Thomas Jefferson University Announces Planned Acquisition of Fox Chase Cancer Center and Health Partners Plan from Temple University

On July 30, 2019, VCBeat (WeChat ID: vcbeat) learned that Thomas Jefferson University plans to purchase the Fox Chase Cancer Center and the Health Partners Plans from Temple University. The two universities stated on Monday that this transaction would bring them closer to their goal of a “transformative partnership.” The boards of directors of both institutions have approved the proposed deal, which has been under negotiation since January of this year. Both parties indicated that they would not finalize the sale price until a formal agreement is signed in the coming weeks.

Jefferson University and Temple University stated that they envision collaborating in the areas of cancer treatment, providing care for underserved populations, scientific research innovation, and expanding educational opportunities for students at both institutions.

The two universities stated that the agreement with the cancer centers would open new avenues for cancer treatment and research, merging two powerful providers: Fox Chase Cancer Center and Thomas Jefferson University’s Sidney Kimmel Cancer Center.

According to data from Modern Healthcare Metrics, Fox Chase Cancer Center’s profit margin has exceeded 10% annually over the past five years, surpassing 14% in 2016. Last year, the hospital reported an operating profit of $38.5 million and operating revenue of $374.5 million.

Once Jefferson University acquires Health Partners Plan, it will collaborate with the plan’s current partner, Einstein Healthcare Network, to provide seamless healthcare services to Medicaid and Medicare Advantage patients in the region. Jefferson University and Einstein are currently working to finalize the proposed merger announced in September 2018.

“Factoring in our pending merger with Einstein Healthcare Network, this unique collaboration with one of the state’s leading universities and health systems will provide a coordinated, accessible, and quality-assured clinical experience for patients across the community, particularly those along the North Broad Street and Center City corridors,” said Dr. Stephen Klasko, President of Jefferson University, in a statement.

Temple University President Richard Englert and Klasko have pledged to collaborate with the deans of their respective colleges to create opportunities for Jefferson University students to access Temple’s expertise in specialized fields, and vice versa.

Earlier this month, four academic healthcare institutions, including Jefferson and Temple, announced plans to collectively acquire the bankrupt St. Christopher's Hospital for Children from American Academic Health System.

“We believe this collaboration marks a new day for healthcare in Philadelphia, especially for the patients we jointly serve,” Englert said in a statement. “Given the various uncertainties that have emerged in the healthcare sector in recent months, we consider establishing this collaborative framework a crucial step for patients, employees, and the public. We are eager to begin our partnership.”

Fox Chase is one of the first cancer hospitals in the United States dedicated exclusively to cancer care, founded in 1904. Scientists at Fox Chase have achieved breakthroughs in cancer prevention, diagnosis, treatment, and survivorship, earning top honors in their respective fields, including two Nobel Prizes. The vision of Fox Chase is to defeat cancer and help those affected by it.

The Sidney Kimmel Cancer Center has been engaged in oncology research, patient care, and cancer education for nearly 25 years. Its vision is to improve the lives of cancer patients and their families in the Philadelphia region and beyond through innovation and breakthrough discoveries.

Thomas Jefferson University is a private health sciences university, established in 1825 and located in Philadelphia, the central city of Pennsylvania, United States.

Temple University, located in Philadelphia, the largest city in Pennsylvania on the U.S. East Coast, was founded in 1884 and is a top-tier public research university with over 130 years of history. Committed to the principle of equal access to education, Temple University is recognized as one of the three prestigious universities in Philadelphia and one of the three major public universities in Pennsylvania.

(Compiled by Tian Shuhang)