Feb. 17, 2021
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Volume CII
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Est. 1929
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www.sjuhawknews.com
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The Student Newspaper of Saint Joseph’s University
University signs letter of intent to explore merger with
USciences
A man runs past the McNeil Science and Technology Center, at the University of the Sciences, towards 43rd Street on Feb 14. PHOTOS: MITCHELL SHIELDS ’22/THE HAWK
St. Joe’s signed a letter of intent on Feb. 10 to evaluate a merger with the University of the Sciences. In a Feb. 10 announcement to the campus community, St. Joe’s University President Mark C. Reed, Ed.D., said St. Joe’s will “undertake exclusive discussions to fully evaluate the benefits” of merging with USciences. Founded in 1821 as the Philadelphia College of Pharmacy, USciences is located on a 24–acre campus in West Philadelphia. The discussions between the two universities began last summer and have been ongoing among top leaders at each university, according to Cheryl McConnell, Ph.D., provost and vice president for Academic Affairs. Those individuals were under a nondisclosure agreement until the letter of intent was signed on Feb. 10. McConnell clarified that a letter of intent to consider a merger is not a final definitive agreement to merge. “There’s a period of due diligence and a period of negotiation, and that’s where we are now,” McConnell said. “It hasn’t been finalized, and then once we do decide to move forward, if we do decide to move forward, then there’s an integration process. I would imagine it’s going to take several months to do a full evaluation of the opportunity.” While the news came as a surprise to many people at both institutions, Reed hinted at the university’s openness to a
merger last October in an interview with the Philadelphia Business Journal. “You can start the programs from scratch. You can acquire them. You can merge with another institution,” Reed said in the Oct. 29 article. Reed’s interview created a buzz among community members, and Reed followed with a Nov. 2 announcement to the university community in which he reflected on the institution’s progress despite the pandemic. “Although the pandemic has had an impact on all of us and will for some time, we remain ever-committed to the long view,” Reed wrote. “This includes a multipart strategy to maintain our financial strength, to increase our academic quality and programming, enhance our campus experience and deepen our focus on diversity, equity and inclusion.” McConnell said the possibility of a merger, while “an incredible challenge,” is an exciting opportunity that would open up new academic opportunities for students at both institutions. “Imagine the combination programs we could have. It opens up brand new academic programs that really can be tightly aligned and cut down the cost and the time to completion for students. That’s a real tangible benefit for students,” McConnell said. “On the new sciences side, we offer so many more programs on the undergraduate level that [students] could take advantage of. The tangible benefits are extraordinary.” USciences has three colleges, two of which focus on health and medicine: the Philadelphia College of Pharmacy and the
Samson College of Health Sciences. Within these colleges, USciences offers multiple majors not currently offered at St. Joe’s, including exercise physiology, occupational therapy and physical therapy. USciences’ third college is the Misher College of Arts and Sciences. USciences President Dr. Paul Katz wrote in a Feb. 10 email to USciences faculty and staff that a multitude of external influences prompted university officials to further explore the opportunity to merge with St. Joe’s. “Over the past decade, higher education in the U.S. has been in a state of accelerating disruption,” Katz wrote. “The ongoing coronavirus pandemic has magnified the impact of these changes on colleges and universities. To meet the demands of a rapidly changing environment, we must think creatively and act boldly to optimally position our University for the future.” The Hawk requested interviews with Reed and Katz. Both universities declined to grant that request. Guilbert Hentschke, Ph.D., dean emeritus of the University of Southern California and author of “Management Operations in Education,” said institutions of higher education have specifically been facing lower enrollment rates and the rates of demographics feeding into universities are down. These external factors can contribute to a university’s decision to explore a merger. In a December 2020 report from the National Student Clearinghouse, overall national postsecondary enrollment fell by 2.5%, which was driven by a decline in
undergraduate enrollment nationwide by 3.6% in 2020. St Joe’s enrollment, in particular, dropped from 8,415 in the fall of 2016 to 7,362 in the fall of 2019. Enrollment last fall then dropped by almost 600 more students, according to Inside Higher Ed. Hentschke said the coronavirus pandemic compounds the negative effects of these disruptive factors by causing both shocks to a university’s revenue and expense streams. The volatility of the higher education system has affected the rates of mergers as universities are looking to plan ahead for the very near future as well as develop a sustained future for the institution. “What you really have is an acceleration of mergers which was quiet before,” Hentschke said. “I’m not saying you contribute this all to the pandemic. But in higher ed, it’s gone from this mentality of [looking at] year to year budgets to now looking much more at both a week to week and decade to decade [budget].” Hentschke said there are multiple factors that go into assessing the benefits and drawbacks of merging with another institution, which include factors like geography between the two institutions, program opportunities and possible cost savings. Over time, merging has become more of a strategic plan for many universities for these reasons, Hentschke said.
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