As students increasingly turn to their laptops instead of lecture halls, universities are facing a pivotal question: How can they compete in the digital age without compromising their values – or their finances?
Enter the world of Online Program Management (OPM) companies, the behind-the-scenes architects of many of America's online degree programs. These strategic partners promise to help universities navigate the complex landscape of online education, offering everything from marketing expertise to technological infrastructure.
But as the industry faces unprecedented scrutiny, some are asking whether these partnerships are a lifeline for struggling schools or a Faustian bargain.
"We're at a critical juncture," says Pradeep Khandelwal, CEO of Evidence In Motion (EIM). "The question isn't just about online versus on-campus anymore; the challenge now is how to disrupt traditional curricula to address job market gaps. This requires partners who can provide advanced technology and subject matter expertise to make quality education more accessible, especially in high-demand fields."
Recent Events in the OPM Industry
Recent events have thrust the OPM industry into the spotlight. A high-profile bankruptcy and a state-level regulatory crackdown have created significant challenges for the sector. As state legislatures and federal regulators take a closer look, the future of these partnerships remains uncertain.
For small to mid-size universities—many of which are today regionally focused—the allure of OPMs is clear. These companies offer a compelling proposition: the ability to launch sophisticated online programs without significant upfront investment.
But critics argue that the revenue-sharing models common in the industry can create perverse incentives, prioritizing enrollment numbers over student success.
As the debate rages on, one thing is clear: the landscape of higher education is changing rapidly. The decisions made today will not only reshape classrooms—virtual and physical—but will also further transform higher education's role in preparing individuals for the workforce.
Ethics and Student Success in OPM Partnerships
At the heart of the OPM debate lies a fundamental question: can the profit motive coexist with the conventional role of higher education? Critics argue that revenue-sharing models incentivize aggressive enrollment practices at the expense of student outcomes. It's a charge that many in the industry take seriously.
"We believe that appropriate guardrails should exist," Khandelwal states. "For example, measures related to employability and the ability to overcome student debt within a reasonable period of time and cost."
But Khandelwal pushes back against broad-brush criticisms. "EIM has intentionally taken a specific focus to support programs where graduates are more than likely to earn at least $75,000[1] annually," he explains. It's a strategy, he argues, that well balances the interests of the company, the university, the student, and the broader needs of society.
Recent Regulatory Actions
Recent regulatory actions, like Minnesota's law restricting revenue-sharing agreements for publicly funded universities, have sent shockwaves through the industry. But many argue such measures may be too blunt of an instrument.
"These restrictions unintentionally place even more pressure on institutions," Khandelwal contends. "The power of partnerships lies in their ability to allow institutions to take risks and innovate with new methods of learning. By limiting options, we're potentially denying students access to high-quality programs."
As scrutiny over revenue-sharing agreements intensifies, questions about the sustainability of the traditional OPM model have emerged.
Khandelwal acknowledges the industry's missteps but argues that when applied judiciously, the model remains viable and essential.
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The End of OPM?
As pressure mounts, the industry is evolving. Some companies are distancing themselves from the OPM label, seeking a different narrative and label to reflect a more nuanced approach to university partnerships.
"We're rooted in academics, specialize in health care, focus on hybrid learning models, and maintain strong industry connections," Khandelwal explains. It's a model, he argues, that goes beyond simply moving classes online.
Scott Mayo, Chief People Officer at Confluent Health, EIM's parent company, underscores this point. "The demand for qualified physical therapists has never been higher and continues to grow every year to accommodate half of the U.S. population, nearly 150M people, who are or will experience a musculoskeletal (MSK) condition”.
He continues, “Confluent Health currently has more than 250 open PT positions across our nationwide network. EIM ensures we have access to highly skilled professionals ready to make an immediate impact in patient care in the MSK solutions space."
Future Opportunities and Challenges
Despite the headwinds, many in the industry see significant growth potential, particularly in health care education. "We don't think that graduate programs or health care professionals are going to have any shortage of demand," Khandelwal predicts. "What we need is more people in these fields tomorrow, and to find those people, we have to consider launching more hybrid accelerated programs."
However, the need goes beyond just filling seats in classrooms. "Health care technology and techniques are advancing at a rapid pace," Khandelwal continues. "Look at how fast a COVID-19 vaccine was produced. This pace of innovation demands educational programs that can keep up, quickly integrating what's happening in the field and adapting curricula accordingly."
Yet, challenges loom. Regulatory threats remain the most significant hurdle facing the industry. "It's the belief that private business can be in the field of education without sacrificing quality," Khandelwal explains. "This question isn't unique to higher ed; it's also debated in primary and secondary education with charter and private schools."
The key to navigating these challenges, Khandelwal argues, lies in building trust through tangible results and industry alignment. By demonstrating a commitment to long-term student success and industry needs, university partners can collaborate with regulators, helping to establish relevant oversight that enables productive and high-quality higher education partnerships.
A Path Forward for Universities and Partners
As universities navigate this complex landscape, careful partner selection is crucial. Khandelwal advises institutions to consider partnerships for every program they're looking to launch or for existing programs that aren't financially successful.
"Partnership should not be seen as outsourcing," he emphasizes. "It should be seen as supporting universities in their mission to educate and prepare students for successful careers."
When selecting a partner, institutions should look for focused expertise, a strong academic foundation, and a track record of successful program launches. As the industry continues to evolve, these partnerships will likely prove essential in addressing critical workforce needs, particularly in high-demand fields like health care.
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