As physicians look to diversify their skill sets, whether it be with the goal of getting leadership positions at their clinical jobs, wanting to make a career transition, or wanting to pursue a side gig, a question that often comes up on our physician communities is whether an additional degree such as an MBA (Master of Business Administration) is helpful or worth it. Since doctors aren’t taught much about the business of medicine in medical school, on the surface it may seem that getting an MBA is a no brainer that would help to run a private practice, head a medical department, or take on a role in hospital administration. However, the counterargument is that the degree is expensive and comes at the opportunity cost of time, money, and energy. Ultimately, the answer to the question, ‘Is an MBA worth it?’ is that it depends, and pursuing the degree without a specific objective in mind may not yield a guaranteed return on investment. For some, it may open doors to new opportunities, whereas for others, it may be possible to achieve the same end result with 'just' the MD, and without the additional extra letters behind your name. Below, we’ll discuss what factors to take into consideration when deciding whether an MBA will help you meet your goals.
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Common reasons why physicians consider getting an MBA
There are several common reasons why we see members of our communities considering getting an MBA, including wanting to:
Pursue a position in hospital administration
Be a consultant for one of the major consulting companies like Deloitte or McKinsey, or start their own consulting business
Start a private practice and better understand the business of medicine
Take a leadership position in their large private practice
Enter the healthcare technology industry in a corporate role with a company like Google
Find a leadership position in the pharmaceutical or medical device industry
Be a venture capitalist
Be a startup founder
Open the doors for a new career, unspecified
Just learn about the business of healthcare (the lifelong learner in so many of us physicians!)
Benefits of or arguments for getting an MBA as a physician
There are several benefits to getting an MBA as a physician. These include:
Learning about the business of medicine and how operations work
Physicians are highly trained in clinical decision-making and practicing medicine. However, we often have limited exposure to the intricacies of business operations. MBAs can provide the skill sets necessary for physicians to understand finance, strategy, operations, and management, which in turn will allow them to take their business and/or leadership abilities further than they may have with their MD background.
For physicians looking to start their own private practice or take leadership positions in large private practices, the MBA may give you a better understanding of how to manage and grow a business. This includes areas like marketing your private practice, human resources and employee management, navigating benefits packages and financial decisions, developing pro formas for new ancillary private practice income streams or practice expansions, negotiating contracts with payors, and approaching mergers and acquisitions. All of these things can make your practice more sustainable and successful in the long term.
Learning to speak the language, and gaining business skills and acumen
Physicians with MDs and MBAs often say that one of the most beneficial things they learned in business school was how to think and speak like a business person in addition to a physician. Learning the lingo is not only important when trying to follow conversations in business, but also when conveying your points and arguments. You’ll likely learn how to articulate your points more clearly, negotiate better, and brand yourself and your skills to your advantage. All of these things will enable you to better advocate for your end goals.
Develop a network of individuals and organizations
This is perhaps what those who advocate for MBAs most uniformly say that they got out of the MBA. Many voice that they aren’t sure they could have amassed a valuable network as quickly or effectively outside of the MBA program. While there are plentiful opportunities for networking in business spaces without an MBA, going to school and making true friends with people who are going to be in leadership positions across different industries and companies is powerful. Additionally, you’ll have access to alumni networks and get chances to rub shoulders with speakers invited to guest lecture and professors that likely have great networks. You'll also have the brand name of your institution behind you for credibility when reaching out for new connections.
As so many say, “your network is your net worth.”
These people may be the people that invite you to serve on boards, become future business partners, become investors in your company, introduce you to future employees, or provide you with useful connections to people that can help you achieve your goals, amongst other things.
A framework by which to approach problems
Most leadership or entrepreneurship positions will require a lot of problem solving and pivoting. Having a clear framework by which to approach these situations that is backed by tried and true best practices will make you more efficient and effective. You’ll be able to apply lessons learned from case studies and internships to your situation, and avoid having to make the same mistakes as others.
Open doors which may be closed to you otherwise
While you’ll be able to see many examples of people who made it very far in life without an MBA (think of so many of the tech moguls you know), there may be some positions which specifically state that you will not be able to apply without an MBA.
Hospital systems may be more likely to hire physicians with MBAs for the positions of Chief Medical Officer (CMO), Chief Executive Officer (CEO), and Chief Operations Officer (COO), and some may even require that as a job prerequisite. Executive positions in other sectors such as healthcare tech start ups, pharmaceutical companies, and insurance firms are also often more accessible to MDs with the business background an MBA provides.
Cons of or arguments against getting an MBA as a physician
Time and opportunity cost
We all know that one thing most physicians don’t have a lot of is time. The MBA is a huge time commitment that comes with the opportunity cost of not earning money as a physician during those hours you dedicate towards the MBA. Imagine all the other things you could do or money you could earn instead of dedicating to 10-20 hours of coursework weekly. Additionally, if you're a practicing physician, your time away could be burdensome on your colleagues or interfere with your relationships with your patients if you had to cut back your clinical schedule significantly.
Cost of the MBA
Most MBA programs are pretty expensive, although some are certainly more expensive than others. The financial burden of tuition - especially if you’re still paying back student loans - can be immense.
You may not need an MBA to achieve your goals
As alluded to above, many people who are successful entrepreneurs or who hold significant leadership positions don’t have MBAs. As a physician, you’ve already proven that you’re very capable and already hold an advanced degree. This may be enough to get you in the rooms that you want to be in.
It may not open up the doors you think it will, particularly if you do it without a clear objective in mind
While you will undoubtedly learn new things from your MBA program, there’s no guarantee that it will open up doors that you want. This is why it’s so important to understand why you are getting the MBA, and approach the decision with intention. Determine what it will help you achieve that couldn’t be achieved otherwise, and what you should focus on while in business school. We see so many physicians just assuming an amazing opportunity will land in their laps because they have an MBA, and that is not always the case (and in fact, many times isn’t the case). Don’t just get an MBA because you’re thinking about quitting clinical medicine and don’t know what to do next.
Your time may be better spent networking and/or branding yourself, or gaining additional experience
If the role you’re looking for or the goals you’ve set for yourself don’t require having an MBA, your time may be much better spent doing other things that will propel you towards your goal more efficiently. An MBA does not guarantee success, and you’ll still have to do the hard work of proving you’re qualified for the role you’re applying to.
Therefore, you may instead want to spend that time doing things such as establishing yourself as a key opinion leader or thought leader, attending industry conferences and meetups, networking, publishing papers, offering consulting services, getting involved in the health tech space, or taking on advisory roles with startups. You could also take specific courses in things like leadership, AI, or clinical informatics that would help you to specifically acquire the skills you’re seeking without the cost and time of an MBA.
Taking courses on Coursera (PSG affiliate link) or Masterclass can be a great way to learn from business school classes at a fraction of the cost, albiet without the formal degree.
How much can I expect to make as an MD/MBA?
As you might expect, given what a versatile degree the MBA is, the answer to how much the MBA will allow you to make will vary widely depending on what you elect to do with the degree. Many non-executive level physician hospital administrators make in the mid 200,000 dollar range. Hospital CEOs can make millions. Physician entrepreneurs can make anything from zero dollars to exits in the 9 to 10 figure range. If a certain amount of earnings is necessary for you to pursue the degree, do your research and talk to others in the specific field you’re hoping to go into.
When in my career as a physician should I get my MBA?
While it may never be the perfect time to interrupt your career as a physician to pursue an MBA, some times may be better than others for your life situation and career goals.
Unless you get your MBA before or while in medical school, many of our physician members argue that getting an MBA while you’re early in your career may not be the most advantageous time. Reasons include:
Having a little more experience may get you into a better program
You may be too early in your career to know exactly what you want to do with the MBA and therefore may not choose the right MBA program for your intended goals
Having added responsibility during a time when you are still building your clinical skills and when you may have a lot evolving in your personal life may be too burdensome
You may want to be on more solid financial footing before taking on the cost of the MBA
You may not be in a position with your group or employer to take time away from your medical practice
Once you have a better understanding of the career trajectory you desire, you will be able to more precisely pin down when the right time and where the right place is for your MBA.
Some physicians may decide to transition to doing locum work or decrease their clinic time significantly in order to prioritize their MBA education. If you do plan on working clinically simultaneously, you may need to take into consideration the needs of your practice or department when planning your MBA to ensure your practice is not left short staffed.
Pathways to getting an MBA as a physician
There are a few main ways that we see physicians getting MBAs.
MD/MBA program
If you have the foresight to know that you want to get an MBA when you’re applying to medical school, it’s prudent to do your due diligence and apply to an MD/MBA program (or apply to a medical school that has a known dual degree pathway or business school). Typically, this will be a 5 year program. In many, but not all, you may be required to take the GMAT exam, which is the entrance examination for an MBA. If you know what you’d like to do with your MBA, you may want to take your research one step further and find MD/MBA programs that offer specialized tracks within your area of interest, like health policy, healthcare economics, and healthcare financing.
You’ll want to pick the program with the best reputation if possible, as the benefits of being at a prominent business school will pay off greatly in terms of the networks you’ll build, the people you’ll meet, and the opportunities that will be available to you. For example, some healthcare consulting companies only hire from certain MBA programs such as Wharton, Harvard, and Stanford.
In some situations, you may actually be able to offset the cost of the extra year of tuition with a paid internship. These internships may also help you land a coveted job straight out of medical/business school. Of those physicians who opt out of doing a residency or practicing clinical medicine, it’s often enrollees in these programs who elect to go straight to industry. However, we certainly see many MD/MBAs completing residency and practicing as well.
Getting an executive MBA
Many physicians realize that they want an MBA after they’ve already started practicing clinically. In these cases, they usually won’t want to give up their jobs, or sacrifice the practice they’ve built and/or the income that they make, so they tend to look for opportunities to complete the MBA on nights and weekends. Fortunately, there are plenty of these programs as well.
Going back to school full time for an MBA
This is the option that we see the most rarely. The opportunity costs here are quite large in giving up a physician salary during this time, as well as the amount of money that you’ll spend on a full scale program such as this. However, it is an option!
Where should I get my MBA?
Traditional MBA or healthcare specific MBA
As stated above, there are different MBA pathways a physician can follow along the spectrum of a traditional MBA to different healthcare specific pathways. Additionally, some healthcare focused MBAs may be specifically geared towards physicians whereas others may include others who also want to gain expertise in healthcare. Many physicians in our communities have stated that they believe a traditional MBA or a healthcare MBA program that includes non-physicians is preferred as it exposes you to and creates new networks previously unavailable to you as a physician, and provides you with insight and mindsets different from those you learn in medical school.
However, if you are doing the MBA for a very specific purpose or role, a healthcare specific MBA program may be better. For example, if you already know your end goal is to hold the position of a large healthcare system CEO or hospital administrator, and your hospital is paying for you to do a specific program, a physician-focused MBA may be both more efficient and directed for your purposes. Some of these programs actually give you access to the C-suite, such as the CEO, CFO or COO of a hospital, and allow you to attend executive meetings. This experience would be invaluable if you know that’s what you want to do.
Online MBA or in-person MBA
Another factor to consider is whether you want an in-person or online program. Online MBA programs can provide much more flexibility than traditional programs. Regardless of in-person or online, make sure you find programs that offer a flexible schedule and curriculum that will be functional for your work-life balance and other responsibilities. Make sure to research all MBAs for their specific program criteria, class schedule (every two weeks, once a month, etc), cost of the program, and application requirements (is the GMAT required?) to see how it matches with what you want to get out of a program.
Other factors that influence where you should get your MBA
There may also be specific factors that impact your choice. For example, if you want to open as many doors as possible in terms of networking regardless of the cost, you may choose a highly prestigious (and expensive) school like the University of Pennsylvania (Wharton). Alternatively, if you plan on staying in Texas for the indefinite future, you may choose Southern Methodist University to build up your location specific network.
Have discussions with doctors who have done an online track, in-person, healthcare focused, and traditional MBA before making your decision as they may be able to provide unique insight into which program best suits your needs.
How to build business knowledge without an MBA
As mentioned above, an MBA is not a requirement in order to be a strong entrepreneur or business leader. There are many steps a physician can take towards building their knowledge base and business understanding without having to commit to a full MBA program. These include:
Reading business books (see our favorite business books for physicians)
Find a mentor whose achievements and career you hope to emulate. You can find them by attending industry conferences, joining business-focused medical associations, LinkedIn, and even on our own physician community online communities.
Follow discussions on forums related to business in medicine, LinkedIn, and relevant physician communities like Physician Side GIgs
Take some online learning courses that can improve your expertise and help you learn if you’re even interested in the topics an MBA will cover. Coursera (PSG affiliate link) is a great source of these, for example.
Conclusion
Whether an MBA is worth it for you depends on your individual career goals, the time you can invest, how stable you are in your career at this time, and how the MBA will fit into your broader career trajectory. If you find yourself continuing to aspire for more when it comes to leadership positions, entrepreneurship, and your influence on healthcare policy, an MBA can be an excellent investment. However, it’s important to ask yourself if you can achieve the same results without the MBA. If you do elect to pursue an MBA, carefully choose the right program, considering factors such as whether you want a physician specific program, an online versus in person program, how much flexibility your program needs to have, and what opportunities they have for networking.
Ultimately, an MBA can offer physicians the chance to influence healthcare from a strategic and operational perspective, shape the future of medicine while continuing to improve patient care, or pursue new avenues outside of healthcare entirely. For those willing and ready to make the commitment, the benefits can be substantial and we hope some of you will pursue it, as we need more physicians in leadership positions!
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