Financial Sustainability Solutions

Financial Sustainability & RCM Budget Modeling

Kennedy & Company helps institutions of all types to better forecast their future financial scenarios and identify options for improving revenues and reducing expenses. Whether you are a private institution with rising tuition discounts and decreased net tuition revenues, or a public institution facing new pressures from changing state funding formulas or increased competition, Kennedy & Company has the right experience to guide your institution through its unique financial situation. Beyond this, we help institutions facing serious financial challenges find solutions to long-term sustainability that do not emphasize lay-offs and the rapid dissolution of existing programs. We believe that higher education institutions too often force major changes to their organization without considering the negative effects on enrollment and reputation; in addition, we believe that more thoughtful solutions to evolving programs and new interdisciplinary efforts have a better chance of success if they have faculty support.

OUR APPROACH:

For each of our clients, we develop a customized long-range financial model that accounts for changes in net tuition revenue and institutional expenses. For any of our forecasts and models, we identify how changes in demand and demographics, budget models, enrollment strategy and aid leveraging, and benefits offerings could affect institutional priorities and sustainability. In many cases, we work with institutions looking to simultaneously reduce expenses and improve enrollments and net tuition revenues.

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Your Financial Strategy Starts with the Right Diagnosis

For institutions navigating uncertainty or preparing for larger-scale planning efforts, Kennedy & Company offers financial assessments that deliver fast, actionable insight. Focused on the most immediate drivers of cost and revenue—such as enrollment strategy, staffing levels, and academic offerings—our reviews surface areas for improvement without requiring a long-term engagement. We combine benchmarking, internal data analysis, and stakeholder input to identify high-impact opportunities that can inform near-term decision-making.

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Financial Sustainability

Our work in this area includes:

Financial Sustainability Analysis
Revenue Optimization & Net Tuition Revenue Modeling
Tuition Pricing & Structural Alternatives
Cost Analysis & Management
Budgeting Methodology Assessment & Strategy
Institutional Resource Assessment & Strategy
Tuition Price Assessment & Tuition Resets
Academic Portfolio Reviews & Assessments

How RCM Fails…and How It Can Still Be Sed

Do Tuition Resets Work?

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RCM Model Implementation

College of Charleston

College of Charleston engaged Kennedy & Company to support its transition to a Responsibility Center Management Model (RCM). The institution had long considered the transition to a decentralized budget model and was compelled to begin the transition due to plateauing enrollments (particularly amongst non-resident students), declining state support, and a fixed cost base. In 2020, the College’s executive leadership team committed to beginning the transition to RCM based on their positive experience with the philosophy at previous institutions.