Hospital 'Separating' From University
Jefferson takes another step forward in the formation of Jefferson Health
System ­p; a new integrated healthcare delivery system ­p; when Jefferson
Hospital formally "separates" from the University corporate structure
and becomes a new corporation called "Thomas Jefferson University Hospital,
Inc. (TJUH, Inc.), with Thomas J. Lewis, as its chief executive officer."
For years, the hospital had been a division of the University corporation,
"Thomas Jefferson University," an entity that will continue.
Creating the new Hospital corporation, which required approval by the Internal
Revenue Service, is in keeping with the partnership agreements between Jefferson
and Main Line Health System that formed the Jefferson Health System (JHS)
a few months ago, explains Lori McLauglin, Esq., assistant counsel, Office
of University Counsel, who is coordinating legal and administrative responsibilities.
Formally adding the hospital, or TJUH, Inc., to JHS will help the hospital
compete in the marketplace. Positioning Jefferson as part of a system with
other service providers who collectively treat significantly larger numbers
of patients enables all members to benefit, explains Ms. McLaughlin. The
hospitals of the Main Line Health System: The Bryn Mawr Hospital, Bryn Mawr
Rehab, The Lankenau Hospital, Paoli Memorial Hospital and Community Health
Affiliates, join Thomas Jefferson University Hospital, Inc. as JHS members.
In addition to obtaining IRS approval of TJUH, Inc. as a new nonprofit corporation,
Jefferson administrators have confirmed that the bond rating of the University
corporation has remained the same. Both Moody's Investors Services and Standard
& Poor's continue Jefferson's very high ratings.
Ms. McLaughlin describes the hospital separation as purely an "operational
and consent phase" in the creation of Jefferson Health System, pointing
out that all governance agreements previously made ­p; academic, transfer
and operating, system affiliation and lease agreements ­p; will remain
"It was a complex and time-consuming task for the hospital to separate
from the University," she adds.
That time involved carrying out numerous responsibilities and tasks by many
employees from several Jefferson departments, especially finance, controller's
office, hospital finance and administration, information systems, accounts
payable, purchasing, human resources and the University Counsel's office.
For the past few months, Ms. McLauglin has coordinated the effort, with
help of the Phase II Implementation Committee composed of senior managers:
John P. Sullivan, associate vice president for human resources; Michael
J. Curran, CPA, associate vice president and controller; David L. Dobbins,
CPA, MBA, associate vice president for physical resources; Mark L. Richards,
CPA, MBA, associate executive hospital director for financial affairs; Susan
Milner, director of space development for patient programs, and Al Giacomucci,
acting director, information systems. John Hoffler, manager, systems support,
controller's office, has provided technical assistance.
Note: For administrative reasons, hospital employees will be "leased"
to TJUH, Inc. until July 1. After then, their paychecks will read "Thomas
Jefferson University Hospital, Inc.," their new employer.