Education materials publisher McGraw-Hill Education, US, and Western Governors University (WGU) have announced an agreement to establish a ‘pay-for-performance’ model in which McGraw-Hill will receive variable compensation for those WGU students who use MHE technology and services for a particular course and pass.
Through the partnership, McGraw-Hill Education will provide e-books and access to industry-leading adaptive learning tools including McGraw-Hill LearnSmart to Western Governors University's (WGU) online courses. Under this new pricing structure, the university will pay a significantly discounted flat fee for McGraw-Hill's course materials.
In addition, WGU will pay McGraw-Hill a premium for each student who uses the materials and passes the course (a passing grade at WGU is equivalent to a letter grade of "B" or better). Through this new pay-for-performance model, universities and learning companies share in the accountability for student success and students gain access to premium educational materials while keeping costs low.
The new business model supports WGU's philosophy of providing a mentor-guided, competency-based education that allows students to advance when they demonstrate mastery of all course competencies rather than accumulating credit hours by spending time in class. For each degree program, required knowledge and skills, called competencies, are defined in collaboration with education and industry experts, and assessments are developed to measure these competencies. WGU has drawn national attention for this innovative, competency-based approach to learning, which offers affordable, high quality education.
