Healthcare costs are on the rise. With hospitals and other healthcare organizations under pressure to control costs, demand is growing for healthcare managers with the knowledge and skills to improve all aspects of the business side of healthcare. Educational institutions are responding to the need by developing healthcare-focused MBA programs.
Southern Oregon University (SOU), for example, offers a Master of Business Administration (MBA) with a Concentration in Healthcare Administration. Along with building leadership and management proficiencies, this program prepares students to apply advanced business skills to healthcare systems.
How Do Job Options and Salaries Stack Up?
MBAs can expect to find plenty of job options in most industries. In fact, according to the Graduate Management Admission Council, the demand for MBAs is high across the board. One field in particular is medical and health services management. The U.S. Bureau of Labor Statistics (BLS) projects that employment in management occupations will grow 6% from 2018 to 2028. At 18%, medical and health service managers have a much stronger job outlook.
Salaries in any occupation vary from one employer to another. Factors such as experience and geographic region also impact pay. But a 2018 median wage of nearly $100,000 per year for medical and health service managers is a good sign. Even better, the highest 10% salaries are more than $182,600.
The following five job options demonstrate the value of an MBA in healthcare administration:
- Medical Practice Manager
This position can be a great way to gain wide-ranging management experience that can lead to higher-level positions (with higher salaries). Practice managers oversee the day-to-day performance of a medical practice. They keep the business side of things running smoothly so providers can focus on patient care. Chron puts the salary for practice managers at $93,770 a year.
- Health Informatics Manager
There is no shortage of data in healthcare. Health informatics managers are key players in leveraging all that information to achieve the triple aim: better patient care, better population health and reduced costs. Health informatics managers are well-compensated. The BLS puts the median annual wage for computer and information systems managers at $142,530, with the top 10% earning more than $208,000.
- Nursing Home Administrator
This career may call to those who want to improve outcomes for vulnerable populations. Nursing and residential care facilities are among the top employers of medical and health services managers. In addition to managing resident care, nursing home administrators oversee staff, admissions, finances, facilities and compliance. Salary.com puts the median salary range for nursing home administrators with an MBA at $110,214 to $117,261 per year.
- Director of Operations
Creative problem-solvers may thrive in this position. With a focus on healthcare reform, a key role in operations management is to increase operational efficiencies, improve care and reduce costs. Indeed reports a median director of operations salary of $92,848 per year as of October 2019.
- Chief Financial Officer
With coursework that covers managerial accounting, strategic operations, process improvement and financial management, an MBA in healthcare paves the way to executive positions. According to a 2019 Hospital Executive Compensation Report, financial executives earned an average yearly salary of $333,000 in hospitals. With bonuses, the total cash compensation is close to $400,000.
Anyone considering an MBA may wonder which concentration is the best fit. Strong demand for healthcare managers along with high salaries are just a couple of reasons to consider a healthcare concentration. For those who want to make a difference, an MBA in healthcare also offers an opportunity to lead high-impact change.