In the current healthcare environment, leaders with a unique blend of clinical and managerial skills might very well play the critical role in shaping the direction of the healthcare system. With a desired goal of moving the U.S. healthcare system towards a value-based delivery system, we review the research on physician management education. This paper aims to advance the health industry’s ability to identify, develop and leverage those physician managers of tomorrow who have the greatest potential to serve as thought leaders who help create and implement initiatives that create value. We conduct a literature review and outline the research on management education, with a specific emphasis on physicians. We then identify gaps in the existing literature and propose a research agenda emphasizing a) the measurement of educational outcomes (individual and organizational), b) determination of the most effective educational timing/modality, c) clarification of what physician managers need to be able to accomplish (competency-based) in managerial roles, d) further development and evaluation the role of mentoring, and e) increasing the strategic focus in physician management education.