In recent years, the higher education sector has experienced a notable increase in institutional closures and mergers. As early as 2014, Harvard Business School professor Clayton Christensen predicted that up to 25% of colleges could face consolidation.
A decade later, that prediction is proving accurate as more institutions struggle to stay viable in a changing landscape. Since March 2020, at least 73 public or nonprofit colleges have closed, merged, or announced plans to do so, impacting approximately 46,650 students.
Several forces are driving this trend, including declining enrollment, financial challenges, and demographic shifts.
At the same time, increased competition from online programs, industry-recognized credentials, and a resurgence of interest in the trades and vocational training is reshaping student choices, making it harder for traditional universities to attract and retain learners.
University partnerships are not new, many institutions work with external partners to expand access to education through online program management (OPM) arrangements. But today’s challenges demand more than traditional solutions.
The next wave of university partnerships is centered on unique, differentiated education models, ones that don’t just scale programs but transform them.
Institutions need partners who bring innovation, industry alignment, and operational expertise to help them stand out, create financial sustainability, and equip students with workforce-ready skills.
How University Partnerships Have Traditionally Worked
University Partnerships have long provided institutions with external expertise and operational support to expand their reach and improve student outcomes.
While these collaborations take many forms, they typically focus on areas where universities lack the internal capacity or resources to scale effectively.
Many institutions turn to external partners not only for specialized expertise but also to secure funding and accelerate program launch timelines. This allows them to get up and running more quickly and efficiently.
Historically, university partnerships have helped institutions in key areas such as:
- Program Management: Supporting universities in launching and running online degree programs, including marketing, recruitment, instructional design, and student support.
- Continuing and Professional Education: Expanding non-degree offerings like bootcamps, certificate programs, and workforce training.
- Student Enrollment & Marketing: Providing expertise in digital marketing, lead generation, and enrollment strategies to attract and retain students.
- Technology & Infrastructure: Offering platforms for learning management systems (LMS), virtual labs, and student engagement tools.
- Career & Workforce Alignment: Partnering with employers to integrate experiential learning, apprenticeships, or career services into academic programs.
- Clinical & Experiential Learning: Facilitating placements for clinical rotations, practicums, and hands-on training.
- Accreditation & Regulatory Support: Assisting universities in navigating the complex accreditation process for new programs, ensuring compliance with state, regional, and professional standards.
The Next Wave: Industry-Driven
The next generation of university partnerships is shifting from broad, one-size-fits-all solutions to industry-driven, market-tested models that directly address workforce needs.
Instead of universities working in isolation or relying solely on outside firms to expand programs, these partnerships start with the industry itself—aligning education with real-world demand and ensuring that graduates are prepared for in-demand careers.
Starting with Industry Needs
Many sectors, particularly health care, are facing talent shortages and rapidly evolving workforce demands.
The next wave of university partnerships focuses on co-creating solutions with industry stakeholders—employers, health care systems, and professional organizations—who have a vested interest in developing a highly skilled pipeline of professionals.
In a webinar with Evidence In Motion, Wilson College President Wesley Fugate emphasized this imperative:
“We knew immediately that we had to make strategic decisions to not only survive but thrive through the COVID pandemic and the upcoming demographic cliff. That eventually led us to these graduate health care programs.”
A Modern, Market-Tested Delivery Model
Beyond industry alignment, these partnerships rely on delivery models that are not only proven but also adaptable.
Programs must balance rigor and flexibility by providing an education format that meets the needs of today’s learners—often working professionals—without sacrificing quality or accreditation standards.
One example is hybrid accelerated education, a model that blends online coursework with in-person clinical or hands-on training. Unlike traditional full-time residential programs, this approach allows students to learn in a way that fits their schedules while still gaining practical experience.
By leveraging technology, strategic clinical placements, and an efficient curriculum design, this model has been tested and refined to optimize student success while maintaining accreditation and industry standards.
What Universities Should Look for in a Modern Partnership
As institutions navigate increasing financial pressures and shifting student demands, choosing the right university partnership is more critical than ever.
A modern, high-impact partnership should offer more than just outsourced services—it should provide strategic alignment, long-term sustainability, and a proven model for student success.
Here are key factors universities should consider when evaluating a potential partner:
- Industry Alignment: Does the partnership address workforce needs and provide clear pathways to employment? Programs designed with direct input from industry stakeholders are more likely to attract students and produce career-ready graduates.
- Scalability and Sustainability: Is the model adaptable for future growth, or is it dependent on short-term enrollment gains? Universities should seek partners who invest in long-term success, not just short-term revenue.
- Proven Educational Model: Has the program design been tested and optimized for student success? Models like hybrid accelerated education provide flexibility while maintaining accreditation and high-quality outcomes.
- Financial Transparency: Does the financial structure support the university’s long-term goals? Fee-for-service and hybrid models provide more institutional control, while revenue-share models require careful evaluation of long-term financial implications.
- Comprehensive Support: Beyond launching programs, does the partner offer wraparound services such as accreditation guidance, student support, and clinical or employer connections?
When evaluating university partners, Wilson College President Fugate spoke to the appeal of working with an industry-connected partner:
“We looked at other organizations that might be able to do this work, but frankly, they weren’t focused on health care. They were focused on all kinds of other programs. And this was exciting to us to be working with a company that began their work doing professional development for physical therapists. There was access to clinical sites. Clinical sites have been really challenging for us on the nursing front, and so that was a big hurdle for us to be able to overcome.”
By focusing on partnerships that drive innovation, align with industry demand, and provide financial sustainability, universities can position themselves for long-term success—ensuring they remain competitive in an evolving higher education landscape.
TL;DR: The Future of University Partnerships
Traditional university partnerships—such as online program management (OPM) and fee-for-service models—have helped institutions expand access, but the next generation of partnerships must go further.
The future of university collaboration lies in industry-driven, market-tested models that align education with workforce needs. These partnerships don’t just scale programs—they transform them, ensuring graduates are career-ready and institutions remain financially sustainable.
Key takeaways:
- Industry Alignment Matters: Universities should partner with employers and industry leaders to design programs that address real-world workforce demands.
- Modern Delivery Models Are Essential: Hybrid accelerated education blends flexibility with rigorous, hands-on learning to meet the needs of today’s students.
- Financial Sustainability is Critical: Institutions must choose partnership models that offer long-term viability, not just short-term enrollment boosts.
The institutions that embrace strategic, industry-aligned partnerships will be best positioned to thrive in an evolving higher education landscape.