An assessment of the financial stability between the university and the healthcare industry found that the healthcare industry offers a foundation for stability and growth in the next decade. This decision is reached after analyzing external funding sources to determine any available funding to support the operating structure of the healthcare industry (Cleverley, Cleverley, and Song 45-56).
Legislative restrictions in hospitals are more relaxed as compared to those in universities during the creational and operational stages and remain in legal conformity with laws and directives in the industry. Additionally, analysis affirms that being updated on curricula, technology, practice trends, and general management of the university industry is difficult compared to the healthcare industry (Woolgar 1261-1274). Additionally, the healthcare industry has a social responsibility to assist people live in good health. The industry considers their vision and industrial goals to align together to influence health care and communities in constructive ways. The healthcare industry is also making plans to ensure that the staff in the industry work smoothly and are well paid in order to achieve visions of the industry.
Regardless of this success in the healthcare industry, the higher education “bubble” has hit a fever pitch in the last five years (Woolgar 1261-1274). It has been predicted that annual tuition fees will rise several times in the next decade as the rate of inflation has become routine in this industry. The higher education industry has financial statements that are considerably weaker than they were ten years ago, with a low equity ratio on the balance sheet. The universities are having additional liabilities, huge debt service and escalating outlay devoid of the cash stores to counter them. This trend will predict low earnings for their staff in the future and tougher working standards for their staff.
Cleverley, William, Paula Song, and James Cleverley. Essentials of health care finance. Sudbury, MA: Jones & Bartlett Learning, 2010. Print.
Woolgar, Lee. “New institutional policies for university–industry links in Japan.” Research Policy 36.8 (2007): 1261-1274.