Why a Master's Degree in Healthcare Management Is Worth It

As Faculty Director of Michigan State University’s Master of Science in Healthcare Management program, one of my responsibilities is ensuring our curriculum reflects the skills and knowledge healthcare employers are looking for. By continually evaluating workforce trends, employer needs, and changes across the healthcare industry, we prepare students for careers that are in demand today and positioned for long-term success.

One question I often hear from prospective students is whether a master’s degree in healthcare management is worth the investment. The short answer is yes, but the reasons go beyond salary alone. Demand for healthcare jobs is one of the fastest-growing industries in the country, management roles continue to expand at an impressive pace, and the industry’s size and complexity create opportunities across hospitals, health systems, insurance organizations, consulting firms, technology companies, and many other sectors.

In this article, I’ll explain why healthcare management continues to be one of the strongest career paths available, examine the employment outlook for healthcare leaders, and discuss how a master’s degree can help position professionals for long-term career growth and leadership opportunities.

The Demand for Healthcare Management Jobs Continues to Grow

In general, the healthcare industry is a great industry to work in. Indeed, the Bureau of Labor Statistics lists “Healthcare and Social Assistance; Private” as the fastest growing industry in the U.S. with a projected percent change in industry employment of 8.7% between 2024 and 2034.  Of the top 20 fastest growing occupations in the U.S., 60% (12/20) are specific to the healthcare industry and another 30% of the fastest growing occupations are applicable to the healthcare industry.  This means that 90% (18/20) of the fastest growing occupations in the U.S. over the next 8 years or so are found in the healthcare industry (the top two fastest growing industries are related to the renewable energy industry).

Although 45% of the fastest growing healthcare occupations are clinical (patient-facing) in nature (this rises to 55% when taking into account clinical training and education occupations), “medical and health services management” is projected to be the sixth fastest growing occupation through 2034. The Medical and Health Services Management occupation category is expected to experience a 23% growth rate and is projected to grow by almost 143,000 jobs by 2034. This is the largest projected growth in total number of jobs of any occupation in the U.S.  Coupled with a mean salary of $117,960/year, working in a management role in the healthcare industry is a solid career prospect.

If you look at the nature and structure of the healthcare industry, this projected growth rate is not surprising.  The healthcare industry has always been a ‘recession proof’ industry – people are always going to need medical services.

A Healthcare Management Degree Offers More Than Clinical Careers

In addition to the inherent demand of the Healthcare Industry is the diversity of key stakeholders within the industry itself.  Obviously there are clinical roles such as physicians, physician assistants, nurse practitioners, registered nurses, licensed practical nurses, certified nurse assistants, and many types of technician and assistant roles; however, the U.S. healthcare industry is also big business accounting for approximately 18-cents of every dollar spent in the U.S. economy.

Like any business, there are a lot of different business, administrative and operational roles within healthcare organizations.  Some of these roles are traditional business roles, such as operations manager, financial analyst and even attorney; but some are specific and unique to the healthcare industry, such as medical coding specialist, electronic health records manager, and chief compliance and privacy officer. Any role in a healthcare organization is specific and unique to the healthcare industry given the unique economics of the system.  For example, while revenue cycle management is a common role in business, this role is different in a healthcare organization because of the way medical services are priced, delivered, and paid for.

In addition, the healthcare ecosystem in the U.S. is extremely diverse and complex which leads to many different roles within many different stakeholders within the healthcare system.  Healthcare systems and hospitals, physician offices, skilled nursing facilities and ambulatory surgical centers deliver care to patients while health insurance companies, managed care organizations, and pharmacy benefit managers pay for services on behalf of patients.  Patients seek to obtain prescription drugs at pharmacies and medical devices and supplies from durable medical equipment (DME) companies.  Specialty training is provided by medical schools (which include physician assistant programs), nursing schools (which include nurse practitioner programs), and other degree and certificate-granting organizations.  The federal and state governments as well as private accreditation organizations, such as the Joint Commission, regulate the provision and quality of medical services as well as the payment for those services.

The healthcare ecosystem is rounded-out with vendors who support the many different functions and needs of healthcare organizations and patients.  For example, even vendors who support Information Technology (IT) functions in the healthcare industry must have specialized knowledge to meet the needs of clients in the healthcare industry given the special privacy and security standards required by HIPAA and the HITECH Act. 

Bottom Line: A Master’s in Healthcare Management Can Advance Your Career

The bottom line here is that there is a lot of opportunity in the healthcare industry for people with all kinds of professional and educational backgrounds and skillsets.  A Master’s degree in healthcare management or healthcare administration can serve two different purposes.  A MS-HCM or MHA can serve as an entry-ticket to the healthcare industry if you are looking to apply the skills you learned in a different industry to a role with a healthcare organization.  An MS-HCM or MHA can also serve as an excellent transitional program for clinicians who want to take on the responsibilities of a management or leadership role.  An MS-HCM or MHA can help you understand the business-side of healthcare, but through the clinical perspective which is a highly sought-after combo among healthcare organizations.

Finally, an MS-HCM or MHA degree program can help those people currently working in a role with a healthcare organization advance their careers by offering them new perspectives and exposure to current trends and research in a variety of different topics, such as finance, operations, strategic planning, leadership, hospitality, and analytics to name a few.  The Bureau of Labor Statistics has shown that people with a Master’s degree earn an average of 19% more in salary over someone with just a Bachelor’s degree.

Take the next step at MSU

Whether you’re exploring healthcare for the first time, looking to move into a leadership position, or hoping to build on your current experience, I encourage you to take a closer look at what our Master’s in Healthcare Management degree can do for your career. Explore the curriculum, connect with our admissions team, and apply today. We’re happy to answer your questions, discuss your background and career goals, and explain how the Master of Science in Healthcare Management can help you take the next step with confidence.

I hope to welcome you to the Spartan community.