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The Emerging Market for MBAs in Health Care
The Emerging Market for MBAs in Health Care
Published: April 03, 2008 in Knowledge@W.P. Carey
From the link:
http://knowledge.wpcarey.asu.edu/article.cfm?articleid=1583
Unlike many of her peers who are investing precious time and money studying for a master's degree in business administration, Emily Pursell doesn't want to work for or a top consulting firm or hedge fund when she graduates.
Instead, Pursell, 30, will likely remain at New York Presbyterian Hospital, a non-profit organization that encompasses five centers and 2,335 licensed beds. She's already working there as a strategic sourcing specialist in the procurement department. There, she is key to an innovative supply chain initiative that is saving her employer money while improving patient care. But when she decided to get a graduate degree, Pursell opted for the master's of business administration degree rather than a public health degree.
"When I applied for graduate school, I wrote my entrance essay about all these MBA people who are going to work for financial institutions. I want to bring myself, with more value, back to my health care institution," she said. "Hospitals are trying to recruit top-level talent and be more competitive when it comes to hiring for financial management. At this point, having an MBA in a health care institution is an exception rather than a rule, as it is in the private sector. It renders me a little more rounded." She plans to graduate from Fordham University's MBA program in May, 2009.
New roles for MBAs
She is not alone, according to Eugene Schneller, a professor in the W. P. Carey's School of Health Management and Policy. He noted that many health care organizations are looking outside of health care for their talent. "At ASU," he pointed out, "we are committed to fast-tracking our graduates into these top jobs -- and the field is responding."
"There is a whole new set of roles in health care for MBAs, especially those with some clinical understanding. And those who have some knowledge about the distinct features of the health care system, such as its financing and the unique roles that physicians play, are in an even better position to win the leadership positions in major health care organizations. The best hospital systems have engaged MBAs successfully already," he noted.
The procurement or supply-chain department is only one of the areas where MBAs are being recruited. Schneller points out that "Many graduates have entered directly into general and strategic management positions at the department or corporate levels. Others, with more targeted interests, such as marketing, finance, or information technology, seek out positions in those functional departments." Regardless of the portal, he believes that they can all be contenders for senior management positions.
The morphing MBA job market makes sense, as hospitals and other health care providers, both for-profit and non-profit, strive to cut costs while still giving good patient care. For a snapshot of the growing cost equation, consider this: health care costs have increased an average 2.5 percent more than the U.S. gross domestic product since 1970, according to a federal report published last August.
Both pharmaceutical firms and health care providers, including hospitals, are hiring an increasing number of MBAs, according to a white paper by MBA Focus, a Dublin, Ohio, consulting firm. Author Greg Ruf writes that "new firms are entering the MBA talent sweepstakes as they begin to recruit both new and experienced MBAs to their management." Until recently, MBA graduates, especially those from top-tier business schools, were snapped up by investment banks and consulting firms, but that is changing, Ruf noted.
Is he correct? A March 26 search of online employment database Monster using key word "MBA" in health care sectors pulled up more than 5,000 current job openings.
Like other industry insiders, Ruf also has noticed signs of a MBA shortage beginning to develop in some market segments. Pair that factor with the changing demands of many "millennial generation" MBA graduates who seek "both financial reward and personal lifestyle gratification from their jobs, and the competition becomes even more intense," Ruf added.
He contends that millennial-generation students, who range in age from 18 to 29, tend to be full-time MBA students, while part-time MBA students typically are already employed, and returning for more schooling to gain a strategic advantage or switch fields, according to the MBA Focus white paper, "New directions in MBA recruiting." People enrolled in executive MBA programs usually have an average seven years with their employer, and are working in a full-time management position.
Health care preference
"I definitely see a health care preference among our MBA students. Many of the MBA students who want to work in this environment are driven by altruistic reasons, rather than money -- they want to help society. They have specific things they want to accomplish along those lines," explained Guy Groff, director of the W. P. Carey School's Career Management Center.
The school, which graduates more than 1,000 MBAs annually, offers among its platforms two MBA/health options: an MBA with a specialization in health care and a concurrent degree MBA/MHSM (Master in Health Sector Management). The Master in Health Sector Management is also offered as a stand-alone degree through the W. P. Carey School of Business.
"The possibilities for management in health care are endless -- there are so many directions you can go with the training. Hospital, pharmaceuticals/biotechnology, insurance, consulting, just to name a few," said Jennifer Ottolino, a graduate student at the W. P. Carey School. Ottolino opted for the school’s concurrent degree program -- an MBA and a Master in Health Services Management -- which she said costs "less than most single-degree business programs around the country."
Marjorie Baldwin, Ph.D., who heads W. P. Carey’s School of Health Management and Policy, recently attended a conference where discussion centered on the growing need for health managers over the next 10 years. "There are 75 or so accredited programs in health management, and they produce nowhere near the number" of professionals required over the next decade, Baldwin said. "In our last alumni survey, we asked graduates about their job search: 100 percent of respondents told us they found jobs within three months. And right now, we’ve got more internships than students to fill them."
More hospital recruiters are showing up these days at the career fairs sponsored by Baruch College, part of the City University of New York, according to Tracy Handler, director of the school's graduate career management center. "They're becoming regular attendees, and they're targeting our graduates for finance and accounting positions at their facilities," she said.
"Given what is happening on Wall Street, health care positions are becoming more attractive to students. They also want the work/life balance available in that work environment that they won't get working on the street," Handler continued.
Jason Bryant isn't sure what his "end goal" is, but when he decided to go back to school for a graduate degree, he settled on the MBA program at the University of Tampa in Florida. He plans to graduate in May 2009.
Bryant, 30, is a product line specialist for the west Florida division of HCA, the Hospital Corporation of America. He works with dozens of HCA's priciest orthopedic surgeons, making sure they get what they need to (a remodeled operating room, another surgical technician, an MRI machine) in return for adhering to his exacting profit-margin guidelines.
"Right now, I'm a little unique, because of where I work, between the supply chain and hospital administration. It's a little bit of both worlds. With an MBA, I can pursue any health care interest -- I don't know where yet -- so this is a way to hedge my bets and guarantee more opportunities," Bryant said.
Bottom Line:
•Health care accounts for 16 percent of the U.S. economy. In 2000, as a nation, we spent $4,790 per person on health care. By 2006, that number had grown to $6,697 per person.
•The W. P. Carey School of Business, which graduates more than 1,000 MBAs annually, offers among its platforms two MBA/health options: an MBA with a specialization in health care, and a concurrent degree MBA/MHSM (Master in Health Sector Management). The Master in Health Sector Management is also offered as a stand-alone degree. The W. P. Carey MHSM is the only accredited program in health management in Arizona.
•A March 26 search of online employment database Monster.com using key word "MBA" in health care sectors pulled up more than 5,000 current job openings.
Published: April 03, 2008 in Knowledge@W.P. Carey
From the link:
http://knowledge.wpcarey.asu.edu/article.cfm?articleid=1583
Unlike many of her peers who are investing precious time and money studying for a master's degree in business administration, Emily Pursell doesn't want to work for or a top consulting firm or hedge fund when she graduates.
Instead, Pursell, 30, will likely remain at New York Presbyterian Hospital, a non-profit organization that encompasses five centers and 2,335 licensed beds. She's already working there as a strategic sourcing specialist in the procurement department. There, she is key to an innovative supply chain initiative that is saving her employer money while improving patient care. But when she decided to get a graduate degree, Pursell opted for the master's of business administration degree rather than a public health degree.
"When I applied for graduate school, I wrote my entrance essay about all these MBA people who are going to work for financial institutions. I want to bring myself, with more value, back to my health care institution," she said. "Hospitals are trying to recruit top-level talent and be more competitive when it comes to hiring for financial management. At this point, having an MBA in a health care institution is an exception rather than a rule, as it is in the private sector. It renders me a little more rounded." She plans to graduate from Fordham University's MBA program in May, 2009.
New roles for MBAs
She is not alone, according to Eugene Schneller, a professor in the W. P. Carey's School of Health Management and Policy. He noted that many health care organizations are looking outside of health care for their talent. "At ASU," he pointed out, "we are committed to fast-tracking our graduates into these top jobs -- and the field is responding."
"There is a whole new set of roles in health care for MBAs, especially those with some clinical understanding. And those who have some knowledge about the distinct features of the health care system, such as its financing and the unique roles that physicians play, are in an even better position to win the leadership positions in major health care organizations. The best hospital systems have engaged MBAs successfully already," he noted.
The procurement or supply-chain department is only one of the areas where MBAs are being recruited. Schneller points out that "Many graduates have entered directly into general and strategic management positions at the department or corporate levels. Others, with more targeted interests, such as marketing, finance, or information technology, seek out positions in those functional departments." Regardless of the portal, he believes that they can all be contenders for senior management positions.
The morphing MBA job market makes sense, as hospitals and other health care providers, both for-profit and non-profit, strive to cut costs while still giving good patient care. For a snapshot of the growing cost equation, consider this: health care costs have increased an average 2.5 percent more than the U.S. gross domestic product since 1970, according to a federal report published last August.
Both pharmaceutical firms and health care providers, including hospitals, are hiring an increasing number of MBAs, according to a white paper by MBA Focus, a Dublin, Ohio, consulting firm. Author Greg Ruf writes that "new firms are entering the MBA talent sweepstakes as they begin to recruit both new and experienced MBAs to their management." Until recently, MBA graduates, especially those from top-tier business schools, were snapped up by investment banks and consulting firms, but that is changing, Ruf noted.
Is he correct? A March 26 search of online employment database Monster using key word "MBA" in health care sectors pulled up more than 5,000 current job openings.
Like other industry insiders, Ruf also has noticed signs of a MBA shortage beginning to develop in some market segments. Pair that factor with the changing demands of many "millennial generation" MBA graduates who seek "both financial reward and personal lifestyle gratification from their jobs, and the competition becomes even more intense," Ruf added.
He contends that millennial-generation students, who range in age from 18 to 29, tend to be full-time MBA students, while part-time MBA students typically are already employed, and returning for more schooling to gain a strategic advantage or switch fields, according to the MBA Focus white paper, "New directions in MBA recruiting." People enrolled in executive MBA programs usually have an average seven years with their employer, and are working in a full-time management position.
Health care preference
"I definitely see a health care preference among our MBA students. Many of the MBA students who want to work in this environment are driven by altruistic reasons, rather than money -- they want to help society. They have specific things they want to accomplish along those lines," explained Guy Groff, director of the W. P. Carey School's Career Management Center.
The school, which graduates more than 1,000 MBAs annually, offers among its platforms two MBA/health options: an MBA with a specialization in health care and a concurrent degree MBA/MHSM (Master in Health Sector Management). The Master in Health Sector Management is also offered as a stand-alone degree through the W. P. Carey School of Business.
"The possibilities for management in health care are endless -- there are so many directions you can go with the training. Hospital, pharmaceuticals/biotechnology, insurance, consulting, just to name a few," said Jennifer Ottolino, a graduate student at the W. P. Carey School. Ottolino opted for the school’s concurrent degree program -- an MBA and a Master in Health Services Management -- which she said costs "less than most single-degree business programs around the country."
Marjorie Baldwin, Ph.D., who heads W. P. Carey’s School of Health Management and Policy, recently attended a conference where discussion centered on the growing need for health managers over the next 10 years. "There are 75 or so accredited programs in health management, and they produce nowhere near the number" of professionals required over the next decade, Baldwin said. "In our last alumni survey, we asked graduates about their job search: 100 percent of respondents told us they found jobs within three months. And right now, we’ve got more internships than students to fill them."
More hospital recruiters are showing up these days at the career fairs sponsored by Baruch College, part of the City University of New York, according to Tracy Handler, director of the school's graduate career management center. "They're becoming regular attendees, and they're targeting our graduates for finance and accounting positions at their facilities," she said.
"Given what is happening on Wall Street, health care positions are becoming more attractive to students. They also want the work/life balance available in that work environment that they won't get working on the street," Handler continued.
Jason Bryant isn't sure what his "end goal" is, but when he decided to go back to school for a graduate degree, he settled on the MBA program at the University of Tampa in Florida. He plans to graduate in May 2009.
Bryant, 30, is a product line specialist for the west Florida division of HCA, the Hospital Corporation of America. He works with dozens of HCA's priciest orthopedic surgeons, making sure they get what they need to (a remodeled operating room, another surgical technician, an MRI machine) in return for adhering to his exacting profit-margin guidelines.
"Right now, I'm a little unique, because of where I work, between the supply chain and hospital administration. It's a little bit of both worlds. With an MBA, I can pursue any health care interest -- I don't know where yet -- so this is a way to hedge my bets and guarantee more opportunities," Bryant said.
Bottom Line:
•Health care accounts for 16 percent of the U.S. economy. In 2000, as a nation, we spent $4,790 per person on health care. By 2006, that number had grown to $6,697 per person.
•The W. P. Carey School of Business, which graduates more than 1,000 MBAs annually, offers among its platforms two MBA/health options: an MBA with a specialization in health care, and a concurrent degree MBA/MHSM (Master in Health Sector Management). The Master in Health Sector Management is also offered as a stand-alone degree. The W. P. Carey MHSM is the only accredited program in health management in Arizona.
•A March 26 search of online employment database Monster.com using key word "MBA" in health care sectors pulled up more than 5,000 current job openings.
The Healthcare MBA: One Fast Track in a Slow Economy
The Healthcare MBA: One Fast Track in a Slow Economy
by Michael Myser
From the link:
http://www.bnet.com/2403-13070_23-266849.html
The healthcare track for MBAs has never been a hot one — until now. Believe it or not, healthcare companies can’t find enough MBAs to fill open positions in this $2.26 trillion industry, says Marjorie Baldwin, head of Arizona State University’s School of Health Management and Policy. Hospital administration and healthcare practice management may still lack the glamour of top consulting gigs, but the opportunities now go beyond just hospitals — B-school grads can find roles in everything from biomedical startups and e-health ventures to consulting and pharmaceutical R&D.
Even as the country overall lost another 598,000 jobs in January, according to the Bureau of Labor Statistics, healthcare was one of just three industries to expand its workforce. In fact, healthcare services added 372,000 jobs throughout 2008, and a good chunk of those were on the business side. At Kaiser Permanente, for example, a third of the 16,000 to 18,000 positions that open up each year are in management and operations.
Top feeder schools:
The Wharton School at the University of Pennsylvania: Wharton’s long-established Healthcare Management program excels at sending grads to lucrative industries beyond the usual hospital administration jobs — 29 percent of the program’s 2008 grads ended up in biotech and pharmaceuticals.
Duke University’s Fuqua School of Business: The Health Sector Management program enjoys close ties to North Carolina’s Research Triangle, one of the fastest-growing clusters of biotech firms in the country.
Northwestern University’s Kellogg School of Management: Kellogg’s 300-member student healthcare and biotech club hosts the annual Business of Healthcare conference, a premier networking and recruiting event in the health services industry.
Most lucrative jobs:
The most popular positions for MBAs in the healthcare industry, according to Payscale, Inc. (Salaries represent 2008’s national median pay.)
Hospital Administrator: $112,000
Healthcare Consultant: $99,500
Pharmaceuticals Project Manager: $91,900
Healthcare Services Director of Program Management: $89,000
Practice Manager: $87,300
Major MBA recruiters:
IMS Health: The 8,000-employee consulting firm works with nearly every major pharmaceutical and biotech company in the world. And according to Clint Wolfe, global director of talent acquisition, the company is as eager to take on new MBAs as it was before the recession.
Amedisys: The nursing management company has projected 2009 earnings above analysts’ expectations and forecasts continued growth this year due to a series of strategic acquisitions. Amedisys is thriving in part because during recessions patients opt for care at home as opposed to pricey hospital visits.
Amgen: Amgen Inc., the world’s largest biotechnology company, targets new grads by hosting an MBA Leadership Program as well as summer internships where students can expand their studies in biotech sales, marketing, and finance.
HCA: Armed with 180,000 employees, the Hospital Corporation of America is the largest private operator of healthcare facilities in the world. Eager to snap up recent grads, the company offers special executive-development programs focusing on everything from finance to hospital operations/administration.
The job outlook for new MBAs
Healthcare organizations typically look for clinical experience before business acumen, says Baldwin. This year, though, business acumen is a lot more front and center, with healthcare firms desperate to manage rising costs. “They are just now realizing how much they need business people running [their] organizations as opposed to clinicians,” Baldwin says. That leaves the industry facing a huge hiring opportunity — recruiters and university administrators report that a much larger pool of MBAs are pursuing careers in healthcare services, biotech firms, and pharmaceutical companies.
With more B-school grads interested in the field, the competition has pushed the bar higher for potential hires. In addition to requisite skill sets in finance, marketing, business development, and management, MBAs still need some clinical, scientific, or healthcare systems knowledge to stand out. Top schools like Wharton and Kellogg prep students with courses like biomedical marketing, e-health business models, and healthcare economics and finance, which because of the multipayer system is strikingly different from finance in other fields. This experience allows graduates to step into product development, product marketing, supply-chain analysis, and senior management roles. “It doesn’t matter whether it’s a Johnson & Johnson, a Pfizer, or other firm, they’re always looking to hire someone who can analyze the science or understand a patent portfolio,” says Dr. Gail Naughton, dean of San Diego State University’s College of Business Administration. “You can add value from day one.”
In a down market, companies are also looking for candidates who are willing and able to perform multiple jobs. “As we and other healthcare firms try to manage costs, we need a workforce that can change roles,” says Dana Pulliam Gharda, senior manager of university relations for the California-based biotech firm Life Technologies. Though the company will hire 40 to 50 percent fewer MBA grads this year, Gharda will need product management candidates who can coordinate the marketing and business development of new products on the fly as market demands shift.
Additional reporting by John Maas and Danielle Novy.
by Michael Myser
From the link:
http://www.bnet.com/2403-13070_23-266849.html
The healthcare track for MBAs has never been a hot one — until now. Believe it or not, healthcare companies can’t find enough MBAs to fill open positions in this $2.26 trillion industry, says Marjorie Baldwin, head of Arizona State University’s School of Health Management and Policy. Hospital administration and healthcare practice management may still lack the glamour of top consulting gigs, but the opportunities now go beyond just hospitals — B-school grads can find roles in everything from biomedical startups and e-health ventures to consulting and pharmaceutical R&D.
Even as the country overall lost another 598,000 jobs in January, according to the Bureau of Labor Statistics, healthcare was one of just three industries to expand its workforce. In fact, healthcare services added 372,000 jobs throughout 2008, and a good chunk of those were on the business side. At Kaiser Permanente, for example, a third of the 16,000 to 18,000 positions that open up each year are in management and operations.
Top feeder schools:
The Wharton School at the University of Pennsylvania: Wharton’s long-established Healthcare Management program excels at sending grads to lucrative industries beyond the usual hospital administration jobs — 29 percent of the program’s 2008 grads ended up in biotech and pharmaceuticals.
Duke University’s Fuqua School of Business: The Health Sector Management program enjoys close ties to North Carolina’s Research Triangle, one of the fastest-growing clusters of biotech firms in the country.
Northwestern University’s Kellogg School of Management: Kellogg’s 300-member student healthcare and biotech club hosts the annual Business of Healthcare conference, a premier networking and recruiting event in the health services industry.
Most lucrative jobs:
The most popular positions for MBAs in the healthcare industry, according to Payscale, Inc. (Salaries represent 2008’s national median pay.)
Hospital Administrator: $112,000
Healthcare Consultant: $99,500
Pharmaceuticals Project Manager: $91,900
Healthcare Services Director of Program Management: $89,000
Practice Manager: $87,300
Major MBA recruiters:
IMS Health: The 8,000-employee consulting firm works with nearly every major pharmaceutical and biotech company in the world. And according to Clint Wolfe, global director of talent acquisition, the company is as eager to take on new MBAs as it was before the recession.
Amedisys: The nursing management company has projected 2009 earnings above analysts’ expectations and forecasts continued growth this year due to a series of strategic acquisitions. Amedisys is thriving in part because during recessions patients opt for care at home as opposed to pricey hospital visits.
Amgen: Amgen Inc., the world’s largest biotechnology company, targets new grads by hosting an MBA Leadership Program as well as summer internships where students can expand their studies in biotech sales, marketing, and finance.
HCA: Armed with 180,000 employees, the Hospital Corporation of America is the largest private operator of healthcare facilities in the world. Eager to snap up recent grads, the company offers special executive-development programs focusing on everything from finance to hospital operations/administration.
The job outlook for new MBAs
Healthcare organizations typically look for clinical experience before business acumen, says Baldwin. This year, though, business acumen is a lot more front and center, with healthcare firms desperate to manage rising costs. “They are just now realizing how much they need business people running [their] organizations as opposed to clinicians,” Baldwin says. That leaves the industry facing a huge hiring opportunity — recruiters and university administrators report that a much larger pool of MBAs are pursuing careers in healthcare services, biotech firms, and pharmaceutical companies.
With more B-school grads interested in the field, the competition has pushed the bar higher for potential hires. In addition to requisite skill sets in finance, marketing, business development, and management, MBAs still need some clinical, scientific, or healthcare systems knowledge to stand out. Top schools like Wharton and Kellogg prep students with courses like biomedical marketing, e-health business models, and healthcare economics and finance, which because of the multipayer system is strikingly different from finance in other fields. This experience allows graduates to step into product development, product marketing, supply-chain analysis, and senior management roles. “It doesn’t matter whether it’s a Johnson & Johnson, a Pfizer, or other firm, they’re always looking to hire someone who can analyze the science or understand a patent portfolio,” says Dr. Gail Naughton, dean of San Diego State University’s College of Business Administration. “You can add value from day one.”
In a down market, companies are also looking for candidates who are willing and able to perform multiple jobs. “As we and other healthcare firms try to manage costs, we need a workforce that can change roles,” says Dana Pulliam Gharda, senior manager of university relations for the California-based biotech firm Life Technologies. Though the company will hire 40 to 50 percent fewer MBA grads this year, Gharda will need product management candidates who can coordinate the marketing and business development of new products on the fly as market demands shift.
Additional reporting by John Maas and Danielle Novy.
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