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                            ARTHUR ANDERSEN LLP


                                                                     Exhibit 15

                 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 March 31, 1999 and 1998, and the related condensed
consolidated statements of income for the three-and nine-month periods
ended March 31, 1999 and 1998, and the condensed consolidated statements of
cash flows for the nine-month periods ended March 31, 1999 and 1998. 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,
 April 20, 1999