Addressing America’s Healthcare Human Resource Shortage: DeVry Inc. CEO Daniel Hamburger (Part 6)

SM: Give me an overview of DeVry Inc. businesses from a revenue point of view.

DH: Last year DeVry Inc. did $1.46B in revenue. $989M of that was DeVry University including Keller Graduate School of Management. Our medical and healthcare segment, which includes Ross, Chamberlain, Apollo College and Career Western College, reported $363 million. Our professional education and other educational services segments had $84 million and $25 million, respectively, So DeVry University is still our largest institution, but there is a lot more than just DeVry University to the DeVry brand.

SM: When did you go public?

DH: In 1991. We have been public the longest of any of the publicly traded education companies.

SM: What was the revenue level when you went public?

DH: $163 million in revenues.

SM: How do you measure quality outcome?

DH: Some fields, like medical and nursing, have certification exams. In areas like DeVry University, where the topics are business and technology, there are no licensing exams. One of the ways we hold ourselves accountable is by our graduates’ success in the career marketplace.

We are a career-oriented educational provider. Our standard is 90/40. Our goal is 90% of our graduates in the active job market employed in their field of study within 6 months of graduation. We have held to that standard since 1975. This past year we dipped below that and went to 89%. Part of that was due to the horrible job market.

The 40 portion of our 90/40 rule is that the average salary should be over $40,000. This past year it was over $45,000. We hold ourselves accountable for quality. Our Board Chair is Dr. Harold Shapiro. He is President Emeritus of both Princeton University and the University of Michigan. His signature is on both of my diplomas from Michigan. He heads up a wonderful board that holds us accountable for quality outcomes.

SM: How do you manage that program with 100,000 students? What is your career development program?

DH: We have one of the largest career services offices of any college in the country. We have 150 career services professionals assisting students. We have career development coursework and curriculum. WE work very closely with employers like Hewlett Packard. We are one of their largest suppliers of talent.

SM: What kind of talent do they hire from you?

DH: Engineers, marketers, accountants, and any number of career fields. It is very broad.

SM: What about your alumni? How do you see your career development office helping your alumni?

DH: They are helping our alumni. They have lifetime access to our recruiters’ offices. They do come back and we do help them. We establish deep relationships with employers like ATT, Verizon, Sprint, General Electric, IBM, and Intel. We consult with our employers and ask them what they are looking for.

We do that outside of just DeVry University. On behalf of Chamberlain College of Nursing I have met with many hospital CEOs. Every single time the hospital CEOs tell us that we are the only nursing college that comes by asking us what we are looking for in our new nurses. We focus on what is truly market driven.

This segment is part 6 in the series : Addressing America’s Healthcare Human Resource Shortage: DeVry Inc. CEO Daniel Hamburger
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