Dive Brief:
- Philadelphia University and Thomas Jefferson University will join forces in a merger that marks the third for Jefferson since 2013 — the other two were with hospitals.
- Philly.com reports that the two schools will spend the next three years transitioning, during which time there will be no name change, though it will eventually become clear Philadephia is a part of Jefferson.
- Thomas Jefferson University President Stephen Klasko will run the organization while Philadelphia’s president takes a position on Jefferson’s board and chairs a new academic oversight board.
Dive Insight:
The two institutions plan to focus their programs on “real-world problems,” capitalizing on the respective schools’ areas of expertise. Mergers are expected to become more common in the coming years as colleges and universities struggle with enrollment and finances. Moody’s Investors Service predicts the annual pace of mergers will double in this timeframe. Moody’s upgraded its outlook for the education sector to “stable” in July, but said regional public universities and small private colleges are the ones most likely to remain under financial strain.
In these circumstances, the idea of a merger or a strategic partnership between institutions is a way to keep a struggling school alive. The key is to consider such options before closure is imminent and sinking schools have little to offer potential partners.