Why more MBAs are choosing healthcare careers
Far from the more traditional MBA careers in hedge funds or business development, healthcare management and administration are attracting business school graduates who are looking to take advantage of lucrative opportunities in e-health ventures, pharmaceutics, and the booming biomedical industry. According to BusinessBecause, the U.S. healthcare industry is estimated to be worth at least $3 trillion. Healthcare companies are struggling to find enough employees with MBA degrees to fill their needs.
Top employers of MBAs
According to BusinessBecause, “pharmaceutical and healthcare companies continue to be major employers of MBAs.” They “snapped up 18 percent more graduates world-wide…[and] a further 18 percent growth was projected.” In the Asia Pacific region, demand for MBAs in the same sectors hit a high 43%. Closer to home, the Affordable Care Act is expected to lead to nearly 35 million more people entering the healthcare system; because of this large influx, more management and oversight will be required to aid organizations as they navigate this rapid growth.
Healthcare occupations are growing
The United States Bureau of Labor Statistics projects that employment in all healthcare occupations will grow by 19% through until 2024, and that “healthcare occupations will add more jobs than any other group of occupations.” Over 50,000 jobs are expected to be created in healthcare management alone.
Previously, gaining employment in a healthcare organization mostly meant earning clinical experience. The demand for healthcare management professionals is growing as they try to improve service delivery, contain costs, and stay abreast and in compliance with legislation changes.
Why healthcare administration
An MBA with a specialization in healthcare administration is ideal for business students who aspire to the administrative side of healthcare — for example, managing a clinic or hospital. Navigating the complex demands of policy, technology, economic management, and finance in the industry demands that its leaders be capable of coming up with equally complex solutions that improve service access and reduce costs.
The business of healthcare requires the breadth and depth of knowledge that an MBA provides, but a healthcare-focused specialization will also provide added insight into the real-world challenges of the industry. Students will also learn to understand the relationship between insurance companies, medical professionals, and patient needs and how these relationships impact service delivery and costs.
An MBA degree is the first step you can take towards becoming a leader in a changing healthcare system. Being empowered with the knowledge to develop solutions to the unique challenges facing the rapidly growing industry is an invaluable tool as you take the next step in your career.
Sources
The Atlantic, “The Rise of the M.D./M.B.A. Degree”
BusinessBecause, “Doctor, Our Healthcare Industry Needs and MBA Injection”
U.S. Bureau of Labor Statistics: Occupational Outlook Handbook, “Healthcare Occupations”