STOCK MARKET WATCH -- Wednesday, 28 March 2012

[Demeter]

42. WaPo Annual Report Reveals Widespread Accreditation and Legal Problems at Kaplan University

Kaplan University is the blood bank for The Washington Post and supplies The Washington Post Corporation with 58 percent of its revenue.

http://truth-out.org/news/item/8059-washington-post-annual-report-reveals-widespread-accreditation-and-legal-problems-at-kaplan-university

On February 29, 2012, The Washington Post Company released its 2011 10-K annual report. The report detailed accreditation problems at Kaplan College medical training programs all across the country. The annual report also revealed a dramatic decline in Kaplan's fortunes. Revenues at Kaplan Higher Education declined $500 million in 2011. Kaplan Inc.'s operating income declined from $347 million in 2010 to $89 million in 2011, and total enrollment declined from 97,000 to 75,000.

The fact that Kaplan Higher Education is failing to meet basic accreditation standards related to the training of medical personnel is a public health and safety concern. For example, at Kaplan's radiology program, it has been alleged that Kaplan failed to have a published pregnancy policy consistent with state and federal laws and make this policy known to female students.

The WaPo annual report established a disturbing pattern of accreditation problems which is not compatible with a legitimate academic institution. Kaplan and other for-profit colleges want to have access to federal education money, but time after time, their actions demonstrate that they are unwilling to behave like real academic institutions. Kaplan's answer to regulatory problems is to pay off politicians to weaken or rescind troublesome rules and regulations, thus reducing oversight, disclosure and transparency.

...........Kaplan was only one of five radiology programs nationwide to ever have their certification involuntarily withdrawn in 2011. Yet despite being unable to meet basic accreditation standards, Kaplan has been charging $42,000 for their two-year radiology certificate, while nearby Los Angeles City College charges $2,000 for a two-year radiology associate's degree.........Kaplan was exposed by a local TV station for misleading students, for months, about accreditation status. The reporter even uncovered that Kaplan had never even applied for accreditation, despite being eligible to do so. Within days of the story's broadcast, Kaplan offered students a settlement and volunteered to surrender its license to operate the dental assisting program in North Carolina....In addition to the aforementioned accreditation problems, the 2011 annual report disclosed that Kaplan has been subject to the following legal proceedings: two class-action lawsuits, five false-claims whistleblower lawsuits, an employment discrimination lawsuit by the Equal Employment Opportunity Commission (EEOC), a Senate inquiry, and subpoenas and investigative demands from the attorneys general of Illinois, Massachusetts, Delaware and Florida....