Is a Healthcare Administration Degree Worth It?

Healthcare administrators are pivotal in ensuring the smooth operation of hospitals, clinics and other healthcare facilities. As the healthcare industry evolves, the demand for these skilled administrative professionals continues to rise.

However, demand aside, many prospective students still wonder if earning a healthcare administration degree is a worthwhile undertaking.

Below, we’ll discuss the essentials of the healthcare administration field, the growing demand for healthcare services managers and the potential career paths for those who pursue this degree.

What is Healthcare Administration?

Healthcare administration encompasses the management, leadership and oversight of healthcare systems, hospitals and entire organizations. It’s a field dedicated to ensuring healthcare institutions run efficiently, policies are followed and patient care is optimized.

While many people think of doctors and nurses as the face of healthcare, administrators work behind the scenes to create a functioning and effective healthcare system.

Dr. Leslie Mathew, chair of the Master of Healthcare Administration and MBA-Healthcare programs at Franklin University, explains that aspiring healthcare administrators can start their career journey by first obtaining the proper education. The most common educational pathway is to complete a Bachelor of Healthcare Administration.

“A healthcare administration degree is a formal healthcare-immersive education that offers a more focused curriculum specifically tailored to the healthcare industry, covering areas like policy, compliance and healthcare systems. The specialized nature of healthcare administration programs equips students with the knowledge necessary to manage the complexities of modern healthcare environments."

Bonus Resource:What is Healthcare Administration? 

Role of Health Services Managers in the Healthcare Industry

Health services managers, also known as healthcare administrators, oversee the business side of healthcare organizations. This can include managing staff, developing budgets, ensuring compliance with government regulations and working with healthcare professionals to improve patient outcomes.

Given the broad scope of responsibilities, healthcare management workers must possess strong leadership, communication and organizational skills.

This is important, as these professionals bridge the gap between clinical staff, healthcare providers and operational management, ensuring hospitals and clinics maintain efficiency and meet patients' needs.

Advance your career in Healthcare Administration while you advance patient care. Download your free career guide.

The Growing Demand for Health Services Managers

The healthcare industry is constantly expanding, driven by an aging population and advancements in medical technology. As these healthcare needs grow, so does the demand for skilled administrators to manage these increasingly complex systems.

According to labor statistics from Lightcast, healthcare administration jobs in the United States are expected to increase by 14.6% through 2033, translating to approximately 3.77 million jobs. This growth reflects the need for professionals who can navigate current and future healthcare challenges while also improving patient outcomes.

As the industry shifts toward value-based care models, healthcare administrators are tasked with finding ways to improve the quality of care while controlling costs. This demand is further fueled by the implementation of electronic health records (EHR) and the push toward more integrated healthcare systems.

Benefits of Earning a Healthcare Administration Degree

Pursuing a bachelor's degree in healthcare administration provides specialized knowledge and opens the door to leadership opportunities within the field. Graduates are well-prepared to step into managerial roles thanks to the degree’s comprehensive curriculum.

Dr. Mathew further emphasizes this point, saying, “A healthcare administration degree provides specialized knowledge in healthcare organizations, regulations and management, making graduates well-prepared for leadership roles in the field. It also offers networking opportunities and a clear understanding of the industry’s complexities, helping individuals navigate the healthcare landscape effectively.”

Development of Essential Management and Leadership Skills

Healthcare administration degrees focus heavily on leadership, management and communication skills. These abilities are highly sought after by employers, as they are critical for managing large teams, resolving conflicts and ensuring operational efficiency within a healthcare facility.

Developing these skills during a healthcare administration program helps students become competitive candidates in a growing field.

Opportunities for Specialization

Many healthcare administration programs offer opportunities to specialize in areas like public health, hospital administration, human resources or health information systems.

Specializing allows students to tailor their education to match their career goals, whether they are interested in managing a hospital, working in healthcare policy or overseeing healthcare technology systems. It also allows them to stand out in a competitive job market.

Additional Career Paths and Higher Salary Potential

In addition to healthcare leadership and specialization opportunities, degree programs often lead to more advanced roles and higher salaries.

According to Lightcast, the annual median earnings for healthcare administrators holding a bachelor's degree in the United States is $75,100 per year, with the potential to earn even more in larger healthcare systems or metropolitan areas.

One of the significant benefits of a healthcare administration degree is the variety of long and fulfilling career paths it can lead to. Healthcare administrators are needed in various healthcare settings, including hospitals, long-term care facilities, outpatient clinics and even insurance companies.

A healthcare administration career can take many forms, including:

• Clinic/Facility Manager 
  • Median Annual Pay (U.S. Bureau of Labor Statistics (BLS, 2023): $104,900
• Medical Secretary 
  • Mean Annual Pay (BLS, 2023): $40,640
• Medical Registrar
  • Median Annual Pay (BLS, 2023): $62,990
• Medical Records Specialist 
  • Median Annual Pay (BLS, 2023): $48,780 
     

Challenges and Considerations

While a healthcare education offers many benefits, many still ask themselves: is a career in healthcare administration worth the effort? It’s important to consider the challenges and weigh them against the potential rewards.

The Average Cost of Earning a Degree

According to 2023 data from Lightcast, the cost of earning a 4-year healthcare administration bachelor’s degree can vary depending on the institution, but it typically ranges from $25,500 to $61,500. This cost can also grow if additional education, such as a graduate degree, is pursued. 

Students should also account for potential additional costs like books, fees and housing. 

Lastly, the complete balancing of the cost of education with potential earning opportunities post-graduation is a must-do for prospective students. This will help them determine how much they can earn and approximately how long it will take them to get a return from their educational investment.

Time Commitment and Balancing Work, Life and Studies

“The primary challenge is the cost and time commitment of pursuing the degree, which may delay entry into the workforce. Additionally, some roles may prioritize practical experience over education, making it important for graduates to seek internships or practical exposure during their studies to remain competitive,” notes Dr. Mathew.

This balance between coursework and real-world experience is critical for securing employment post-graduation.

Bonus Resource: Can You Get Into Healthcare Administration with No Experience? 
 

Next Steps: How to Pursue a Healthcare Administration Degree

For students considering a degree in healthcare administration, it’s important that they choose the right program. Here are a few tips for selecting the best one:

• Accreditation. Make sure the program or the school is accredited by a recognized academic body or healthcare organization.
• Specializations. Look for programs that offer specializations aligned with personal career goals.
• Internships. Choose a program that provides practical healthcare administrator experience through internships or practicum opportunities.
• Cost. Compare tuition costs and financial aid opportunities to ensure the program is affordable and fits within your budget.

Bonus Resource: Is a Healthcare Management Degree Right For Me? 

Charting Your Future in the Healthcare Industry

Earning a healthcare administration degree opens the door to numerous rewarding career opportunities in a growing field.

If you’re ready to take the next step, explore Franklin University's Bachelor’s in Healthcare Administration program and learn more about how this degree can help you achieve your professional goals. Or, take the leap and apply today to get started!

Accelerate Your Career

Get Started - It's Free

How to Break Into or Advance Your Healthcare Administration Career

Get Expert Tips to Help you Excel on the Business Side of Healthcare