What s the Return on Investment for an MBA for the CT Surgeon

Transcription

1 What s the Return on Investment for an MBA for the CT Surgeon

2 Investment Tuition(etc.) Travel Time Classroom, projects, team conference calls, Alternative costs (value of time) Time away from home Lost personal time Career development Practice development Decrease collections/rvu Conflicts within the practice professional jealousy/ threat

3 Tuition Duke Fuqua Executive MBA Global--Class Profile--Class Size: 55 Average Age: 39 Average Work Experience: 15 years Tuition, fees, supplies: $158,600 Weekend Tuition, fees, supplies $113,600 University of Virginia Darden Executive MBA Tuition, fees, supplies $124,900 University of Chicago Booth Executive MBA Tuition, fees, supplies $162,000 UT Dallas Healthcare Management Executive MBA Tuition only-- $47,700

4 Time Commitments Usually 18 to 24 month programs Classroom time depends on structure Every other Friday/Saturday to every other month Th-Sunday How much face-face vs. distance learning Travel Time Course work time-- Team project time What takes an individual 5 hrs. to do will take a team of 5 at least 10 Depends you know, you don t have to get an A Range was from hrs. week

5 Time Commitment not time value of money it s the money (utility function) value of time Lost work productivity (short-term) Practice development RVU generation Research/Academic papers, grants, reading Lost Personal Time Family (spousal points debit) Own

6 Gain from Investment Compensation little direct Intellectual Capital alternative approach to problems more aligned with heath system leadership and administration Core competencies Finance Accounting Marketing Leadership Organizational structure Decision management Leadership Skills Team based approaches Career Change Networking Entrepreneurial capacity

7 Typical Curriculum Integrative Leadership Experience I (ILE I) strengthen leadership skills. Leadership, Ethics, and Organizations (LEO) prepare effective leaders and managers, Global Markets and Institutions (GMI) reviews basic ideas in macroeconomics and links them to institutional arrangements Probability and Statistics Financial Accounting Managerial Economics Decision Models address complex management problems using formal modeling and quantitative analysis techniques. Analytical techniques include decision analysis, Monte Carlo simulation, and optimization. Marketing Management. Managerial Accounting Global Financial Management Provides an overview of corporate finance, financial markets, portfolio diversification, and asset pricing in a global setting. Operations Management. Corporate Strategy sound strategic decisions under difficult conditions. Leadership and Development addresses leadership as a topic separate from management.

8 Health Care in the 21st Century detailed overview of the health care system's segments and stakeholders, analyzes the industry's evolution, and addresses likely changes within the sector during the next century. Economics and Strategy of Health Sector Management - applies the tools of economics and strategy to the challenges and opportunities faced by product manufacturers, insurers, health care providers, and hospitals. Biotechnology: Management of Drug Discovery - An overview of the biotechnology industry from scientific, clinical, legal, financial, and ethical perspectives. Economics and Management of the Pharmaceutical Industry - An examination of management and policy issues concerning innovation, product commercialization, competition, and regulation in the pharmaceutical industry Health Care Marketing how standard marketing analysis, tactics, and strategy apply within the health sector Health Sector Focus Health Care Operations A course that focuses exclusively on health care services while discussing tools that can be used to improve service and make decisions. Invention to Application Health Policy & Management - Students travel to Washington, D.C. to visit federal institutions, advocacy groups, and non-governmental organizations that are critical to the development of health policy and technology and the delivery of health care services. Medical Device Commercialization - An exploration of the market model for medical products, services, and technologies, as well as an assessment of market need the centerpiece of a company product plan and agenda to forge its place in device history. Provider Strategy This course focuses on organizational innovation, specifically strategies and tactics for provider networks to successfully manage resource constraints as well as insurance and reimbursement issues in order to deliver quality, ethical, and cost-effective care. Health Care Law and Policy bridge the market and legal issues that combine to shape the industry.. Irrational Choices,

9 Funded 50% dept/50% education fund RVU hit of 15% Less lab productivity Internal political strife Christine Lau MD, MBA MBA at Darden School of Business Changed lens viewing problems Network $40K out of pocket Decreased level of anxiety 25 hrs/week monthly Thabout changes in medicine Sa+ 2 weeks/yr Less risk adverse-not afraid to Personal and family time change jobs-failure is OK Consulting jobs Associate program director Process improvement Projects

10 Richard Whyte MD, MBA Vice-Chair for Quality, Safety and Clinical Affairs Wharton Executive MBA SF satellite 50% SOM/ 50% hospital 20 hrs./wk. every other Fr-Sa Personal Free time none for 2 years Decreased RVU/ more call Intellectual Stimulation Different approach to problems more collaborative Credibility with hospital administration same language Much improved operational approach/ better data analysis Job opportunities Better at administrative component medical director of OR

11 Richard Freeman MD, MBA Vice Chair CT Surgery/Medical Director for Cancer Care UT Dallas $30k/yr no assistance 15 hrs./ week +Th-Su every other month/ large on-line component No time off Generally busier every day Alternative way of thinking More aligned with administrators- same language Ticket in the door- health system leadership Leadership positions within the practice groups including cancer services and regional medical director No direct change in compensation but much greater contribution to the groups revenue and margin through new business and payment for adminstrative time

12 Personal Experience 80% tuition benefit that no longer exists No direct impact on compensation No change in administrative titles Substantial change in leadership style/ team building/project analysis/ access to administration Marked impact upon how programs operated e.g. lung transplant background decreasing number of transplants/year Substantial provider turnover including medical leadership business plan for the lung transplant program part of class assignment Focus on bottlenecks and constraints Customer focus-outreach Right sizing the team

13 160 Lung transplants MBA Margin grew from $2.36 to > $9 million Growth coordinators 4 to 14 Pulmonologists approximately 2 FTE to >6 Administrators (transplant center) from 2 to 8 Center Designation Programs of Distinction Designation Dave Zaas MD, MBA Chief Medical Officer PDC

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19 Conclusions Time is the greatest expense, but the tuition is not trivial Most of the gains are more intangible In CT surgery little direct compensation increase Major improvements in the administrative/leadership career components Less risk adverse/ more positive outlook Returns are not necessarily immediate Learn that the ROI is a poor tool for comparing projects because it does not take into consideration the cost of capital Use only when comparing projects of similar time frames (initiation, duration, and capital expenditures)