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The Early Career Progress of Baccalaureate Healthcare Management
The Early Career Progress of Baccalaureate Healthcare Management
The Early Career Progress of Baccalaureate Healthcare Management
ARTICLES
Abstract
Programs in healthcare management are increasingly asked to demonstrate
program outcomes by identifying graduates working in the profession of
healthcare management. In particular, standards under AUPHA’s certifica-
tion process for undergraduate programs require that programs identify
programmatic and educational outcomes. However, little is known about
the career track of undergraduate healthcare management graduates.
This paper describes management roles and settings for the graduates of
a baccalaureate program in healthcare management, and presents salary
and career progression information obtained from a recent alumni survey.
Findings and implications are important to highlight the success of program
graduates, and support the value of undergraduate programs in healthcare
management.
Introduction
The opportunities for employment in healthcare management continue to
be strong, and the demand for healthcare managers is expected to increase
an additional 30% by 2012 (Bureau of Labor Statistics 2006). Undergraduate
healthcare management programs have assumed a major role in meeting
the demand for healthcare managers (Thompson 2005, 2007). In 2005, there
were 35 undergraduate programs in healthcare management, 13 candidate
programs and 6 associate programs certified by AUPHA (AUPHA 2005).
Please address correspondence to: Jon M. Thompson, PhD, Professor & Director, Health Ser-
vices Administration Program, James Madison University, MSC 4301, Harrisonburg, Virginia
22807 E-mail: thompsjm@jmu.edu, Telephone: 540/568-3472,
Fax: 540/568-3336.
360 The Journal of Health Administration Education Fall 2007
Literature Review
There are two streams of literature that have guided the present study. The
first addresses the employment of graduates of healthcare management
programs. The limited published literature that exists for employment of
graduates of baccalaureate healthcare management programs in the U.S. is
based on information from the mid-1990s. The primary source of B.S. de-
gree employment information at that time was a study by Shea and Mucha
(1995), who presented information profiling employment of graduates of
one undergraduate healthcare management program. The authors drew
upon the work of Tournigy and LaFrance (1983), noting that while hospitals
provided the majority of employment opportunities in the period 1980-81,
the proportion of graduates working in hospitals had declined to just over
Early Career Progress of Baccalaureate Healthcare Management Students 361
25% by 1995 as other settings such as long term care facilities, HMOs and
insurers, and physician practices increased their employment of bacca-
laureate healthcare management graduates. Also, Shea and Mucha (1995)
described employment opportunities in various sectors of the healthcare
industry by analyzing sector growth trends and environmental influences
affecting these employment sectors. An additional published study was
completed by Swartz-Ilan et al. (2005), but this study examined graduates of
an undergraduate program in Israel that was developed to prepare managers
to work in the Israeli health system, and therefore, was not specific to the
U.S. The authors found that, while the majority of responding graduates
(56%) perceived that their degree served as a springboard to their career,
only 42% of graduates were working in the government health system at
the follow up point in their study.
More recent studies have examined gender differences in career pro-
gression in healthcare management; however, these studies have focused
exclusively on alumni of graduate programs in healthcare management.
MacDowell, Short, and Petrochuk (1999) studied graduates of a single
master’s program in healthcare management from 1986-1990. They found
that female graduates, as opposed to males, tended to be either in middle
management positions rather than senior management positions, or out
of the work force altogether. Matus and MacDowell (2005) updated this
earlier study of a single graduate program in healthcare management and
found that the gap between genders when focusing on organizational job
setting appeared to be closing, however, the management roles occupied
by males and females still showed that males were more likely to be in
senior leadership roles.
A second stream of literature addresses the perceptions of employers in
terms of knowledge, skills, and abilities needed by graduates of healthcare
management programs. This literature is more recent and reflects the increas-
ing need for healthcare management program graduates and practicing heath
care managers to demonstrate core management competencies. For example,
Cox and Buchbinder (2005) summarized the results from an employer survey
and identified the knowledge, skills, and experiences that employers desire
in hiring baccalaureate graduates for administrative positions. They found
that employers viewed general management knowledge domains such as
quality assurance/improvement, human resources management, financial
analysis, and marketing as important for baccalaureate graduates. In ad-
dition, the authors found that employers varied in their interest in hiring
program graduates of B.S. programs, with chronic care settings express-
ing a greater likelihood of hiring a B.S. graduate as opposed to a hospital.
362 The Journal of Health Administration Education Fall 2007
Second, as noted above, this is necessary to meet AUPHA’s criteria for full
certification for undergraduate programs, requiring that certified programs
demonstrate program outcomes in terms of employment of graduates.
Third, tracking of program graduates generates important information
and resources by which to maintain and advance program activities. Alumni
of undergraduate programs serve as valuable resources in the classroom as
guest lecturers, as members of program advisory committees, as advisors to
curriculum updates, as preceptors of interns and students desiring project
and or field experience, and as referral sources for employment.
Fourth, tracking of program graduates is helpful for program success
to be demonstrated to various stakeholders. For example, illustrations of
successful job placement and employment of graduates can be a very ef-
fective means to attract new students to a program and boost enrollments,
Early Career Progress of Baccalaureate Healthcare Management Students 363
particularly for those students undecided about their major but interested in
business and the helping professions. In addition, employment data can be
meaningful to profile accomplishments to attract donors to the program with
financial support that can be used to address various program needs.
Also, outcomes data can be instrumental in strengthening relation-
ships with healthcare organizations and expanding internship sites and
job placement options for students. Healthcare organizations that note a
healthy track record of employment of graduates may be more likely to
look to the focal educational organization for graduates when positions
become open or when interns are needed. Also, outcome data can be used
to demonstrate program success to university administration, legislators,
and other academic stakeholders who may use such information to increase
program support such as faculty lines, funding, and other special consid-
erations for the program.
Finally, tracking changes in employment of graduates over time is
important in order to observe trends and patterns of employment of gradu-
ates, as well as movement within and between employment sectors. This
information allows program management to assess whether program goals
for entry-level placement of graduates are being achieved and/or whether
important shifts in type and setting of positions are occurring.
education courses, faculty shortages, high teaching loads, and larger class
sizes have left program faculty and leadership strapped for resources and
unable to devote the time and effort to such an undertaking.
Programs need to realistically identify ways to overcome these chal-
lenges to ensure that meaningful program outcome data can be obtained
and used to demonstrate program successes.
Methodology
An alumni survey, which is seen by healthcare management programs
as a key method to gain information about their key stakeholders and
customers (Lowe 1997), was developed by program faculty of the Health
Services Administration (HSA) Program at James Madison University. In
addition, the previous literature shows that alumni surveys have been a
valuable source of gathering important information about program gradu-
ates (Shea and Mucha 1995; MacDowell, Short and Petrochuk 1999). The
university, which has four faculty and approximately 100 students in the
HSA major, is a large, comprehensive, public university with about 16,500
total students, and located in a large mid-Atlantic state. The university
is a traditional residential university with an upper division program,
where students typically begin taking major courses their junior year, and
complete all didactic courses on-campus in a traditional classroom setting.
Students earn a B.S. in Health Services Administration upon completion of
required courses, and a General Business minor by completing 21 hours of
core business courses.
The survey included questions reflecting the following areas: evalua-
tion of the program; evaluation of specific course offerings; evaluation of
course content, teaching and learning techniques; employment and position
history; graduate school attendance; salary information; years employed
in health services administration; contact information; and ways to main-
tain involvement in the program. The survey was pre-tested with a small
sample of students, and modified based on feedback to improve readability
and ease of completion. This paper discusses only the specific findings
that address the graduates’ perception of their career preparation, career
history/progression and related employment information, and graduate
school attendance. These variables were measured as follows:
• Perception of Career Preparation. Alumni were asked to rate the degree
to which the program prepared them for their career (“Very well”,
”Well”, “Neutral”, “Not so Well” or, “Poorly”).
• Employment Status. Alumni indicated their employment status as
“employed full-time”, “employed part-time”, “not employed and
Early Career Progress of Baccalaureate Healthcare Management Students 365
not looking for work”, “not employed and looking for work”, or
“other”.
• Current Employment Setting. Alumni indicated specifically, their cur-
rent employment setting (hospital, hospital system, physician prac-
tice/group practice, ambulatory clinic/outpatient clinic, managed
care organization/insurer, retirement community, skilled nursing
home, assisted living facility, consulting firm, accreditation/licensing
organization, public health program, community/voluntary health
organization, other), as well as the name of the firm.
• Career History/Progression. Using the same employment settings,
alumni indicated their job position title, organizational setting and
firm name for each employed professional position since graduat-
ing from the program.
• Graduate School Attendance/Completion. Respondents indicated
whether they completed or are taking any graduate courses, and
whether they completed any graduate degree.
• Salary Information. Respondents were asked to provide their begin-
ning annual salary (first position after obtaining their B.S. degree)
and their current annual salary.
• Length of Employment. Alumni indicated the total number of years
they have been employed in health services administration.
A listing of the 452 graduates of the program from 1991-2004 was
identified from program management files, and reviewed by the univer-
sity alumni/development office to determine the availability of updated
address information for each of the graduates. Once the initial listing was
reviewed and updated by the alumni office, names and addresses were
double checked against current addresses that program faculty compiled
based upon graduate contact with the program. A final, updated listing was
prepared and a cover letter from the Program Director was attached to each
survey and mailed to the graduates for each current address. A total of 396
surveys were distributed, with a follow-up mailing made 3 weeks afterward.
At the close of the response period, returned surveys were coded and input
into an Excel database for descriptive summary and analysis.
This paper provides a descriptive, summary analysis of the information
provided by respondents to the survey. Our analytic plan was to present
the findings in terms of frequencies, means, and other descriptive measures
that allow for the summary and interpretation of quantitative information.
In addition, we report qualitative information that represents the types of
managerial positions held by graduates as well as career history/progres-
sion information as provided by graduates.
366 The Journal of Health Administration Education Fall 2007
Results
A total of 103 graduates responded to the survey, representing a response
rate of 26%. Of the total respondents, 71% were female and 29% were male
reflecting the undergraduate gender mix in our program. Eighty-four
percent reported that they were working full-time, 6% were working part-
time, and 10% were not employed or were in graduate school full-time.
The results described below for “preparation for careers” are based on
all survey respondents (n=103). However, data on length of employment
is based on only full-time employed respondents (n=87), and salary and
employment setting data are based on 79 respondents, as not all full-time
employed graduates reported this information.
Summary data from the survey reveals several key indicators about
employment (these data are not shown in accompanying tables). Gradu-
ates have held an average of 2.81 positions during the time that they have
worked professionally. These positions have typically been held in differ-
ent firms. Overall, alumni reported working in just over 2 firms (2.04) with
females working in more than 2 firms and males working in just under
2 firms. The range of firms worked in was 1 to 5. Just under one-third of
alumni report that they have worked in only one employment setting (e.g.,
hospital, long term care, etc.) with females reporting a higher percentage
(37%) as opposed to males (14%). Most graduates, therefore, have worked
in different settings during their early professional careers. Only 14% of
alumni have had only one position since receiving their B.S. degree. Since
the majority of respondents had worked less than 4 years, this finding
seems plausible.
The average salaries of alumni for their first and current positions, along
with the number of respondents and standard deviations, are shown in
Table 2. Alumni mean salary for the first position is $32,601 and the mean
salary for the current position is $55,110. While mean salaries for males and
females are roughly equivalent for the first position, males have a higher
mean salary when comparing current position salaries for males and fe-
males. Ranges for salaries for females are larger in their first positions, but
are larger for males in the current positions.
Table 2. Mean Salaries, First & Current Positions, Full-time Employment (n, SD)
EMPLOYMENT SETTING
The percentages of alumni working in various healthcare employment
settings in their first and current positions are shown in Figure 2. For the
first position held by alumni, 58% worked in either hospitals or hospital
systems, consulting or “other” organizational settings, such as pharma-
ceutical firms and medical equipment sales firms. Under current positions,
there is a slight shift in employment setting. The percentage of alumni who
are currently working in hospitals or hospital systems dropped to 24%
from 29%, as did the percentage working in managed care organizations.
368 The Journal of Health Administration Education Fall 2007
CAREER PROGRESSION
Alumni report in many instances a progression in their healthcare manage-
ment careers between their first position after obtaining their B.S. degree
and their most recent position. Illustrations of career progression showing
changes in management positions over this time period are shown in Table
4. These alumni career paths are shown as examples of career progression
to create a better understanding of employment patterns for B.S. graduates.
There are two observations regarding career progression for responding
alumni. First, baccalaureate students may progress in their management
roles within the same firm during the early part of their careers, due to
opportunities that have presented themselves and the commensurate skill
sets that graduates have demonstrated. Examples of this, as shown in
Early Career Progress of Baccalaureate Healthcare Management Students 369
Current Position
Clinical QA Auditor, Pharmaceutical Company
Manager, Organizational Performance and Improvement, Hospital System
Analyst, Consulting Firm
Senior Manager/VP, Consulting Firm
Director of Revenue Management, Hospital
Senior Marketing Analyst, Hospital
Executive Director, Retirement Community
Manager, Assisted Living Facility
Review Coordinator, Accreditation Firm
Manager of IT, Hospital
work experience. In examining Table 4, the reader should note that none
of the graduates profiled had earned a Master’s degree, which could have
affected their career progression.
Table 5: Mean Yearly Salaries by Employment Setting, First and Current Positions
Employment First n Current n Mean Years Percent
Setting Position, Position, Employ- Change
Mean Salary Mean Salary ment
Hospital $29,115 14 $55,840 12 4.3 92%
Hospital System $32,722 9 $40,071 7 2.9 22%
Physician
$26,000 4 $42,780 8 3.9 65%
Practice
Ambulatory N /
$32,500 3 N/A N/A N/A
Clinic A
Managed Care $34,883 11 $53,314 5 3.9 53%
Retirement
$22,400 2 $75,000 4 6.5 235%
Community
Licensing/Accred.
$24,000 2 $52,499 2 7.5 119%
Organization
Community
$28,667 4 $32,000 3 1.0 12%
Health Org.
Other $33,270 11 $58,083 19 3.7 75%
POSITIONS ASSUMED
Baccalaureate graduates are assuming responsible administrative and
administrative support positions in a variety of healthcare settings. These
settings can be classified as direct-care organizations, such as hospitals,
hospital systems, physician practices and nursing homes, and non-direct
care organizations, such as consulting firms, pharmaceutical firms, medical
equipment companies, and accreditation and licensing organizations. While
hospitals and hospital systems represent a large employment preference,
the shift from this setting to others is apparent, particularly from the first to
current positions. In addition, these findings support the results of earlier
studies of undergraduate programs that showed increasing opportunities
in non-hospital settings (Shea and Mucha 1995).
COMPENSATION
Compensation received by graduates has increased considerably between
the first and current positions, increasing on average by 69% during this
time. In addition, there is large variation between males and females in
their current compensation levels. Although male and female graduates
earn comparable mean salaries in their first position, the mean salary for
males in their current positions is 30% higher than that for females. This is
supported by other studies addressing master’s degree programs (MacDow-
ell, Short, & Petrochuk 1999). Finally, there is large variation in graduates’
salaries across healthcare settings, with graduates working in retirement
communities earning an average of $75,000 currently and graduates working
in consulting currently earning an average of $59,500 per year. The largest
increases in compensation for graduates from their first to current positions
were noted for those employed in retirement communities (increase of
235%), assisted living firms (increase of 106%), and licensing/accreditation
firms (increase of 119%).
Conclusion
In summary, the alumni data has provided helpful information for our pro-
gram to assess programmatic outcomes for our graduates. Such program
outcome information is helpful to demonstrate program accountability,
and to enlist the assistance of graduates as resources to strengthen the
program. Moreover, this information is valuable for use in communicating
with potential health services administration majors.
Most importantly, data obtained from alumni through a survey of
graduates has been instrumental to effectively track graduates over time.
Data generated through alumni surveys has helped assess employment
practices of graduates, salaries, changes between employment settings and
firms during the early part of careers, and other professional outcomes such
as graduate school attendance or master’s degree completion. The data
discussed herein also provides baseline measures for on-going assessment
of these important outcomes over time.
374 The Journal of Health Administration Education Fall 2007
LIMITATIONS
There are several limitations of our study that should be noted. Findings are
from one undergraduate program and may not be reflective of the experi-
ences of other programs. Programs show variation, and reflect differences
along a number of dimensions including enrollment/program size, resi-
dential vs. distance-based courses/degrees, market/catchment area served,
areas of specialization offered, and degree of faculty assistance provided
students in terms of placement and job referral, among other factors. These
factors may affect employment opportunities after graduation. Because our
study did not address these factors, our findings—reflecting a traditional,
undergraduate residential program—may not be generalizable to other
programs in the U.S.
In addition, these findings are based on a cross sectional analysis of data
from a convenience sample of respondents. We were unable to profile the
working situations of all graduates, and findings are based only on those
alumni who responded to our survey. Our ability to survey a broader range
of graduates was limited by the lack of contact information for many gradu-
ates as well as the reluctance of some graduates to respond to the survey
overall or to provide specific requested information (e.g., salary). Also, it
is possible that graduates who did not respond to our survey may have
different employment experiences that those who did respond.
Finally, the program has existed since 1991 and therefore findings are
based on those who have since graduated. Graduates of older programs
may experience a very different picture of healthcare management career
progression. Graduates of older programs may have remained employed
with organizations for a longer period of time, while recent graduates may
be more fluid with respect to employment due to greater employment
opportunities stemming from continuing expansion of the health services
industry.
Acknowledgements
The authors are grateful for the contribution of Dr. Thomas R. Syre, as well
as the helpful comments and suggestions that were given by three anony-
mous reviewers on an earlier version of this paper.
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