Is an MBA in Healthcare Management Worth It?

When healthcare professionals consider their MBA options, they’re usually confronted by this question: Is an MBA with a concentration in healthcare management equivalent to a Master of Healthcare Administration (MHA)? While the two degrees are similar in many aspects and make one eligible for higher-level roles in the healthcare industry, the MBA with a concentration in healthcare management places much more emphasis on business administration coursework—providing you with significant expertise in this area, which an MHA doesn’t—and the degree is applicable to roles in many other industries besides healthcare.

American University’s MS in Healthcare Management program director Dr. Eric Oestmann underscores what makes a healthcare management MBA stand apart from an MHA: “So in healthcare management, we want you to be not just an inch deep and a mile wide. We want you to be a mile deep and a mile wide. We want the depth and breadth of knowledge and skill-based outcomes from this degree, versus healthcare administration, which really is a much more high-level degree in terms of information only.”

Our guide will cover all you need to know about a Master of Business Administration with a specialization in healthcare management and whether it’s right for your career goals. We’ll touch on:

• What is a healthcare management MBA?
• Careers for healthcare management MBAs
• Is a healthcare management MBA worth it?

What is a healthcare management MBA?

The combination of an MBA degree with a healthcare track may seem like an odd pairing at first. After all, an MBA degree is typically pursued by students seeking to work in the financial, marketing, technology, and consulting industries. How does healthcare fit in?

The simple answer is that in the United States healthcare is a business. In many ways, hospitals, nursing homes, and other healthcare facilities operate as traditional businesses—even when they receive government support.

So, let’s start with the basics. A healthcare management MBA program provides a master’s level education in the financial, operational, managerial, and policy-related aspects of running a successful healthcare system.

Purpose

Healthcare management MBA programs seek a range of prospective students both in and outside the field. With training in everything from data informatics to nonprofit management, MBA graduates can set their sights on health services manager roles all the way up to the chief executive officer of a healthcare organization.

Curriculum

Depending on the structure of the program, you’ll need to earn between 30 and 48 credits for graduation. Online MBAs offer optimal flexibility for professionals already active in the field, while in-person programs will move at a more accelerated clip. In just two to three years, students can earn a healthcare management MBA on either a full-time or flexible part-time schedule.

In both full- and part-time programs, the curriculum will be a mix of core MBA and healthcare courses, as well as specific electives tailored to your specialization.

To begin, let’s take a look at each category. The classes below are pulled from top schools like the online masters program at Case Western Reserve University and Wharton.

Core MBA courses

These classes cover the foundational business management skills you’ll need to lead a team within a healthcare setting:

• Accounting
• Economics
• Finance
• Human resource management
• Information systems
• Leadership
• Managerial marketing

Healthcare coursework

Typical healthcare track courses include:

• AI in healthcare
• Economic issues in healthcare
• Entrepreneurship in healthcare
• Healthcare data analytics
• Healthcare reform
• Regulatory issues in healthcare

Electives

Both schools offer electives like these that allow for some specialization with your degree:

• Comparative health systems
• E-Health: business models and impact
• Managed care and market structure
• Management healthcare for the elderly
• Private Sector Role in Global Health

Admissions requirements

While many prospective students come from healthcare administrator backgrounds, others have business skills from other fields, but hope to transition to the healthcare field.

For example, Case Western Reserve University specifically notes that they look for mid-career professionals from within or outside the field, preferably with a minimum of three to five years of experience.

Their admissions requirements include:

• Completed online application
• Professional resume
• Two career-focused essays
• Two contacts for referrals
• Unofficial transcripts

Similar programs, such as the one at DeSales University, also require:

• Letters of recommendation
• Minimum undergraduate GPA of 3.0
• Prerequisite courses or an exam for a course waiver

Student demographics

A vital aspect of a postgraduate education is the opportunity to build a professional network with your peers in the field that may help you find your ideal job down the road. What kind of demographics can you expect from your cohort of fellow students? Here is a mix of class profiles from the past several years from top programs:

• Average age: 30-38
• Common undergraduate majors:
• Business
• Economics
• Engineering
• Liberal arts
• Social sciences
• Sciences
  Employment type after graduation:
• Hospital
• Insurance
• Medical research
• Physicians office
• Pharmaceuticals
• Years of work experience post-college: between two and eight years

Online vs. in-person

Like all online master’s or bachelor’s degrees, balance is the key to an excellent virtual program. The online MBA with a healthcare management track at Case Western Reserve University combines experiential learning with the flexibility of online coursework that you can work through at your own pace from wherever you’re living.

For example, the school offers:

• 24/7 tech support
• 60 to 90 minutes of synchronous learning each week
• Access to faculty active in the field
• Assignment of a Student Success Coach to assist with online learning
• Completion of the program in as little as eight consecutive terms
• Multidisciplinary approach to both business and healthcare coursework

Careers for healthcare MBAs

According to the US Bureau of Labor Statistics (BLS), the median pay for medical and health services managers is in the six-figures. High-ranking positions earn an average salary of $104,280 (which can be much higher, depending on industry and location). In addition, the BLS predicts a much faster-than-average growth for these careers at an impressive 32%.

What positions can you expect to qualify for after graduation? And which doors unlock because of your MBA degree?

Let’s start with the many settings that need strong financial and operation management skills:

• Hospitals
• Insurance companies
• Medical consulting companies
• Mental health facilities
• Nursing homes
• Outpatient services
• Private practices and groups
• Rehabilitation centers

Positions vary depending on your specialty—from project management to data analytics. Your business skills guide some of the most crucial decisions for profitability and, most importantly, the level of quality care for patients.

Common job titles include:

• Chief financial officer
• Chief operating officer
• Clinical director
• Department director
• Healthcare operations manager
• Healthcare risk manager
• Hospital CEO
• Human resources manager
• Information management director
• Quality and improvement manager

Is a healthcare management MBA worth it?

C-level positions in healthcare—such as CEO or CFO—typically require a master’s degree for consideration. The healthcare management MBA and MHA are two of the most popular routes to these positions, but the MBA offers the managerial skills needed to be a strong leader in the healthcare sector.

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