If you start with the premise that colleges and universities are out to take in as much revenue as possible, by any means necessary, then everything makes sense.
There are two sides to the revenue equation: recruitment and retention.
Recruitment involves attracting students who, through direct payment or scholarships/grants in aid, etc., can pay for the full costs of tuition, housing, books, meal plans, etc.
Once that student has been located and enticed to attend a college or university, the Administration then leans into the Deans and Department Chairs to convince their faculty that each student is special and needs at least 4 years to find themselves. Thus, unqualified students are either passed up the ladder to a degree or convinced to pick another, more appropriate major at the same institution.
From the perspective of the University, the students are the product, the Golden Geese upon which their future financial health resides. The faculty are just an expense; an unfortunate cost of doing business. Colleges would gladly fire all their faculty if they could re-brand themselves as late-adolescent Day care with the same level of success.
It is no wonder that the Bio-Chem Professor was tossed out. He was upsetting carefully balanced dance of college finance. He was taken perfectly good students and throwing away their dreams of becoming incompetent and dangerous physicians. How dare he!