3 Reasons to Pursue a Health Care MBA

A Master of Business Administration (MBA) in health care is an advanced degree combining business management and health care studies to help you advance your career in the health care industry or switch to a career in the field. Earning an MBA has many benefits. Discover more about what it takes to graduate with your health care MBA and why you might want to choose this area to specialize in.

What is a health care MBA?

There are two health care MBAs that you can earn; one specializes in health care management, while the other specializes in health care administration. In general, the two degrees are quite similar and could even be interchangeable, depending on your school and elective courses. 

The key difference is that health care administrators typically focus on the day-to-day operations of a clinic, hospital, or hospital department, while a health care manager might handle broader actions, like financing a health care facility or eventual expansion.  

For both degrees, you'll take courses in areas like:

• Business administration

• Public health

• Accounting

• Hospital systems

• Health care law

• Patient privacy rights

• Hospital management

• Finance

• Data analysis

• Marketing

• Health care strategic planning

• Health economics

An MBA with a health care concentration may be a good fit if you:  

• Already work in health care management

• Already have an undergraduate degree in health care and would like to advance your career

• Work on the clinical side of health care, such as nursing, but want a new role with more responsibilities or proficiency in the industry

• Are interested in business management and want to enter the health care industry

• Have a passion for the health care industry but do not want to pursue clinical work

If any of these fit your career goals, or you have additional reasons to seek a health care MBA, take a look at these three reasons why this could be a great choice for you:  

3 reasons to pursue a health care MBA

Earning an MBA has many benefits, especially in an in-demand field like health care. Let's review the top three.

1. Strengthen your resume and add flexibility to your career choices.

The health care industry is a rapidly growing yet competitive field. The stronger your resume, the better your chances of getting the job you want, and a health care MBA can help with that. Having a master's degree could improve your chances of landing a great job.

A health care MBA is also a very versatile degree. While it provides you with health care-specific knowledge, it also equips you with a strong business background. If you decide to change industries during your career, your resume will remain relevant and significant. Even when the job market is unstable, you may find that employers want to hire someone who can cover multiple roles. Become that candidate with this health care degree.

You'll also find opportunities outside management careers in clinical settings. You could work for insurance companies, consulting firms, digital health operations, home health agencies, and more.

As a bonus, you could build a much larger network as you earn your degree. This will happen as you interact with other students, professors, alumni, and professionals in your career. You’ll build relationships with them that could last a lifetime or potentially lead to new and exciting career opportunities.

2. Increase your earning potential and benefits.

Earning your health care MBA may also mean a salary increase. According to the US Bureau of Labor and Statistics (BLS), medical and health service managers earn a median pay of $110,680 per year or $53.21 per hour [1]. 

Some of the highest-paid workers in the field make an average of around $128,740 per year and work in public and private hospitals [2]. Those who work for the government earn a median salary of $125590, while those who work in outpatient care facilities make a median salary of $104,710 per year [2]. Medical and health service managers who work in doctors' offices and nursing or residential care facilities earn a median salary of $102,360 and $97,490 respectively [2].

The top 10 percent of workers in this field earn more than $216,750 a year [2].

What pays more, an MBA or an MHA?

MBA holders tend to earn more, on average, than those with a Master of Health Administration (MHA). This may be because an MBA can be applied to a variety of industries, whereas an MHA specializes in health care. However, the average salary for a health care MBA is also higher than that of an MHA. According to Payscale, average annual salaries for these three types of degrees are:

• MBA: $98,000 [3]

• Health care MBA: $88,000 [4]

• MHA: $80,000 [5]

3. Become a decision-maker in the health care industry.

The benefits of earning a health care MBA reach far beyond your personal career goals. If you want a job that will help you make a difference in an important industry, this could be a great choice.

As a health care manager, you'll make decisions about hospital operations, the insurance industry, and other aspects of the vocation that can impact the lives of thousands of patients. You may find yourself making improvements or implementing changes that save lives, make health care more affordable for those in need, and improve inpatient care.  

Equip yourself with the right skill sets to work in your preferred hospital or medical care setting to start making a difference. Earn your health care MBA to step up to managerial positions that require your expertise as well as your compassion and empathy. 

Health care MBA eligibility requirements 

If a health care MBA sounds like the right degree for you, find out if you're eligible for a college or university program. All schools and programs will have unique requirements, but in most cases, you’ll have to provide:

• Transcripts from your completed undergraduate studies

• Graduate Management Admission Test (GMAT) scores

• Personal essay to express why you want to earn the degree

• Resume with any relevant work or volunteer experience 

• Letters of recommendation

Some programs may also require an interview to get a better idea of why you’d be a good candidate for the program.

Possible career paths with a health care MBA

Two of the greatest aspects of earning a health care MBA is job security and flexibility. You could choose from several possible career pathways in health care, such as:

• Hospital administrator 

• Pharmaceutical project manager

• Medical practice manager

• Medical research and development business manager

• Health care consultant 

• Health care information manager 

• Health services manager

• Pharmaceutical brand manager

• Health care administrator

• Clinician leader

• Medical entrepreneur

• Corporate development associate 

• Policy analyst or researcher  

Learn more: Is Health Care a Good Career Path?

Getting started with Coursera

A Healthcare MBA is a valuable degree for those seeking leadership roles in health care. Explore whether earning your MBA with a concentration in health care could be a good fit for your interests and career goals with The Business of Health Care Specialization from the University of Pennsylvania. When you’re ready to take the next step toward your MBA, learn more about what it’s like to earn a business degree from a top university on Coursera.