Kettering College: The Challenge of Accreditation and CMS Funding

Kettering College (KC) is accredited by the North Central Association of College and Schools (NCA), which is one of six regional institutional accreditors in the United States. The commission of NCA overseeing Kettering College is The Higher Learning Commission (HLC).

The HLC is requiring Kettering College (and all colleges) to become separately (distinctly) incorporated from their parent organizations. The reason for this is that some for-profit schools have failed to demonstrate appropriate independence from their parent organizations and have been sending revenue from tuition to the parent organization for use on non-educational purposes. The federal government has been instrumental in pushing the regional accrediting bodies to correct this situation.

KC is currently (and since inception) not separately incorporated from Kettering Medical Center (KMC). The new HLC requirement for KC to separately incorporate creates a significant problem: the end of CMS funding related to the function of the college. Each year, KMC receives significant CMS reimbursement in order to operate a health sciences-based college. This funding is provided for the same reason that CMS funds physician Graduate Medical Education: to relieve the critical shortage of health care professionals that serve millions of Americans in our nation’s health care system. CMS regulations currently would require suspension of this funding under a separate incorporation model.

As a not-for-profit, loss of CMS funds to KC would result in one or more of the following:
1. Large increases in tuition. This would likely depress enrollment in badly needed health fields, turn away students from less affluent populations, increase student loan default rates, and possibly result, in the end, in closure of the college.
2. Loss of CMS funds will likely result in an in interruption in the training of nurses, radiological technicians, sonographers, physician’s assistants, and respiratory therapists. The vast majority of these students are from Ohio and intend to work in Ohio.
3. A detrimental economic impact for the Dayton area resulting from significant damage to KC. KC employs approximately 150 faculty and staff in support of nearly 1000 students.

SOLUTION: Aaron Schock (R-IL) recently reintroduced legislation (cosponsored by Rep. Mike Turner) that would allow Kettering College to continue receiving Medicare pass-through dollars under the Higher Learning Commission’s new accreditation regime. H.R. 977, better known as the MEND Act, makes narrow, budget-neutral changes to the law so affected schools can continue to receive this kind of funding. The Higher Learning Commission is supportive of the legislation along with the American Hospital Association and Ohio Hospital Association.