The decision to sign a new joint agreement and explore a potential strategic combination between St. Ambrose and Mount Mercy brings exciting possibilities. It also brings many questions. We provide answers to the most frequently asked questions here.
Why are St. Ambrose University and Mount Mercy University signing an agreement and exploring a strategic combination?
St. Ambrose University and Mount Mercy share roots as two long-standing independent, private and not-for-profit Catholic universities based in Iowa. St. Ambrose was founded in 1882 and Mount Mercy in 1928. The two universities share consistent values, beliefs, and priorities about education. They each have substantial reputations for workforce related student success. Given these shared values and successful outcomes with past collaborations, the presidents of each university, Dr. Amy Novak of St. Ambrose and Dr. Todd Olson of Mount Mercy, are taking a proactive approach to the current higher education landscape to increase access and affordability to quality education for both traditional students and adult learners.
What are the terms of this new joint agreement?
The new joint agreement allows students to take a range of courses from either university (in-person or online), starting in fall 2024. This arrangement, which was approved by each university’s board of trustees, will lead to more pathways for undergraduate and graduate students at both institutions beginning in fall 2024. The two universities are also in the process of finalizing a second agreement that will facilitate the seamless transition of qualified students from undergraduate into graduate degree programs.
What led to the signing of this agreement?
Beginning in January of 2023, the president of St. Ambrose University, Dr. Amy Novak, and the president of Mount Mercy University, Dr. Todd Olson, began to discuss whether, and how, the two universities might come together in mutually beneficial and enriching ways. Those initial meetings led to further conversation, which led to a more than year-long exploration of the viability of a strategic relationship.
Can you provide more details on the timeline leading up to the agreement being signed?
In January of 2023, the university presidents met to discuss the state of Catholic higher education. These discussions led to both universities pursuing a Nursing Articulation Agreement in June of 2023 that gives St. Ambrose students preferential admittance when applying to Mount Mercy’s MSN program.
In that same month, a taskforce comprised of members of both university’s boards and key university administrators convened to outline a joint vision statement for a possible deepened collaboration.
In December 2023, the board of trustees of both universities signed a letter of intent (LOI) to begin a robust due diligence process and explore the potential of a deeper and more comprehensive venture, including the potential of reducing costs and increasing operational efficiencies by sharing administrative operations.
In January 2024, the presidents collaborated again (along with the presidents from Loras and Clarke) to pen a joint OpEd on how Catholic higher education is an asset for Iowans.
In April 2024, upon review of the majority of the results of the due diligence process, the respective boards voted to continue pursuing a possible combination. Also in April 2024, the provosts of both universities signed a new agreement (sometimes called a consortial agreement or co-registration agreement) that allows students to take a range of courses at either university, beginning in fall 2024.
Are you forging this agreement to save costs?
The goal of the agreement is to expand access and affordability to quality education for traditional students and adult learners alike. Cost savings and more efficient operations may result in the future if the two universities move forward with a strategic combination.
What information can you share about the financial strength and stability of each institution?
St. Ambrose University shares these key metrics regarding its strength and stability:
- Endowment of $220 million as of June 30, 2023. This is up 40% over the past five years.
- 36th largest endowment out of 187 Catholic Colleges (CollegeRaptor.com).
- The endowment is also largely unrestricted, with only 21% restricted by donor intent.
- Strong unrestricted resources, with unrestricted cash and investments exceeding 275% of annual expenses and 410% of long-term debt.
- Low levels of long-term debt, with debt under 20% of total assets.
- Department of Education Composite Score that is consistently at 3.0, the highest level.
- Consistent full-accrual operating surpluses.
- Bond rating of A- with a stable outlook.
Mount Mercy University shares these key metrics regarding its strength and stability:
- Endowment of $39.3 million as of June 30, 2023. This is up 41% over the past five years.
- Total debt of $12.9 million as of June 30, 2023. This is less than 15% of total assets and less than 50% of the annual operating budget.
- Bond rating of B (Forbes).
What is the enrollment of each institution?
St. Ambrose University has a total of 2,706 (both full and part-time, graduate, and undergraduate) students enrolled in the 2023-24 academic year.
Mount Mercy University has a total of 1,449 (both full and part-time, graduate, and undergraduate) students enrolled in the 2023-24 academic year.
How does the collaboration between St. Ambrose and Mount Mercy represent a new model for Catholic higher education?
This collaboration represents a proactive approach to capitalize on the current academic and financial strength of both St. Ambrose and Mount Mercy and lays the foundation for a new, responsive, and sustainable model of Catholic higher education.
Father Dennis Holtschneider and Dr. Donna M. Carroll, co-presidents for the Association of Catholic Colleges and Universities, state that this is precisely the type of proactive activity they have been encouraging colleges to explore. “We know these are challenging times for our colleges and universities,” says Carrol. “We fully support the work St. Ambrose and Mount Mercy are doing to lead the way in creating a responsive and sustainable future for Catholic higher education.”
Additional statements of support for this innovative model from the Sisters of Mercy and Archbishop Zinkula can be found here.
Can you describe the potential strategic combination being pursued?
The intention of a combination would be to strategically align and bring together the two universities to provide an innovative new model for Catholic higher education.
A strategic combination will allow both institutions to share resources, administrative functions, and economies of scale to achieve cost savings and operational efficiencies, providing long-term sustainability for the universities and reduced costs for students and families.
Even if a combination happens, both universities will maintain separate residential campuses, separate co-curricular programs, and both the St. Ambrose and Mount Mercy names will be maintained.
What if the strategic combination does not move forward?
The two universities will continue to operate independently, with their joint academic agreements still in place.
How will you keep the public informed as you move forward?
We will update this FAQ as we move forward in the process. Consider bookmarking this page and checking back regularly for updates. We also will reach out proactively to our communities with updates.