This memorandum contains a response to an article in "Change" magazine by Andrew Lupton, John Augenblick, and Joseph Heyison, September 1976. The article presented the results of a study grouping a national sample of colleges and universities into categories according to their financial health. The author's reservations about the "Change" analysis extend to the period of time covered by the study, the sample of institutions included, narrowness of the information base, application of discriminant analysis, arbitrariness of the scale of financial health, circularity in the model, measures of statistical confidence that were reported, use of the same indicators for both private and public institutions, interpretation of the key health indicators used, reliance on HEGIS data, and treatment of the panel ratings as a consensus on financial indicators. (MSE)