In an official statement to The Yeshiva University Observer, YU confirmed that the governance agreement between the the Albert Einstein College of Medicine and Montefiore Medical Center has in fact fallen through.
“Yeshiva University and Montefiore Medical Center have been working to reach agreement regarding the governance and operation of the Albert Einstein College of Medicine under a Memorandum of Understanding since July of this year. When the parties were unable to agree on certain material terms, the Memorandum was withdrawn. Nevertheless, the longstanding affiliation between Yeshiva and Montefiore remains in effect. The University is keeping all options on the table to ensure a secure future of excellence for Einstein and the entire University. We believe our financial outlook allows us to meet the goal of responsibly achieving financial stability over the next three years. Yeshiva University remains a vibrant organization where its students will continue to receive a world-class education,” read the statement made by YU reps.
Earlier today, a report by Moody’s affirmed the termination. The report continued to explain that the termination of the governance agreement will only aggravate the already serious financial deficits faced by the university, “The termination of a Memorandum of Understanding with Montefiore Medical Center for the operation of the university’s medical school highlights that the university’s operating challenges will be extended, despite recently implemented efficiency initiatives.”
Despite the possible negative effects of the termination of the governance agreement, the report did highlight several positive initiatives taken by the university in recent months to strengthen its financial standings, “Healthy investment returns, the release of donor restricted gifts to support operations, and potential to monetize additional properties provide Yeshiva with sufficient headroom to operate over the next one to two years.”