for private practitioners, is an mba overkill?

[rcd]

i've heard the horror stories of doctors mis-managing the financial aspects of their practice, but i have two questions:

first, i wonder if that is more because they just don't care about the money enough to manage it themselves? of course, any of us would love for this to be the answer, so maybe i'm biased in this one...

second, i wonder if these claims are exaggerated, and if paying a consultant for a short time's work is sufficient to get out of financial trouble anyway?


edit: i just found a few posts buried in replies to other topics dealing with this subject. the consensus seems to be that the answer to the title is yes.

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[Law2Doc]

i've heard the horror stories of doctors mis-managing the financial aspects of their practice, but i have two questions:

first, i wonder if that is more because they just don't care about the money enough to manage it themselves? of course, any of us would love for this to be the answer, so maybe i'm biased in this one...

second, i wonder if these claims are exaggerated, and if paying a consultant for a short time's work is sufficient to get out of financial trouble?

An MBA is not necessary for one to run a successful business or practice. However the skills that make one a good physician frequently do not translate to one's being a good businessman or manager. It is certainly useful to have some management skills or background, and some knowledge of basic accounting (financial and tax) and perhaps marketing for pretty much any kind of business or professional practice; I would imagine this type of knowledge can be self learned or can be acquired by hiring the appropriate office staff/managers/accountants. The MBA is a great degree to have for a variety of administrative and consulting jobs an MD might choose to pursue, but not a necessity for an entrepreneur.
I do note (from a law perspective) that it is absolutely the wrong approach to seek consultants to "get out of financial trouble". Get advice BEFORE you get into that kind of trouble!

 

[rgarg3]

flindophile,

that is really cool that you had the opportunity to teach. I'd really like to teach sometime in my in life. don't mind me asking, what did you teach?

rgarg3

I absolutely agree with the advice above. Many people run successful businesses without an MBA. In fact, most do. I agree that some basic accounting and finance can be helpful but it certainly isn't rocket science. I think it mostly takes some INTEREST in the business of running a practice.

I have to wonder if those who get an MBA to run a practice will also get a JD to attend to their legal affairs, and a degree in computer science so they can improve the office software? Where does it stop?

I am not against MBAs. I taught in MBA programs for years before going to med school. I think there are some medical areas where an MBA would be helpful -- but not for most clinicians. For clinicians, I suspect the time might be better spent getting more medical training (fellowship, etc). Otherwise, you risk becoming a jack of all trades and master of none.