Rice and Baylor Begin Formal Discussion of a Merger

On Thursday, March 26 Rice University President David Leebron and Baylor College of Medicine Interim President William T. Butler, MD released a statement to the faculty, staff and students of both institutions that confirms that formal discussions of a merger have begun:

We are pleased to announce that the governing boards of Rice and BCM this week approved the signing of a memorandum of understanding (MOU) that lays out a broad framework for formal negotiations about a possible merger of our two institutions.

While no decision on a merger has yet been made and many issues remain to be resolved, our boards have concluded that a closer affiliation has abundant potential benefits for both institutions, as well as for our home city of Houston.

The statement continues by explaining that the MOU provides a framework through which Rice and Baylor will move forward with discussions and address issues that have been raised during more informal talks.

A merger of these two eminent institutions would provide Rice with increased visibility and prestige, and no doubt bring expanded research opportunities and federal funding to both. The main source of resistance to the merger stems from Baylor's purported financial troubles. Baylor is one of only 10 medical schools in the United States that is not affiliated with a university system, and therefore is not backed by a large endowment like other medical schools. Opponents to the merger argue that Rice's endowment will be drained by assuming the complexities of running a medical school.

The big winner of this merger will be the city of Houston. There has been a need for the development of more Tier 1 research institutions in Texas. Coupled with Houston's relatively low cost of living, a Rice/Baylor academic powerhouse would attract some of the best and brightest in the country and provide fertile ground for the development of biotech and pharmaceutical industries.

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