Higher education, the health care sector and our future economy

CALIFORNIA’S CREDENTIAL

CRUNCH

These three graphs show the change in the percent of US GDP spent on 1) K12 Education 2) Health Care and 3) Postsecondary ed. Which is which?

BRAIN TEASER

K-12 HAS REMAINED A RELATIVELY CONSISTENT SHARE OF GDP

SOURCE: U.S. Department of Education, National Center for Education Statistics, Digest of Education Statistics, 2010

SHARE OF HIGHER EDUCATION HAS TRIPLED BUT REMAINS SMALL

SOURCE: U.S. Department of Education, National Center for Education Statistics, Digest of Education Statistics, 2010

HEALTH CARE HAS SKYROCKETED…WE SPEND 3X MORE AND IT’S NEARLY A FIFTH OF SPENDING

SOURCE: Centers for Medicare & Medicaid Services, Office of the Actuary, National Health Statistics Group; U.S. Department of Commerce, Bureau of Economic Analysis; and U.S. Bureau of the Census.

Baumol’s Cost Disease Quality and TransparencyCommon characteristics

Human Capital Intensive Powerful labor groups Highly regulated Services provided perceived as a “right” and common good Dependent on accreditation for federal subsidy Disincentives to keep costs low, despite public outcry Influx of for-profit direct-service providers

HEALTH CARE AND HIGHER ED

WHERE “GOETH” THE GOLDEN STATE?

THE CALIFORNIA STORY OF ECONOMIC DEVELOPMENT

California needs to produce 5.5M degrees and

credentials by 2025, but is on track to produce only

3.2M

GAP: 2.3 Million Degrees

CALIFORNIA’S CHALLENGE

PRODUCERS OF DEGREES IN CALIFORNIA

In-de-pendent18%

For-Profit7%

UC28%

CSU 47%

166,000 Bachelor's Degrees awarded in 2010-11

US Department of Education, 2011

Com-munity

Col-leges39%

For-Profit59%

121,303 Vocational AAs and sub-baccalaureate certificates of one year or more, 2010-11

US Department of Education, 2011

Independent 2%

DEMAND-SIDE: WHAT HEALTH CARE DEGREES & CREDENTIALS DOES CA NEED?

Physical Therapist

CVIR Technologist

Medical Lab Technician

MRI Technologist

PET Technologist

Clinical Lab Scientist

Physical Therapy Asst

Ultrasound Technologist

CT Technologist

Respiratory Therapist

All Occupations (Avg)

Nuclear Med Tech

Radiological Technologist

Pharmacist

Pharmacy Technician

0.0% 2.0% 4.0% 6.0% 8.0% 10.0%

7.8%

6.8%

6.3%

6.2%

5.6%

5.3%

5.3%

5.0%

4.9%

4.5%

4.4%

4.3%

3.8%

3.1%

2.9%

Vacancy Rates by Occupation (2009)

California Hospital Association – Allied Health Workforce Survey, Feb. 2011

SUPPLY-SIDE: BACCALAUREATE DEGREES

4.8%

Public Colleges - Health

Public CollegesAll

Public CollegesHealth

10.6%

For-Profit Colleges - Health

For-Profit CollegesAll

For-Profit CollegesHealth

6.4%

Independent Colleges - Health

Independent CollegesAll

Independent CollegesHealth

SUPPLY-SIDE: 118,000 VOCATIONAL AA’S AND CERTIFICATES (1-YEAR PLUS)

40%

60%

Public

For-ProfitPublic Health

For-Profit Health

40%

60%

OF THE HEALTH CREDENTIALS (40% OF TOTAL), THREE-QUARTERS ARE FROM FOR-PROFIT

SCHOOLS

26%

74%Public

For-Profit

Public Colleges, HealthFor-Profit Health

White Hispanic Black Asian0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

Degrees and Completions in Health Fields

Assoc & Sub-Bacc 1+ YearsBachelor's DegreesMaster's DegreesProfessional Doctorates (e.g. MD)Research Doctorates

SUPPLY-SIDE: WHO IS COMPLETING HEALTH-RELATED DEGREES?

White Hispanic Black Asian0

500

1,000

1,500

2,000

2,500

3,000

Where are students getting their bachelor's degrees?

PublicFor-Profit

DISTRIBUTION OF BACCALAUREATE DEGREES BY RACE

White Hispanic Black Asian0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Where do students get their Assoc. Degrees/Sub-Bacc of 1+ years?

Public & Non-ProfitFor-Profit

SUPPLY-SIDE: WHAT INSTITUTIONS ARE PRODUCING SUB-BACCALAUREATE HEALTH-

RELATED DEGREES?

For profi ts are vastly more invested in producing the health care degrees

Certain populations are more likely to obtain degrees from for-profi t institutions

Low BA attainment for African American and Latino students

Underrepresented groups are underrepresented throughout the health education pipeline: 40% of all masters degrees and nearly 40% of all professional doctorates are earned by white students.

The pipeline is leaky all the way through.

THE TAKEAWAYS

Increase access to community colleges, we need to ensure growth in health professions for certain populations, especially for African American and Latino students

Aff ordable tuition and better fi nancial aid Increased for-profi t

regulation

WHAT ELSE DOES IT TAKE TO IMPROVE CALIFORNIA’S HIGHER EDUCATION SYSTEM?

Better data to link wages to occupations

Better guidance for

higher education

system on how to

remain responsive to shifts in the economy

www.californiacompetes.org

@CalCompetes