Page 280 - Crisis in Higher Education

Reforming Administration and Management • 251

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but interest is growing. In many cases, universities own assets involved
in these activities, so arrangement must be made to sell or lease them
to private companies. Today, private companies are investing money and
building assets on campus. 35

11.6.3.3 Outsourcing Services with No Independent Funding Stream
The last four items in Table 11.3 are activities to consider outsourcing, but
they do not have an independent revenue stream, so it is necessary to pay
for these services. Providing students with basic and emergency health-
care is an essential service. All students should have health insurance, and
many of them do through their parents’ insurance. This provides some
compensation, but there still may be costs that universities must cover. For
universities with hospitals or large medical clinics close by, these services
may be outsourced. For janitorial services, campus security, and the on-
campus bus network, there is no revenue, but outsourcing is likely to lead
to lower cost and better service. 31

11.7 DRIVING FORCES FOR CHANGE

Governments hold the leverage, especially for public universities, which
receive significant funding from both state and federal sources. Students,
parents, other family members, and friends must demand that governments
take action to lower the cost of higher education by making important and
fundamental changes. This is not about increasing government support, but
about spending less. Governments must work through the board of trustees
and president to drive these administrative and management changes.

11.8 IMPACT OF REFORMING ADMINISTRATION
AND MANAGEMENT ON HIGHER
EDUCATION OUTCOMES

Reforming administration and management has major impacts on
strategic planning, goal setting, and identifying who are the custom-
ers of universities, which broadly impacts the solution. The following