Jefferson Health is delaying annual pay raises for more than 42,000 Philadelphia-area employees from January to July, the Center City-based nonprofit said Friday.

The delay was designed to “help us synchronize our financial planning, budgeting and benefits processes by aligning salary increases with our fiscal year,” Jefferson said in an emailed statement.

Jefferson has 32 hospitals and $14 billion in annual revenue, making it the largest nonprofit health system in the Philadelphia area.

More than 23,000 employees at Lehigh Valley Health Network, which includes Jefferson purchased in Augustis not affected by the change.

The 3 percent pay increase planned for July 1 will not be retroactive to the beginning of the year, according to guidance provided to managers. They were told of the change before the message from Lisa Satterson, Jefferson’s chief human resources officer, was sent to all employees.

“We realize this news may come as a surprise and want to acknowledge that the decision was not taken lightly,” Satterson’s email said. “Our goal is to ensure the long-term stability and health of the organization while continuing to support our Jefferson colleagues.”

It’s unclear how much the delay would save Jefferson. effectively broke even in fiscal year It ended on June 30. This will boost financial results for the current fiscal year ending June 30.

” READ MORE: Most nonprofit health systems in Philadelphia improved financial results in fiscal 2024

Announcement of schedule change for annual increases comes with Jefferson’s decision Completed $1 billion bond refinancing this month. The bulk of those proceeds were used to refinance Lehigh Valley debt.

Jefferson’s bond offering announcement also said it plans to expand the emergency department of its flagship Thomas Jefferson University Hospital as part of $530 million in capital projects.

Such capital projects are paid for through financial channels other than salary increases and are essential to our growth, competitiveness and sustainability, the frequently asked questions document provided to executives said.