3 Degrees of Healthcare Management: MSHCM vs MBA vs MHA
Last Updated March 25, 2024
The healthcare industry is more dynamic and complex than ever before, and today’s healthcare professionals need to be as agile as the healthcare environment they find themselves working in.
Pursuing an advanced degree is one way for experienced healthcare professionals to build on their clinical knowledge with the analytical, critical thinking and business skills healthcare organizations desire in their leadership, managerial and executive administration ranks. According to the Bureau of Labor Statistics, the demand for medical and health services managers nationwide is projected to grow by 28% between 2022 and 20321.
With the healthcare industry unlike any other “business,” the instructional approach to healthcare management and administration can differ by a college, degree program and the school or department a program is housed in. The Master of Science in Healthcare Management (MSHCM), MBA in Healthcare and Master of Health Administration (MHA) are three distinct educational paths that can provide healthcare professionals with the advanced skills, knowledge and credentials needed for advancement into the ranks of healthcare management.
Master of Science in Healthcare Management (MSHCM)
The Master of Science in Healthcare Management takes a healthcare-specific approach to core business disciplines, such as economics, law, information systems, marketing, supply chain, and strategic management.
“This degree provides the business acumen to be highly successful in running a business—but a healthcare business. It’s business encircled by healthcare,” explains Dr. Michael Rip, Program Director of the Master of Science in Healthcare Management at Michigan State University.
An M.S. in Healthcare Management program is usually housed within a college of business, much like an MBA in Healthcare program. This is where the similarities end. Whereas the MBA in Healthcare focuses on building a well-rounded business professional with the best business practices, skills and application to the healthcare industry, the M.S. in Healthcare Management takes an interdisciplinary approach with the study and application of healthcare management practices as the focus within a business school framework. In essence, it’s healthcare management elevated and optimized by the most effective and relevant business skills, theories and strategies.
For example, just like any business puts a high value on customer service and satisfaction, patient satisfaction is one of the most critical metrics for hospitals. This “is why in fact many hospitals are designed to look like hotels rather than hospitals,” explains Dr. Rip. “They emphasize providing superior service in very good settings.”
With this shift in hospital planning and management in mind, Michigan State’s M.S. in Healthcare Management includes courses on hospitality in relation to the patient experience.
Besides examining hard and fast business disciplines in light of relevant healthcare scenarios, the M.S. in Healthcare Management provides experienced healthcare professionals a business-centered focus to the knowledge and skills needed to make real-world decisions for effective healthcare management, including:
- Critical thinking
- Decision making and problem solving
- Communications and interpersonal effectiveness
- Leadership and innovation
- Strategic thinking
For experienced clinical healthcare professionals looking for a career path beyond patient care and toward the business management side of healthcare, the M.S. in Healthcare Management degree program recognizes and builds on this clinical healthcare knowledge with the relevant skills and expertise the healthcare industry needs in its next generation of business leaders.
MBA in Healthcare
Master of Business Administration programs ground students in effective business practices with a detailed overview of the business world. The core MBA curriculum covers business development, accounting, finance, economics, marketing, management and strategy—all important to understanding and managing the major operations of any business.
An MBA in Healthcare adds the specialized focus of management within the healthcare industry to the general MBA degree, applying these business management and administration fundamentals to the unique requirements of healthcare.
Depending on the healthcare experience of the student, those “unique requirements of healthcare” may not be sufficiently explored in an MBA-based healthcare program. Students may find that they are very much an MBA student focused on the breadth of business practices and knowledge as set by the Fortune 500 companies of the world, and then applied to healthcare management.
“I feel the MBA is not the appropriate degree or training for this industry,” says Dr. Rip. “Healthcare is not based on supply and demand; it can’t run like it’s a ‘product’ to stock and sells. It’s not that kind of business model.”
However, for some students an MBA in Healthcare degree offers a more versatile approach, providing those with clinical healthcare experience but limited business experience the education to possibly move into more business-centric roles, like healthcare marketing or finance. The solid base of business fundamentals and skills offered by an MBA can allow for broader career application and flexibility for those wanting to pursue career opportunities outside of the healthcare industry.
Master of Health Administration (MHA)
The Master of Health Administration is typically offered through schools of public health, allied health, or even by schools of medicine, placing the degree program into a clinical health setting. The primary difference between an MBA in Healthcare and a Master of Health Administration is in what each degree emphasizes.
True to its name, an MBA emphasizes “business administration,” giving students a broader understanding of general business practices to be applied to management within the healthcare industry. The emphasis of an MHA program is healthcare and integrating business practices and skills as they apply in a healthcare setting, such as managing a healthcare department, facility or system.
Most MHA programs are designed with clinical healthcare professionals in mind, the majority of which are graduates of schools and colleges of health and medicine, rather than business schools. Therefore, the MHA generally puts more weight on applied healthcare experience with curriculum that focuses on areas such as population health, healthcare economics, health policy and management of healthcare organizations, while also having those “business” courses seen in many MBA programs: financial analysis and management, human resource management, marketing and communications, and strategic business management.
For clinical healthcare professionals looking for an education that can prepare them for career advancement, particularly within their current healthcare position, the healthcare-centric approach of an MHA program may seem like an ideal path. While some students prefer the specificity of the MHA courses, depending on background and depth of experience and knowledge, a greater business focus may be beneficial, especially for those looking beyond clinical healthcare facilities to sectors such as health insurance or pharmaceutical sales.
“Traditional MHA degrees provide you with a lot of healthcare knowledge, but in fact, not superior business acumen,” says Dr. Rip. “You have to understand the business side of healthcare to have that financial understanding of budgets and be able to adjust your business model to stay solvent—it’s complex.”
Choosing a Degree in Healthcare Management
The MBA in Healthcare, Master of Health Administration (MHA), and Master of Science in Healthcare Management (MSHCM) degrees offer several relatable similarities in course curriculum and soft skill development, but also some very stark differences in the overall focus, instructional style and even the intended outcomes for students.
For the healthcare professional looking to plot out a path for career advancement, the degree option ultimately depends on individual experience, needs, and goals.
If an MBA in Healthcare seems like too much business administration and not enough healthcare, and a Master of Health Administration feels heavy on the healthcare knowledge but lacking in business savvy, then the Master of Science in Healthcare Management may present that middle ground.
1Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, Medical and Health Services Managers. https://www.bls.gov/ooh/Management/Medical-and-health-services-managers.htm#tab-6 (visited March 25, 2024).
*National long-term projections may not reflect local and/or short-term economic or job conditions and do not guarantee actual job growth. Information provided is not intended to represent a complete list of hiring companies or job titles, and degree program options do not guarantee career or salary outcomes. Students should conduct independent research on specific employment information.
