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                                                                     Exhibit 15


                              ARTHUR ANDERSEN LLP





                    REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS


To Education Management Corporation and Subsidiaries:


We have reviewed the accompanying condensed consolidated balance sheets of 
Education Management Corporation (a Pennsylvania corporation) and Subsidiaries 
as of December 31, 1998 and 1997, and the related condensed consolidated 
statements of income for the three- and six- month periods ended December 31, 
1998 and 1997, and the condensed consolidated statements of cash flows for the 
six-month periods ended December 31, 1998 and 1997. These financial statements 
are the responsibility of the Company's management.

We conducted our review in accordance with standards established by the American
Institute of Certified Public Accountants. A review of interim financial
information consists principally of applying analytical procedures to financial
data and making inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted in accordance
with generally accepted auditing standards, the objective of which is the
expression of an opinion regarding the financial statements taken as a whole.
Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that should 
be made to the financial statements referred to above for them to be in 
conformity with generally accepted accounting principles.

We have previously audited, in accordance with generally accepted auditing 
standards, the consolidated balance sheet of Education Management Corporation 
and Subsidiaries as of June 30, 1998 (not presented herein), and, in our report 
dated August 4, 1998, we expressed an unqualified opinion on that statement. In 
our opinion, the information set forth in the accompanying condensed 
consolidated balance sheet as of June 30, 1998, is fairly stated, in all 
material respects, in relation to the consolidated balance sheet from which it 
has been derived.




                                                        ARTHUR ANDERSEN LLP



Pittsburgh, Pennsylvania
  January 25, 1999