https://seekingalpha.com/news/3610215-grand-canyon-education-pushes-higher-after-disclosing-valpo-mou
Knee jerk reaction without any further information, thought, analysis, or details: THIS IS NOT A GOOD IDEA
Paul
I'm sure more information will be available in short order, but my first impression is extremely positive. In fact, this could position Valpo on the cutting edge of hybrid learning experiences relative to nursing and graduate programs:
https://www.youtube.com/watch?v=NE5kk0zIwEk
I see that one of Orbis' 25 university partners in Marian University in Indy. Marian's website promotes an accelerated BS in Nursing for non-traditional students looking to make a career change. They also have sites in multiple cities under their university umbrella. Obviously, Orbis is providing a ton of back room services to make this happen, but it's totally seamless.
https://onlineabsn.marian.edu/indianapolis/
From Orbis website:
Our Solution for Universities
Your program. Your standards. Our expertise.
Enrollment Growth
Growing your healthcare degree programs to meet market demand is possible. Orbis helps university partners increase enrollment levels from a class average of 30+ students once a year to classes of 70+ students three times a year.
https://orbiseducation.com/the-orbis-solution/universities/
Any business relationship with an inherently corrupt organization like Grand Canyon is seriously wrong. I have posted details of major issues with their CEO, CFO and their corporate structure with GCU multiple times on this website, so I will not repeat them here. Valparaiso is a great institution that should not get mixed up with a such a fraudulent enterprise.
I hope your negativity toward GCU is more than that they are a profit based institution. ANd regarding corruption, there are many many mainstream universities that are not exactly honorable. Look at USC with the varsity blues scandal! Michigan State with the gymnastics doctor! SMU football scandal! Joe Paterno! The list goes on.
I am not getting why GCU is so awful.
Quote from: vu84v2 on September 01, 2020, 02:33:49 PM
Any business relationship with an inherently corrupt organization like Grand Canyon is seriously wrong. I have posted details of major issues with their CEO, CFO and their corporate structure with GCU multiple times on this website, so I will not repeat them here. Valparaiso is a great institution that should not get mixed up with a such a fraudulent enterprise.
Apparently, Loyola University Chicago and Xavier University missed the memo about Grand Canyon being inherently corrupt. They are already partner universities that Valpo will be joining.
Just to start, when they attempted to have GCU be declared a "non-profit", GCE (the remaining for profit enterprise) tried to move various liabilities on to GCU's books so that GCE's books looked better. If that sounds familiar, it should - that is similar to what Enron did. Additionally, GCE forced GCU to agree to buy a huge volume of services for 15 years (with massive penalties for leaving the contract early) from GCE at a price set by GCE. Keep in mind, too, the the CEO of GCE is the President of GCU. Who called this unacceptable? The U.S. Dept. Education in the last few years.
Then there is the CEO (Mueller) and CFO (Bachus). Both were previously with Apollo Group (University of Phoenix) - Mueller as COO and Bachus as Chief Accounting Officer. Bachus was forced to resign (i.e. fired) due to options fraud. When Mueller became CEO of GCE, he hired Bachus as CFO. Bottom line: the C-level officers are rotten to the core, which means that any dealings with them and the company are highly questionable.
See: https://citronresearch.com/wp-content/uploads/2020/01/LOPE-The-Educational-Enron.pdf
usc4valpo - are you saying that corruption and fraud are OK because other people/institutions have done fraudulent and corrupt things?
I realize that it may make sense to partner with a company that provides online services that are expensive or non-feasible for Valpo to develop (though any de-emphasis of quaity in-person teaching by Valpo will be the death of the university). There are many other companies that have made their pitch to Valpo , some of which I have heard are very good.
Quote from: wh on September 01, 2020, 03:13:39 PM
Quote from: vu84v2 on September 01, 2020, 02:33:49 PM
Any business relationship with an inherently corrupt organization like Grand Canyon is seriously wrong. I have posted details of major issues with their CEO, CFO and their corporate structure with GCU multiple times on this website, so I will not repeat them here. Valparaiso is a great institution that should not get mixed up with a such a fraudulent enterprise.
Apparently, Loyola University Chicago and Xavier University missed the memo about Grand Canyon being inherently corrupt. They are already partner universities that Valpo will be joining.
First, an MOU is not a contract. Furthermore, I do not see an announcement from Valpo (it is a bit odd that one party would announce an MOU with the other party saying nothing). And beyond that, we're not lemmings.
Ok, I get it.
Perfectly fine with this on my side. I assume that there is a cost savings to leveraging their technology, and it allows for Valpo to reach more students in an uncertain future. We have to adapt. Schools are now competing with boot camps of various skill sets, and this youngest generation doesn't view a 4 year onsite college experience as a natural progression, as much as prior generations did.
Quote from: valpotx on September 01, 2020, 06:55:13 PM
Perfectly fine with this on my side. I assume that there is a cost savings to leveraging their technology, and it allows for Valpo to reach more students in an uncertain future. We have to adapt. Schools are now competing with boot camps of various skill sets, and this youngest generation doesn't view a 4 year onsite college experience as a natural progression, as much as prior generations did.
All of these are to varying degrees debatable, but your conclusion about needing to partner in some way is true. I am not saying don't partner with anyone...I am saying don't partner with GCE. There are other good companies that are more worthy partners (and I have no stake in this...I just want what is best for Valpo).
Grand Canyon Education announces MOU with Valparaiso U
"The proposed Valparaiso deal isn't so extensive, but Urdan said it is still meaningful for GCE because of the Indiana university's strong brand and regard. "In terms of (GCE's) ability to win other work and strike other contracts, I think it's a home run," he said."
https://www.educationdive.com/news/grand-canyon-education-announces-mou-with-valparaiso-u/584529/
Quote from: wh on September 01, 2020, 08:13:51 PM
Grand Canyon Education announces MOU with Valparaiso U
"The proposed Valparaiso deal isn't so extensive, but Urdan said it is still meaningful for GCE because of the Indiana university's strong brand and regard. "In terms of (GCE's) ability to win other work and strike other contracts, I think it's a home run," he said."
https://www.educationdive.com/news/grand-canyon-education-announces-mou-with-valparaiso-u/58452
wh - Thanks for posting this information.
This may be nothing, but there is something really odd here. I have negotiated MOUs and contracts, and I have done public announcements of MOUs and contracts (again, an MOU is not a binding contract in any way, shape or form). And I have seen a lot of these done between companies in which I had business relationships. And in all that time, I have never seen one party make a public announcement of an MOU or contract without the other party.
In looking at this, Orbis (now owned by GCE) seems to have particular expertise in developing online programs in nursing. That Orbis is a for-profit entity should not be surprising, as I can't imagine a non-profit working to develop a similar offering.
Valpo has made investments in its nursing programs, so to partner with an outside firm to enable online offerings seems logical.
Two more quick notes: In addition to partnering with Loyola and Xavier, Orbis also has partnerships with Marquette, Northeastern, Concordia-St. Paul and Concordia Texas https://orbiseducation.com/partners/ (https://orbiseducation.com/partners/). So Valpo's partnership is with a firm that is already partnered with many other leading universities.
Second, as GCE is a publicly-traded firm, it filed an 8-K to disclose the MOU with Valpo. Given that it will take some time to develop the online programs, my guess is the Valpo would want to wait until the offerings are ready to make a big announcement.
Quote from: valpo95 on September 02, 2020, 08:29:18 AM
In looking at this, Orbis (now owned by GCE) seems to have particular expertise in developing online programs in nursing. That Orbis is a for-profit entity should not be surprising, as I can't imagine a non-profit working to develop a similar offering.
Valpo has made investments in its nursing programs, so to partner with an outside firm to enable online offerings seems logical.
Two more quick notes: In addition to partnering with Loyola and Xavier, Orbis also has partnerships with Marquette, Northeastern, Concordia-St. Paul and Concordia Texas https://orbiseducation.com/partners/ (https://orbiseducation.com/partners/). So Valpo's partnership is with a firm that is already partnered with many other leading universities.
Second, as GCE is a publicly-traded firm, it filed an 8-K to disclose the MOU with Valpo. Given that it will take some time to develop the online programs, my guess is the Valpo would want to wait until the offerings are ready to make a big announcement.
I think this has more (?) to do with the business school, at least that is what the announcement said "for Grand Canyon's online program management business". Later it refers to nursing "the agreement also calls on Grand Canyon's Orbis Education subsidiary to help establish and manage online and ground-based nursing and related healthcare programs"
Quote from: valpo95 on September 02, 2020, 08:29:18 AM
In looking at this, Orbis (now owned by GCE) seems to have particular expertise in developing online programs in nursing. That Orbis is a for-profit entity should not be surprising, as I can't imagine a non-profit working to develop a similar offering.
Valpo has made investments in its nursing programs, so to partner with an outside firm to enable online offerings seems logical.
Two more quick notes: In addition to partnering with Loyola and Xavier, Orbis also has partnerships with Marquette, Northeastern, Concordia-St. Paul and Concordia Texas https://orbiseducation.com/partners/ (https://orbiseducation.com/partners/). So Valpo's partnership is with a firm that is already partnered with many other leading universities.
Second, as GCE is a publicly-traded firm, it filed an 8-K to disclose the MOU with Valpo. Given that it will take some time to develop the online programs, my guess is the Valpo would want to wait until the offerings are ready to make a big announcement.
valpo95 - Thanks. I have posted the 8-K disclosure below.
While I have a real problem with entering into agreements with another company or organization who has a fraudulent history, I agree that a vendor who provides services to support and manage hybrid/online programs would need to be a for-profit company. My problem is with GCE being selected...and there are other good companies who do the same thing. Additionally, despite the 8-K filing (which was probably required by law), it is still odd that a company would make an announcement of any sort of agreement without the other party being included in the announcement. GCE/Orbis not only filed an 8-K disclosure, they made a separate announcement.
--------------------------------------------------------------
Entry into Memorandum of Understanding with Valparaiso University. On August 28, 2020, Grand Canyon Education, Inc., a Delaware corporation (the "Company"), entered into a Memorandum of Understanding (the "MOU") with Valparaiso University, a private nonprofit university located in Valparaiso, Indiana ("Valpo"). The MOU describes the key terms of two agreements that the parties propose to enter into with one another:
(i) Under a services agreement between the Company's Orbis Education subsidiary and Valpo, Orbis Education would assist Valpo in establishing and managing hybrid (online and ground-based) nursing and related healthcare programs of Valpo at two sites located in the Midwest United States. The terms of this agreement would be generally consistent with those that have been entered into with Orbis Education's other 25 university partners.
(ii) Under a separate services agreement between the Company and Valpo, the Company would assist Valpo in creating and managing certain online graduate programs (the "Graduate Programs"). The key terms of this agreement, including the term and fees, remain to be negotiated.
The MOU is non-binding, the obligations of the parties to effect a relationship based on the terms described above are subject in all respects to the negotiation, execution, and delivery of mutually acceptable definitive agreements, and no assurance can be given that such agreements will be entered into.
I think this has more (?) to do with the business school, at least that is what the announcement said "for Grand Canyon's online program management business". Later it refers to nursing "the agreement also calls on Grand Canyon's Orbis Education subsidiary to help establish and manage online and ground-based nursing and related healthcare programs"
[/quote]
You might be right, but I think that they were referring to their (GCE's) business of program managing online programs.
What do I make of this?
It does seem that Valpo is entering this MoU in a cautious way while Orbis, a division of GCE, is trying to advertise that they have signed up with another prestigious university, Valpo. Let's observe the changes of this endeavor as it progresses.
As an example, here is another company (for profit) offering these services that has partnered with many prestigious universities. www.noodlepartners.com. My understanding is that they have met with and presented their solutions to Valpo.
Another story on the subject:
https://www.educationdive.com/news/grand-canyon-education-announces-mou-with-valparaiso-u/584529/
The cautions do loom in aligning here. But Valpo has to go big somehow.
Obviously GCE benefits from high-prestige client lists. This GCE guy is a visionary, like him or not. He probably sees (beyond others) the visibility Bryce will bring to the GCU brand and that will bounce the GC name around even more widely in the D-1 level among potential clients.
As the old proverb goes, "Beggars (Valpo) can't be choosers." Valpo has to expand its reach ...fast.
Isn't this sort of thing what happened when Purdue bought Kaplan? It is the future.
https://www.washingtonpost.com/news/grade-point/wp/2017/04/27/purdue-acquires-for-profit-kaplan-university/
Didn't Concordia Portland do something like this with disastrous results?
Quote from: mj on September 02, 2020, 09:44:26 PM
Didn't Concordia Portland do something like this with disastrous results?
Concordia Portland had an ill-conceived contract with a group called HotChalk - it brought in thousands of additional students, yet seemed like a short-term band-aid to the University. The revenue went to Concordia, then they had to pay big expenses to HotChalk. Part of the reason this was that Concordia got some additional earnings in the short term, yet the bulk of the profits went elsewhere, and the long-term contract seemed very favorable to HotChalk.
That said, there are many other examples of for-profit and not-for-profit partnerships that are true partnerships, where there are real benefits for both parties and also have a good educational experience for the students.
I just don't see it possible for a school like Valpo to make the kinds of financial commitments in technology, platforms and marketing to do online programs without an outside partner. So, the real question is which partner makes sense, and we can hope that Valpo did its due diligence in this circumstance.
I'm not happy that Valpo is going in this direction. Valpo's reputation is one of its most valuable assets and I worry it's at risk. Look what happened to the law school. It chased easy money by increasing enrollment and admitting unqualified students. The reputation of the school plummeted until it was forced to close.
I realize the current situation might be driving Valpo's decision making here. But then I think how we're feeling pressure to do so because of the financial situation of the university. VU extended itself financially and went on a building spree because Heckler thought we could get up to 6,000 students. It's becoming obvious that was a mistake.
QuoteOrbis Education would assist Valpo in establishing and managing hybrid (online and ground-based) nursing and related healthcare programs of Valpo at two sites located in the Midwest United States.
The reference to two sites also caught my eye. Is that two additional sites not on campus? If so, I'm not thrilled about creating satellite campuses.
As a member of the local community, I see this as a potential bridge to bring Valparaiso University and the community at-large in NWI together for the first time ever. Suddenly, non-traditional students will have a local option other than PNW or IUN to finish their education. While I'm sure that Valpo's tuition will be more, they will offer more flexible, accelerated hybrid/online options. I also think many local students will see a Valparaiso University degree as more prestigious than a state extension school degree. Moreover, Valpo's campus is more attractive, it has a D-a basketball program, national reputation and standing, etc. The more local students, the more local alumni, the more the bridge grows. Well, you get the point...
Quote from: mj on September 03, 2020, 08:10:03 AM
The reference to two sites also caught my eye. Is that two additional sites not on campus? If so, I'm not thrilled about creating satellite campuses.
I think the College of Nursing has partnerships with institutions in St. Louis, Ft. Wayne and Cleveland - not sure if these are hospitals or health systems, yet it is possible they have satellite programs where nursing students can complete their practicums and/or register for a course that is not taught in residence in Valparaiso.
Ahead of the curve:
"Purdue University Global"
https://youtube.com/watch?v=IAXiyqWwI_M&feature=share
https://youtube.com/watch?v=O1XBFTkf_yQ&feature=share
The clock is ticking...
Grand Canyon Education (LOPE) Q4 2020 Earnings Call Transcript (2/17/21)
"We continue to have conversations with Valparaiso, but due to recent changes in administration, the completion of the contracts have been delayed. We are excited to have signed an LOU similar to the one with Valparaiso with another university and have reached verbal agreements on the structure of the healthcare and non-healthcare components, which include a revenue share arrangement for the healthcare component, consistent with our other healthcare partners, and a cost-plus component to provide services for some of their graduate online programs."
Interesting Q&A re. the changing education marketplace.
https://www.google.com/amp/s/www.fool.com/amp/earnings/call-transcripts/2021/02/17/grand-canyon-education-lope-q4-2020-earnings-call/
While I have no way of knowing what specifically is going on between GCE and Valparaiso, my hope is that this indicates that Valparaiso is moving towards a partnership/agreement with another OPM. It is important to note that the comment from GCE's CEO is not in response to a question, but was voluntarily offered by the CEO. That means that GCE wanted to make this statement and point out that it has another deal - which may mean that they are trying to manage analysts perceptions regarding a lost deal with Valparaiso.
A few other comments:
-In reading through the script from the analyst call, it is clear that GCE views GCU as part of GCE. Yet, at the same time they make GCU purchase a wide range of services at the prices which GCE wants it to pay, while reporting GCE as a separate publicly traded company. This is akin to Enron, in which shell companies were created to inflate the parent company's financial results. And remember, Brian Mueller is the CEO of GCE AND the President of GCU - which means that he can tell GCU what terms they must accept from GCE.
-The two principals from GCE in the analyst call, Brian Mueller and Dan Bacchus, are the two people who have perpetuated the fraudulent structure and actions of GCE.
So now that we're well over a year past this...what came to pass with this? Did the deal fall through completely, or was it just a way to increase the number of potentials in health fields that weren't able to attend in person classes while home with kids who were working remotely, while schools were closed, or limiting in-person attendance?
I believe this is one of the first things that Padilla pulled the plug on? I believe the reasoning was it would be better to do a handful of on-line programs well in house that served the needs of our local community than try to become a university with a larger on-line component. Hence the Occupational Therapy Doctorate and the on-line RN to BSN program.
I'm glad that grandiose plans to create all of these online programs were put to rest.
As I just said in another thread, this gambit would make VU look more like one of those high-volume, for-profit universities, peddling a large suite of online degree programs to generate revenue.
I agree that a better approach is to develop a handful of distance learning programs drawing on existing strengths. The flexible MBA program, built around a "values-based" leadership theme, is a good example of that.