3 Reasons to Pursue a Healthcare MBA

The healthcare industry in India is one of the largest employers for Indian professionals, employing 7.5 million people nationwide [1]. This industry is only expected to continue growing, with its market value projected to reach $638 billion USD in 2025—nearly six times its value in 2016 [1]. While you might equate this rise in demand to an increased need for medical staff, this rise in staffing needs is seen across the entire healthcare sector, including hospital administration and management-related roles.

To take advantage of this exciting field, a healthcare MBA is a great way to build relevant skills and earn recognition for your healthcare management and administration expertise. Learn what a health care MBA is and explore why you might benefit from earning a healthcare MBA and what types of positions you can enter with this degree.

What is a healthcare MBA?

A healthcare Master of Business Administration (MBA) is a two-year postgraduate degree that merges business management with healthcare-specific studies, preparing you to advance in the healthcare sector or make a career switch. Graduates from this programme typically work in hospitals, private clinics, government healthcare organisations, or pharmaceutical establishments. However, the exact nature and location of your work will depend on the programme and/or specialisation you choose. 

Typically, your MBA in this field will be an MBA in Hospital & Healthcare Management. In some programmes, you will study both hospital and healthcare management, while in others, you can select one of the two as a specialisation or track. The “hospital management” track typically covers management and administration topics specific to hospitals and related areas, while the “healthcare management” track focuses more on public health, health insurance, and pharmaceuticals. In some cases, you may see related degree titles such as “MBA in Healthcare Administration,” but the coursework and topics are similar. For most programmes, regardless of specialisation, you’ll take courses in key areas such as:

• Financial management for health care organisations

• Human resource management for health care

• Health economics

• Accounting for health care

• Business statistics

• Business communications for health professionals

• Introductory epidemiology and biostatistics

• Strategic management 

• Healthcare product management

• Patient safety

• Drug compliance

• Medical facility accessibility

To enter this degree programme, you’ll typically need an undergraduate degree (with honours) and an entrance examination (MAT/CAT/SMAT/JEMAT/GATE/GMAT). Exact requirements will vary, such as required undergraduate degrees, specific entrance exams, or work experience. In some cases, you may also be asked to appear for a discussion or interview round. 

3 Reasons to pursue a healthcare MBA

While the exciting course topics and expanding career prospects may already have you interested in a healthcare MBA, graduates of this degree experience several other benefits that make it an attractive programme for many prospects. Consider the following three potential benefits when deciding if this is the right pathway for you.

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

With a healthcare MBA, you can set yourself apart in competitive environments, showing employers you can manage both the medical and business aspects of health care. India’s healthcare sector is experiencing tremendous growth, driven by government investments, increased demand for quality care, and digital health advancements [1]. By having a strong resume, you can highlight relevant knowledge and experience, helping potential employers feel confident you can take on the challenges of a fast-paced and demanding industry.

A healthcare MBA is also a very versatile degree. It not only strengthens your profile within the healthcare industry, but it also provides you with transferable business skills. This degree allows flexibility across sectors, such as pharmaceuticals, finance, information technology, human resources, and insurance, giving you multiple career pathways even outside clinical settings.

As a bonus, many degree programmes are focused on building the specific skills needed to advance to higher positions within healthcare administration, designing an industry-relevant curriculum with valuable networking opportunities. You’ll naturally interact with other students, professors, alumni, and professionals in your intended career field, allowing you to build relationships that could last a lifetime or potentially lead to new and exciting career opportunities.

2. Increase your earning potential and benefits.

Earning your healthcare MBA may also mean an attractive salary. The earning potential varies widely depending on the position you take–but the good news is earning a healthcare MBA can put you in a position to take on more senior leadership positions. For example, hospital executives are amongst the highest paid health care administrative positions you can aspire for with this degree, but medical practice managers, pharmaceutical product managers, hospital administrators, health care consultants, and health information managers also earn attractive pay. 

While a healthcare MBA opens the door to exciting positions with a good starting salary, your earning potential can increase alongside your experience level. For example, according to Payscale, an entry-level hospital administrator might make ₹415,552 per annum, while a mid-level hospital administrator could expect closer to ₹600,000 per annum, and an experienced or late-career hospital administrator might earn nearly ₹1M per annum [2]. Other positions offer even higher starting salaries–as an entry-level healthcare consultant, you can earn an average of ₹1,243,988 per annum, which increases to ₹2M per annum after 10 years [3]. This offers a high level of income security over time, allowing you to feel confident in your earning potential over time and the long-term sustainability of your career choice. 

3. Become a decision-maker in the healthcare industry.

The benefits of earning a healthcare 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 healthcare 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 healthcare 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 healthcare MBA to step up to managerial positions that require your expertise as well as your compassion and empathy. 

Who is a good candidate for a healthcare MBA?

A healthcare MBA is appropriate for anyone who wants to advance in the healthcare industry or take on leadership roles in this field. While applicant profiles vary, you might choose this degree if you:  

• Already work in health care and want to take on more administrative responsibilities

• Already work in business and want to transition into healthcare management

• Already have an undergraduate degree in a science, commerce, arts, or business field and would like to advance your career in healthcare administration

• Have a passion for the healthcare industry and want to work in a leadership role but do not want to pursue clinical work

• Have an innovative mindset with a desire to help improve the healthcare landscape, including patient facilities, safety, medical treatments, health infrastructure, and more

Possible career pathways

One of the greatest aspects of earning a healthcare MBA is that you could have job security and flexibility. With this degree, you can enter several different types of positions, such as:

• Business lead

• Floor manager

• Health insurance executive

• Project manager

• Project coordinator

• Consultant

• Hospital operations executive

• Healthcare domain specialist

• Healthcare analyst

• Hospital administrator

• Clinic manager

• Healthcare planning

• Health director

• Corporate analyst

• Talent acquisition consultant

Next steps

A healthcare MBA can open your career options, earn you an attractive salary, and equip you with the tools to make a positive impact on the healthcare industry. 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.

Give your team access to a catalogue of 8,000+ engaging courses and hands-on Guided Projects to help them develop impactful skills. Learn more about Coursera for Business.