Capella University was the inspiration of Stephen Shank, former CEO of Tonka Corporation, who felt that many adults were underserved by traditional universities. He envisioned a high quality university that people could attend from any location.

In 1991, Shank took the first step toward establishing the corporate entity that would become Capella Education Company. In 1993, Dr. Harold Abel, an experienced leader in higher education and former president of three universities, joined Shank to found The Graduate School of America, now called Capella University. Originally, the university offered online Master's and Doctoral degrees in management, education, and human services.Capella University has established innovative and student centered distance learning since 1993. As one of the early distance learning universities, Capella has continued to offer new and innovative programs.

Typical coursework in healthcare administration/management programs healthcare industry. Qualified healthcare administrators and managers are in increasing demand for positions such as Health and Social Service Manager, Patient Accounts Supervisor, Home Health Care Manager, Health and Safety Manager, Health Information Manager, and Health Services Manager.