Jefferson South Jersey Hospitals to Exit Horizon Network

Employers with Horizon coverage should check whether their staff rely on Jefferson's three South Jersey hospitals before March 1.

Updated on Nov. 3, 2026 in Healthcare

Jefferson South Jersey Hospitals to Exit Horizon Network

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Jefferson Health's three South Jersey hospitals in Cherry Hill, Stratford, and Washington Township will leave Horizon Blue Cross Blue Shield of New Jersey's network on March 1 if no new contract is reached. Patients can keep in-network care at those hospitals through Feb. 28 under New Jersey law, and operators with employees on Horizon plans should expect coverage disruption to be possible.

Why it matters

The dispute centers on payment rates, with Jefferson saying Horizon pays other New Jersey hospitals 146% more on average for inpatient care and up to 89% more for emergency care. Jefferson has taken a hard line with insurers while absorbing significant operating losses, and Horizon has argued New Jersey members should not pay for Jefferson's losses in Pennsylvania.

The rate gap is reported in each side's own patient materials: Jefferson cites Horizon paying 146% more on average for inpatient care and up to 89% more for emergency care than Jefferson receives, while Horizon projects meeting Jefferson's demands would cost members more than $185 million over three years. Neither figure has been independently verified, and the negotiations remain unresolved.

The players

Jefferson Health

A large Philadelphia-based nonprofit health system operating hospitals across Pennsylvania and New Jersey, currently absorbing significant operating losses.

Horizon Blue Cross Blue Shield of New Jersey

New Jersey's largest health insurer, headquartered in Newark, which negotiates payment rates with hospitals on behalf of its members.

Highmark

A Pennsylvania-based health insurer and integrated health system whose contract dispute with Jefferson's Lehigh Valley network could end on Jan. 1.

The details

Jefferson terminated its contract with Horizon effective Sunday, and Horizon posted a notice online saying so, while Jefferson said Horizon abruptly canceled all negotiation discussions. Under New Jersey law, cancer and psychiatric patients would be able to continue receiving in-network care from Jefferson for a year without a new contract, according to Horizon. Jefferson also issued a notice that its Lehigh Valley Health Network could go out of network with Highmark on Jan. 1, a separate pressure point in its payer dealings.

Sunday: Jefferson's termination of the Horizon contract takes effect.
Jan. 1: Possible out-of-network date for Jefferson with Highmark.
Feb. 28: Last day patients can continue in-network care at the South Jersey hospitals.
March 1: Jefferson's three South Jersey hospitals leave Horizon's network if no new agreement is reached.

Market Landscape

Jefferson's approach mirrors the staged out-of-network moves it made with UnitedHealthcare at Lehigh Valley Health Network last year and this year, now extended to a New Jersey payer. The pattern shows hospital systems increasingly willing to accept network exits rather than accept rate proposals they consider below cost.

Operators who offer Horizon coverage to employees should check whether the three Jefferson South Jersey hospitals are in their staff's regular care network and plan for possible cost or access changes after March 1. Benefits administrators should review plan documents with their insurers or benefits counsel before the Feb. 28 cutoff.

The takeaway

Healthcare purchasers should treat March 1 as a live risk date rather than a settled outcome, since no new agreement has been reached. Benefits teams should confirm which Jefferson facilities their employees use and get a clear answer from their carrier before Feb. 28.

What happens next

The March 1 date is the key checkpoint: if Jefferson and Horizon do not sign a new agreement, the three South Jersey hospitals leave the network that day. Jefferson's possible Jan. 1 exit from Highmark's network is a separate date to track.