What's Happening?
Chicago-based Adtalem Global Education has rebranded itself as Covista, reflecting its strategic shift towards health care education. This change follows the company's divestment of non-health-care-focused assets, including the sale of DeVry University in 2018. Covista now operates five health-care-focused institutions, serving over 97,000 students. The rebranding aligns with Covista's mission to address the growing demand for health care professionals in the U.S. The company reports that its institutions graduate about 10% of all new nurses annually in the country. Covista's CEO, Steve Beard, emphasized the company's commitment to expanding its programs and geographic reach to meet workforce shortages. The company plans to trade under the symbol
CVSA on the New York Stock Exchange starting February 24.
Why It's Important?
The rebranding of Covista underscores a significant trend in the education sector, where institutions are pivoting to meet the critical demand for health care professionals. The U.S. faces a projected shortage of various health care workers by 2038, with more than 702,000 job vacancies posted monthly. Covista's focus on health care education positions it as a key player in addressing these shortages. The company's ability to produce a large number of health care graduates annually could help mitigate the impact of workforce deficits on the quality of patient care. Additionally, the rebranding may influence perceptions of for-profit educational institutions, which have faced scrutiny over their practices and outcomes.
What's Next?
Covista plans to expand its program offerings and increase its geographic presence to further address health care workforce shortages. The company is also likely to engage with policymakers and stakeholders to navigate the regulatory landscape affecting for-profit educational institutions. Covista's response to recent legislative proposals, such as those introduced by Senator Dick Durbin, will be crucial in shaping its future operations and reputation. The company's performance on the New York Stock Exchange under its new symbol will also be closely watched by investors and industry analysts.
