What Is Healthcare Administration?

The importance of healthcare administration in today’s healthcare system cannot be overstated.

Healthcare administrators ensure facilities run efficiently and comply with healthcare regulations, an increasingly important role in today’s complex healthcare environment. Their work is a major contributor to the quality of care patients receive and the overall functioning of healthcare institutions.

Whether it’s managing the hiring process for medical staff, overseeing financial operations or ensuring compliance with ever-evolving healthcare laws, healthcare administrators work to ensure that organizations operate in a way that allows healthcare professionals to provide the best care possible.

The Role of Healthcare Administrators

Healthcare administrators are responsible for managing the day-to-day operations of healthcare facilities. They handle a wide variety of tasks, including finance, compliance, human resources and strategy development.

Dr. Leslie Mathew, chair of the Master of Healthcare Administration and MBA-Healthcare programs at Franklin University, furthers this description.

“Healthcare administration encompasses the overall operations and efficiency of healthcare organizations, ensuring that services are delivered effectively. Unlike clinical management centered on patient care, healthcare administrators oversee finances, compliance, staffing, organizational strategy, marketing and all other services to support the entire healthcare system.”

In simpler terms, healthcare administrators serve as the backbone of medical facilities. They ensure that all operations, from the hiring of staff to the management of finances, are executed smoothly. They work closely with doctors, nurses and other healthcare professionals to ensure that the administrative side of healthcare complements the clinical aspect.

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

 

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

Key Functions of Health Services Managers

Healthcare administrators, also referred to as health service managers, play a key role in shaping the overall success of healthcare organizations. Their primary functions include planning, coordinating and supervising the delivery of healthcare services. They also implement policies and procedures that help streamline operations and ensure compliance with healthcare standards.

As Dr. Mathew explains, “A common misconception is that health service managers or administrators only handle paperwork or financial tasks. In reality, they play a crucial role in shaping the quality of care, managing complex operations and human resources and implementing strategies that impact both patient and organizational success.”

Health Administration in Different Settings

Healthcare administration is a versatile field. The specific duties and salaries of professional administrators vary depending on the type of healthcare facility they work for.

Hospitals

In general medical and surgical hospitals, healthcare administrators may serve in roles such as chief operating officers, finance directors or human resource managers. They are responsible for managing large teams, overseeing budgets and ensuring that the hospital or clinic runs smoothly.

According to 2023 data from Lightcast, 16.8% of advertised healthcare administration jobs in the United States requiring a bachelor of healthcare administration stem from hospitals. 

Long-term Care Facilities

In long-term care facilities, healthcare administrators manage the care of elderly patients or those with chronic illnesses. They ensure staff are properly trained, facilities comply with regulations, and residents receive the best possible care.

Data from Lightcast, collected throughout 2023, shows that 6.0% of advertised health administration jobs requiring a bachelor’s in the United States originate from long-term care facilities.

Public Health Organizations

Healthcare administrators working in public health organizations focus on implementing programs that improve the overall health of communities. They manage initiatives related to disease prevention, health education and environmental health.

Approximately 5.1% of advertised healthcare administration jobs in the United States in 2023 come from public health organizations. It’s also important to know that these postings have noted the requirement of a bachelor’s degree in healthcare administration. 

Physician Offices 

In physician offices, healthcare administrators manage smaller teams and handle the administrative duties of the practice. They oversee everything from billing to patient scheduling, ensuring the practice operates efficiently. 

Lightcast notes that, as of 2023, 17.8% of advertised healthcare administrator jobs in the United States requiring a B.S. in Health Administration come from physician offices. 

Skills and Qualifications Needed in Healthcare Administration

To work in healthcare administration, most employers require at least a Bachelor’s in Healthcare Administration. Some positions, particularly those in larger hospitals or specialized fields, may require a Master’s in Healthcare Administration (MHA) or a related degree.

Exceptions may be made for those without a degree but who have the equivalent in practical, hands-on experience and skills.

Dr. Mathew notes, however, that success in healthcare administration requires more than academic knowledge; it calls for a specific set of soft and hard skills that are developed throughout one's career.

“Key skills include leadership, financial management, strategic planning, project management and communication. Administrators must also be adept at problem-solving, understanding healthcare regulations and managing teams to ensure the smooth operation of the organization.”

Healthcare Certifications

In addition to healthcare management education, obtaining certifications in healthcare administration can give you a competitive edge in the job market. Certification programs often focus on specific areas of medical and health services, such as health information management, medical coding or compliance.

Some of the most recognized certifications in healthcare administration include:

• Certified Healthcare Administrator (CHA). This certification is ideal for individuals looking to demonstrate expertise in healthcare systems management, leadership and organizational strategy.
• Fellow of the American College of Healthcare Executives (FACHE). A prestigious credential that demonstrates advanced competency in healthcare management, particularly for those aiming for senior leadership roles.
• Certified Medical Manager (CMM). Designed for administrators working in physician practices, this certification focuses on managing the unique financial, operational and regulatory challenges faced by smaller practices.

Certifications not only add to your credibility but also provide opportunities for continuous learning and staying current with industry trends.

Specialization

As you progress in your healthcare administration career, you may want to consider specializing in a particular area to increase your value in the job market. Specializing in one of these areas allows you to become an expert in a particular field of healthcare administration, making you more competitive for advanced roles.

Some areas of specialization include:

• Healthcare Finance. Managing the financial health of healthcare institutions, focusing on budgeting, revenue management and resource allocation.
• Health Information Management. Overseeing the collection, management and security of patient data and medical records.
• Operations and Project Management. Leading teams to implement and oversee large-scale projects that improve operational efficiency and patient care.
• Healthcare Policy and Compliance. Ensuring that the organization adheres to healthcare laws and regulations, reducing the risk of fines and legal issues.
   

The Growing Demand for Health Administration Professionals

The need for healthcare administration professionals is growing, driven by several factors, including an aging population and evolving healthcare regulations. According to labor statistics from Lightcast, jobs in healthcare administration are expected to increase by 14.6% in the United States through 2033, reflecting the increasing need for qualified professionals.

As Dr. Mathew points out, “While not directly involved in patient care, healthcare administrators create the framework that supports quality care. By managing resources, improving processes and ensuring compliance with healthcare standards, they indirectly contribute to better patient outcomes and overall satisfaction."

How to Start a Career in Healthcare Administration

If you're interested in starting a career in healthcare management and administration, there are several steps you can take to get started. The first step is to pursue a relevant degree, such as a bachelor’s degree in healthcare administration. This will provide you with the foundational knowledge needed to succeed in the field.

In addition to formal education, gaining experience through internships or entry-level positions is also an important step. This will give you hands-on experience and help you develop the skills necessary to advance in the healthcare industry.

Networking with professionals in the field and continuing your education through certifications or advanced degrees can also help you stand out in the job market.

Franklin University's Bachelor's in Healthcare Administration Program

Franklin University offers a comprehensive Bachelor's in Healthcare Administration program designed to prepare students for a successful career in healthcare management. 

The program covers all aspects of healthcare administration, from financial management to strategic planning. And, with a flexible online format, the program allows students to balance their education with work and other responsibilities.

Plus, if you're already certified, licensed, registered, or have completed an associate degree in healthcare or an approved related discipline, you could receive credit for what you already know. This will help you advance your education if you choose to do so.  

If you're ready to take the next step in your career, check out Franklin University's Bachelor's in Healthcare Administration. Learn more about the program, apply, or request additional information today.

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