As working professionals contemplate the idea of earning a graduate degree in Healthcare Management (HCM), an excellent question is ‘will I receive a good return on my investment ’? When you look into degree programs in Healthcare Management you must consider how much will the degree cost and how much more money can you make upon graduation. If you enter a reasonably priced graduate program and begin making more money in just a few years, the payoff can be substantial.
What Does Return On Investment Mean?
The concept of Return on Investment (ROI) can be used in the business world as well as to make a determination whether pursuing a graduate HCM degree is worthwhile. ROI is calculated by dividing the return (net profit) by the resources that were committed (the investment). In this case the net profit would be the increase in salary upon completion of a graduate degree. The investment would be the cost of obtaining the degree. The calculation is then obtained by using the following computational equation: return on investment (%) = (Net profit / Investment) × 100.
Will a Graduate Healthcare Management Degree Yield a High ROI?
In 2013, Yahoo Education published an article titled Seven Degrees That Are Worth The Investment. The article used salary information provided by the United States Department of Labor Occupational Employment and Wages. In the article, careers in Healthcare Administration were ranked as the #5 career that is worth investing in higher education. According to the article, the Median Annual Wage of a Healthcare Administrator is $88,580, the lowest paid ten percent earn approximately $53,940 and the highest paid ten percent earn $150,560. When this data is compared with the average cost of a graduate degree in HCM ($15,681 annually according to GuideToOnlineSchools.com), earning this degree can substantially increase an individuals potential earning power.
What is the Approximate ROI for a Master’s Degree in Healthcare Management?
According to the US Bureau of Labor Statistics the average median salary in the United States is $34,750. If an individual working an entry level, salaried career they would earn approximately $53,830 less than the average Healthcare Manager. If that same individual could earn their Master’s Degree in two years it would cost them approximately $31,362 in tuition. Using the ROI calculator return on investment (%) = (Net profit / Investment) × 100, this individual could expect a return on investment of approximately 171 percent. (ROI = (53,830/31,362) x 100 = 171%)
It is obvious that earning a Master’s Degree in Healthcare Management is an excellent investment in your future. While it can be difficult to make the commitment to earning your degree, it is well worthwhile in the long run. It is worthwhile to note that more and more colleges and universities are offering HCM degrees in an online format so students can continue to work while earning their degree. In as little as two years you can start earning substantially more money in a career that is worthwhile and necessary. If you are someone who wants to earn more money, command more respect and be a part of a helping career, a degree in Healthcare Management is an excellent Return on Investment.