If you caught the January 29th episode of Shark Tank, you already know that billionaire entrepreneur Mark Cuban agreed to invest in Shaan Patel’s thriving business—2400 Expert. But did you catch the part about Patel’s academic ventures? If not, the entrepreneur and founder of the ACT/SAT test prep service told the Shark Tank panel that he was earning his MD/MBA at Yale and USC. While this dual degree program has already made some serious headway, it looks like Patel’s pitch has placed an even brighter spotlight on this innovative degree combination that has produced the likes of William E. Sanders, MD, MBA and Chief Medical Officer of A4L (Analytics for Life Inc.), Anthony Coletta, MD, MBA and CEO of Independence Blue Cross, and William E. (Gene) Sanders, Jr., MD, MBA and Electrophysiologist, former FDA medical officer, medical device veteran, and new EpiEP, Inc. Board of Directors member.
As you may have guessed, an MD/MBA degree is not just for aspiring doctors looking to build a more profitable private practice. Sure, many MD/MBA programs tout the benefits of being a business-savvy doctor (and there are many), but like Patel, who says he wanted to grow his company and learn about healthcare management, many students are interested in contributing to a better healthcare system, they want more clout in hospital decision-making, they would like to work in large group medical practice administration, and in leadership roles in medical organizations, government agencies, and wellness centers. Some MD/MBAs also have their sights set on leadership positions in health informatics, pharmaceuticals marketing, healthcare consulting, and hospital administration—a field that has traditionally employed MBAs as leaders and MDs as middle managers.
The shift shows. According to an article in The Atlantic, Bain Venture Capital employs a considerable number of PhDs and MDs with a business background in its healthcare venture capital division. The article also mentions thata 2011 study found that physician CEOs performed better than non-medical leadership hospital administrators do, so the higher-ups at today’s hospitals routinely seek out physicians with a solid business background for many of the most coveted executive positions.
Access to a wider variety of roles, greater responsibility and career acceleration, credibility, enhanced business/entrepreneurial skills, and opportunities to effect change are all motivating factors for pursuing an MD/MBA, but salaries and stability have contributed significantly to the rise in enrollment as well. One example: according to CNNMoney/PayScale, “Hospital Administrator” was number five on the list of 100 Best Jobs in America for 2015. Top pay for the position is $207,000 per year and 10-year job growth is an impressive 23%. While the average pay for physicians and surgeons is certainly higher than just about every other occupation ($187,200 median for 2015), at 14% for the 2014-2024 decade, job growth is slower.
The future for graduating MD/MBAs may bright, but the road to completion is definitely a challenging one. For starters, these programs are often offered at the world’s top medical and business schools. Harvard Medical School, Yale School of Medicine, and UPenn School of Medicine are just a few. Further, because programs can be expensive (and many other reasons), the average student cannot afford to take a significant amount of time off from work. This means that they will ultimately end up juggling a demanding job in the industry, a rigorous dual-degree curriculum, residency requirements, and family commitments. Fortunately, because most programs offer the MD/MBA in a five-year timeframe, the total cost that business school would add is reduced. Some schools offer accelerated programs, which could reduce the cost even more.
In the end, though, most graduates agree that the benefits are well worth the sacrifice. Good example: The Atlantic article highlights Harvard MD/MBA graduate David Gellis. By the time Gellis began his residency in internal medicine, he had caught the attention of Iora Health, an innovative primary care practice that was planning to start up in a few cities around the country, says the article. When he finished his residency three years later, the company hired him as a primary care provider. Half a year later, he is helping to lead their Brooklyn practice. “I have an actual management title and responsibilities,” said Gellis, “which is pretty crazy six months out of residency.”
So just where are all of the MD/MBA programs? The Association of MD/MBA Programs lists around 65 programs across the U.S., up from just six programs 20 years ago. More than half of the programs started after the new millennium and between 2011 and 2012 alone the number increased by a promising 25%. The latest addition (not yet on the Association list) is Virginia Tech Carilion School of Medicine and Virginia Tech Pamplin College of Business. The MD/MBA program launches in fall 2016.
Sources
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EpiEP, Inc. Investor Relations. EpiEP, Inc. Appoints William E. (Gene) Sanders, Jr. MD MBA to Board of Directors. PR Web. PR Web, 11 Jan. 2016. Web. 06 Feb. 2016.
Jackson, Abby. "A Perfect SAT Couldn't Get This Guy into the Ivy League - but He Persevered and Now Runs a Business That Makes Millions." Business Insider. Business Insider, Inc., 11 June 2015. Web. 06 Feb. 2016.
Patel, Mitesh S., Vishal Arora, Mamta S. Patel, June M. Kinney, Mark V. Pauly, and David A. Asch. "The Role of MD and MBA Training in the Professional Development of a Physician." Academic Medicine 89.9 (2014): 1282-286. Web. 06 Feb. 2016.
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Smith-Barrow, Delece. "Become a Business-Savvy Doctor With a Joint M.D.-MBA Program." U.S. News & World Report Education. U.S. News & World Report, 01 Oct. 2013. Web. 06 Feb. 2016.
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Viswanathan, Vidya. "The Rise of the M.D./M.B.A. Degree." The Atlantic. Atlantic Media Company, 29 Sept. 2014. Web. 06 Feb. 2016.
