OUT-OF-STATE INSTITUTION PROPOSAL To Offer a Program in Nebraska Institution: Herzing University, Milwaukee, Wisconsin (Omaha School of Massage and Healthcare of Herzing University) Program: Medical Billing and Insurance Coding, Associate of Science (AS) Institution s Existing Degree in Same or Similar Discipline: AS in Medical Billing and Insurance Coding at other Herzing locations Proposed Site(s) for Delivery: Omaha, Nebraska Proposed Start Date: January 6, 2010 Introduction Herzing University has operated for over 40 years as a private, career-oriented campus with its home office and online programs based in Milwaukee. There are currently nine physical campuses in eight states with programs ranging from certificates to master s degrees, in business, computer technology, public safety, design, nursing, and health care (including medical billing and insurance coding). Herzing University is accredited by the Higher Learning Commission of the North Central Association of Colleges and Schools. The Omaha School of Massage Therapy (OSMT) was established in 1991, offering a diploma program and continuing education courses in massage therapy. In 2008 OSMT was purchased by Herzing University. In 2009 the Commission approved Herzing University to offer an AS degree in therapeutic massage in Omaha. This proposal is for authorization for Herzing University to offer an associate of science degree program in medical billing and insurance coding in Nebraska. REVIEW CRITERIA A. Demonstrated Need and Demand for the Program in the Area to be Served Herzing states that employment opportunities in healthcare facilities are on the rise. They cite Nebraska Workforce Development which calls the career Hot, with 97 estimated annual openings in the Omaha area. Commission staff checked the Workforce Development Web site and determined that the estimate is for 97 openings in Nebraska and 43 in the Omaha area. Herzing also used www.simplyhired.com to determine the current number of job openings in the area. The search revealed 371 advertised openings in Omaha and 62 additional positions within a 30 mile radius. Some of the listings may not require an associate degree and duplicate listings often show up in Coordinating Commission for Postsecondary Education October 22, 2009 1
simplyhired.com. Even taking these two possibilities into consideration, there appears to be some degree of need for people with this training. There are two associate degree programs in the Omaha area for medical billing and insurance coding. Metropolitan Community College offers an AAS in Health Information Management Sytems: Medical Coding and Billing. Clarkson College offers an associate degree in Health Information Management. In Lincoln Southeast Community College has an AAS degree in Business Information Technology: Medical. IPEDS data is difficult to use for this field because of varying terminology and grouping of like programs for reporting purposes. Metro Community College graduated 24 students in 2007 from their Health Information Management Sytems program, which includes, among others, the medical coding and billing option. Herzing estimates 20 students will enroll in their first class. This number includes students enrolling in the medical billing and insurance coding diploma program. B. Quality of Program of Instruction to be Offered in the State The associate degree in medical billing and insurance coding requires a minimum of 65 semester credit hours and is identical to the program offered on seven other Herzing campuses. The program consists of 39 credit hours in medical billing and insurance coding, 21 hours of general education courses, three hours of electives, and two hours of personal development courses required for graduation. Within the billing and coding courses there are four credit hours of internship required. The general education courses are appropriate for an AS degree (versus an associate of applied science degree) and include information literacy; English composition; speech; computer applications; mathematics; social or behavioral science; and humanities with a critical thinking focus. Science courses are part of the billing and coding curriculum and include anatomy and physiology. The core courses would be offered on the Omaha campus. The general education courses would be available through Herzing s Online Campus. Students could also take comparable general education courses from another accredited institution and apply them to the AS degree. There are no state requirements for working in the field of medical billing and coding in Nebraska. Two national accrediting bodies provide programmatic accreditation for institutions desiring accreditation for their programs. (See Section H. for more information on accreditation.) C. Quality of Teaching Faculty Herzing intends to hire additional faculty for the Omaha program once CCPE has given approval to their application. University policy for faculty teaching in allied health fields in which Herzing offers a bachelor s degree requires instructors to hold at least a master s degree in the discipline and to have expert knowledge in the field. General education courses will be offered online. Herzing lists 16 faculty members who teach online. All have at least a master s degree, four hold doctorates, and a fifth is completing a doctorate. Herzing reports that all distance learning faculty are provided training on distance Coordinating Commission for Postsecondary Education October 22, 2009 2
learning methodologies and pedagogical support in developing course materials. They are also monitored in the quality of delivery of their online courses. D. Quality of Library and Support Services The on-site library is relatively small, but includes volumes pertinent to medical billing and coding, such as anatomy and physiology, business, and ethics. Herzing reported at the time of their approval to award the AS in massage therapy that they intended to add volumes on general education topics to the on-site collection. Those materials were to be in place by the time they began offering the general education courses in July. A Herzing representative verified at the public hearing that the volumes had been added. Students may also check out books from any Herzing University library through interlibrary loan. There is online material available through two library consortia, NebraskAccess and the Library and Information Resources Network. Computers are available in the library and wireless Internet access is available throughout the primary campus building. The second building has a computer room and library annex. There is a part-time librarian, a financial aid office, and a career services center. Students receive assistance in resume writing, honing interview skills, and identifying employment opportunities. E. Legal Form and Ownership Herzing Incorporated is a for-profit organization incorporated in the state of Wisconsin. The proposal included copies of incorporation documents. Herzing, Inc. has filed with the Nebraska Secretary of State to operate in Nebraska. F. Financial Soundness & Ability to Fulfill Commitments to Students college appears fiscally sound. Herzing University provided audited financial statements for fiscal year 2007, with supplemental information on the current financial status. The financials were reviewed by Commission finance staff. Overall, the The tuition for the general education courses would be $370 per semester credit hour and $390 for the medical billing and coding courses. Total cost of attendance for the associate degree program would be approximately $24,860, which includes tuition, books, and lab fees. This is less than the current tuition and fee charges at Clarkson College, which Commission staff estimated to be approximately $32,021 in fall 2009 for the associate degree in health information management. The cost at Metro Community College would be approximately $4,728 plus books and special fees. Herzing provided a copy of the college catalog, including the federal return policy for Title IV funds (financial aid), college withdrawal policy, and college refund procedures. Coordinating Commission for Postsecondary Education October 22, 2009 3
G. Program Location The primary campus building for Omaha School of Massage and Healthcare of Herzing University is located at 9748 Park Drive in Omaha. The 10,000 square foot building houses the massage therapy program that includes a clinic and spa, a student lounge/kitchen, a library, and six administrative offices. The medical billing and insurance coding program would be located at 5400 S. 99 th Street in Omaha in a building previously used by OSMT and recently acquired for expansion of programs. The S. 99 th Street building is a short walk from the main building. It would be developed in two phases. The first, recently opened for two diploma programs, includes a classroom, fully equipped science lab, a computer classroom, a library annex, a student break area with vending machines, and an administrative/faculty office. During the second phase, an additional classroom would be added along with a lab designed specifically for the proposed physical therapy assistant program. H. Accreditation Herzing University is accredited by the Higher Learning Commission of the North Central Association of Colleges and Schools. Fully accredited since 2004, the college was recently granted authority to offer the Master of Business Administration degree. The Commission on Accreditation for Health Informatics and Information Management Education (CAHIIM) is a national accrediting body for degree-granting programs. The American Health Information Management Association (AHIMA) accredits certificate programs. The certificate program at Herzing University s Minneapolis campus is accredited by AHIMA and the program on their Orlando campus is accredited by CAHIIM. Clarkson College s program is also accredited by CAHIIM. At the public hearing a Herzing representative confirmed that they will seek CAHIIM accreditation for the Omaha program as well. I. Transferability of Credits Since Herzing University is accredited by the Higher Learning Commission of the North Central Association of Colleges and Schools, students should be able to transfer credits in the same manner as they transfer credits earned at any other regionally accredited institution. Public Hearing A public hearing was held on September 23, 2009 at the State Office Building in Omaha. The Commission was represented by Kathleen Fimple, Jason Keese, and Miste Adamson- DaMoude. Commissioner Carol Zink served as the hearing officer. Mr. Steve Carper, President of Omaha School of Massage and Healthcare of Herzing University, spoke in support of the application. In response to specific questions from Commissioner Zink and Dr. Fimple, Mr. Carper provided the following additional information. There is no pre-requisite biology course for the anatomy and physiology courses. The approach taken by the instructor is directed to the application of the science. She evaluates the knowledge level of every class before beginning instruction and works to keep each student engaged during the course. Coordinating Commission for Postsecondary Education October 22, 2009 4
The diploma program in medical billing and insurance coding was recently initiated. One full-time faculty member has been hired to serve as the program director for medical assisting and medical billing and insurance coding. He will also teach many of the courses since several of the same courses are required for both programs. He holds a master s degree in biology and has experience teaching in the private sector. When the programs diverge, the billing and coding courses will be available online, requiring no additional on-site faculty. As the program grows, and if demand dictates, the program could be offered entirely on-site with an additional faculty member. The college has hired a new on-site librarian. The library collection now includes additional texts in general education subjects, including psychology, sociology, critical thinking, English, and biology as well as volumes in business fields. The Orlando campus is accredited by CAHIIM and Herzing intends to seek the same accreditation for Omaha. There was no testimony in opposition or in a neutral capacity. Committee Recommendation: Approve and encourage Herzing: 1.) to ensure that students taking technology-focused courses are adequately prepared to succeed, and 2.) to seek programmatic accreditation at their earliest convenience. Coordinating Commission for Postsecondary Education October 22, 2009 5