Q) I have 5 years of experience in Technology as a Software Engineers. For the past couple of years, I was part of a healthcare project. My role switched from Technology to a Techno-functional role to now more as a subject matter expert. Initially, it was a challenge to get used to the new lexicon, but I am enjoying my new role and feel an MBA will help me make a complete transition in the industry as a Consultant. After initial research, I shortlisted MIT Sloan for the brand and the numerous hands-on experience offered in the Healthcare industry. Is an MBA from MIT Sloan a good idea for my post-MBA goal?
It is refreshing to see applicants researching based on their passion and not just post-MBA salary. I would recommend everyone to study up on their post-MBA industry, before even shortlisting their top 5 MBA programs.
60% of the questions that we get in our free MBA Admissions consulting session, start with, “my GMAT is x my GPA is y, what are my chances for z MBA program’. So thank you for the thoughtful question.
As a subject matter expert, you might know the latest trends, but for our readers, I want to break down the outlook on the healthcare industry:
• Aging Population
Despite the gloom and doom that we often see in the news, our global healthcare services are doing a fantastic job, with an estimate showing that by 2021, the average life expectancy of a global citizen to increase by a whole year (73 to 74.1). A prime reason for the increase in average is the fewer infant mortality rate, improved sanitation, increase in average global income, better reach of the vaccination programs, lower deaths from AIDs & Communicable diseases (50% drop in 10 years – 2005 to 2015), and overall improvement in education in the developing world.
• US Healthcare Inefficiency
Since you are considering the United States as a post-MBA location, a data that will have an immediate impact is the healthcare cost. Despite the government spending 16.9% of their GDP on healthcare, the per person cost of healthcare in the United States would continue to rise and reach $11,356 in 2021. The cost is the highest in the world. It is good news for those candidates entering the industry as they can benefit from the cost – not a popular opinion to give in MBA Admissions Consulting Q&A. But for those Entrepreneurs, who are pairing technology with healthcare database and sensor-based diagnostic technology, the options to introduce innovation and reduce cost are limitless.
• MBA Consulting Opportunities in Healthcare
The increased cost of healthcare is not offset by an increase in salary. The median income of an American household is $58,882 (a 4% growth), but from 1970, the salary of the middle and lower quintile population has remained stagnant. That is half the US population. Healthcare service providers are already under pressure to reduce costs. Many have sacrificed their margins to meet the societal inequality. Innovation in redefining healthcare delivery, funding the cost of medicines and Just in Time staffing are already under consideration, but a real innovative solution is far from reality. As a consultant, the problem is an interesting one to spend your time on.
Massachusetts hosts Harvard Medical School (third oldest medical school in the United States) and Massachusetts General Hospital (one of the most profitable hospitals in the world - $201 million in total profit), with a connected eco-system of pharma and biomedical device firms.
On R&D, California is quickly catching up with Massachusetts through a 54.8% increase in BioTech Research & Development employment, but still, regarding numbers, MA is #1 among the states. The widely popular biotechnology cluster, advanced degree offered by 40 colleges in Life Science, and National Institutes of Health's per capita funding of $357 (highest in the US), demonstrates that MA is a long way ahead in the industry.
The Boston Area cluster, emerged in the late 70s when Biogen and Genzyme, led the wave and pushed Kendall Square as the focal point for innovation.
Within a 1.5 km radius, over 120 biomedical firms compete for space and venture capital. Despite a $700 per sq. meter rent for the lab facilities, start-ups persist in Cambridge primarily for one stat – over 57% of VC investment in Biotech for MA, and 46% of MA Biotech companies with IPO was from Cambridge.
Another reason is that top 2 of the 5 NIH (National Institutes of Health) funded hospitals in the US were from Boston, allowing drug companies to perform trials, and streamline the process of drug commercialization.
MIT Sloan MBA – Healthcare industry
At MIT Sloan, Students can choose from 230+ electives that are categorized under 9 themes of which Healthcare is among the three industry-focused themes (other two being – Technology and Finance). The real value for an MBA program is offered through internships, projects, simulations and industry-focused engagements.
In Sloan MBA, the Healthcare lab offers students a four-month experience to work on the entire Healthcare eco-system: Analytics, Marketing, Operations, and IT, with special attention on delivering satisfactory and affordable services for all patients. So you will be working on the real problem – affordable healthcare, during the program.
If you want to understand how the US healthcare eco-system interoperates, the Healthcare Certificate program is ideal for your post-MBA goal to enter Healthcare consulting.
Be aware that even if an industry is doing well, the incoming MBA class might not always consider it. The competing offers in Finance, Consulting or Technology is hard to resist. MIT Sloan MBA luckily has good placement in Consulting and Healthcare – two potential post-MBA industries for you.
Pharma/Healthcare fetched a based salary of $120,000 – attracting 5.3% of the class. Healthcare is also one of the largest clientele that a Management Consultant is likely to serve. So in either of the case, MIT Sloan MBA is a good choice.
Hope you liked our analysis.
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