Dive Brief:
- Colleges and universities have banded together in consortia to keep down healthcare costs, get discounts for library journal subscriptions, consolidate public safety and share communications infrastructure.
- University Business reports the Boston Consortia has a self-insurance program that stopped Wheaton College’s annual 7% increase in healthcare costs, keeping program expenses flat — and groups like the Greater Western Library Alliance help member institutions use bulk purchasing power to cut as much as 75% off the cost of materials subscriptions.
- Three small, neighboring schools in the Five Colleges, Incorporated, consortia in Western Massachusetts share a single campus police force, pooling resources and intel, while schools in the Ocean State Higher Education Economic Development and Administrative Network can cut costs for internet service while also increasing bandwidth through shared infrastructure.
Dive Insight:
In a time of increasing competition across higher education and, in many areas, shrinking student populations, cost savings are being sought out for all levels of operations. Economies of scale on single, large campuses can help multiple departments or divisions save money by pooling resources like IT. The same concept is true across multiple institutions. The Northeast, especially, is full of small schools with shrinking enrollment. Tuition revenue is down. Figuring out how to collaborate across campuses can prevent the need for mergers or even closures, both of which are expected to happen more often in the coming years.