higher than revenues during the start-up period for a facility.