The Advantages of an MBA in Health Care Management
Health care stands at a crossroads in the 21st century. Innovative technology is beginning to spread throughout the industry, leading to more efficient and effective operations. But there’s a long way to go before this transition is completed. That’s why there is one area with high demand: leadership. Thanks to MBA programs that offer students the chance to specialize, graduate students have the opportunity to earn an MBA with a specialization in healthcare or a doctorate of business administration with a specialization in innovative health care. Doing so can help prepare them for the challenges facing health care leaders. And there are many such challenges. A study published in the American Journal of Medicine found that health care needs a new generation of leaders who are “honest, forward-looking, inspirational, and competent.”
Why Choose an MBA in Health Care?An MBA provides health care leaders the business skills needed to manage both the streamlining of operations to save costs and increasing the quality of patient care. A quality MBA program prepares graduates for this role. For example, the MBA program at Concordia University Chicago prepares graduates to:
- Understand and analyze health care industry accreditation, regulatory, licensure, and compliance issues
- Apply and assess economic supply and demand aspects of health care
- Identify and evaluate the major financial, management and political challenges impacting health care and develop strategies to improve health care delivery
- Apply diversity, economic, ethical and fiscal perspectives to health care management decisions
- Understand the use of technology in making and evaluating data-driven decisions
Business Skills of MBA: Health Care GraduatesSome of the business skills that MBA graduates bring to the table when entering the health care industry include the following.
Finance.The health care industry is moving to a value-based payment system in which providers are paid based on patient outcomes. MBA programs offer education in areas related to this area, including risk management, budgeting, financial investment and workforce efficiency.
Management and Leadership Skills.MBA programs focus on management theory and strategy. This includes critical areas such as team building, empathy and communication.
Process Improvement.Skills in project management and process improvement methodologies can be applied by MBA graduates to health care operations. This gives MBA graduates an edge in solving complex challenges in the health care system.
High Demand for Health Care AdministratorsThe number of health care administrators in the U.S. will increase 20% by 2026, according to federal government projections. An aging U.S. population, and the growth of the overall population, are two the main drivers of this trend, according to the U.S. Bureau of Labor Statistics (BLS). California, Florida, Illinois, New York, Ohio, Pennsylvania and Texas are among the states employing the most health care administrators. The BLS reports that the annual mean salary for a health care administrator position in 2017 was $111,680.
Possible Career Next Steps: DBA in Health CareThose wishing to reach the pinnacle of knowledge and skills in business administration may seek to earn a DBA. Such programs are especially aimed at those who wish to focus on business challenges while developing application-oriented research skills. For example, at Concordia University-Chicago, the DBA program with a specialization in Innovative Health Care gives graduates skills in:
- Critically examining the literature of business, leadership, and applied research
- Undertaking independent, ethical, innovative, and rigorous business research
- Synthesizing global trends, business knowledge and leadership theory
- Designing and implement innovative business solutions
- Evaluating efficacy of business principles to effect change in global environments