Career Guide: Healthcare Administrator

What Is Healthcare Administration?

Healthcare administration encompasses the business and operational side of healthcare used in various medical facilities including hospitals, clinics, nursing homes and more. A healthcare administrator, sometimes called a healthcare manager, manages these non-clinical components to ensure high-quality patient care. If you’re interested in the medical field but don’t want a direct patient role, healthcare administration might be right for you. We’ve compiled a unique career guide to share all there is to know about becoming a healthcare administrator. 

A career in healthcare administration is both broad and specialized. Some healthcare organizations or facilities, like those that are smaller, might have one healthcare administrator overseeing all administration elements, while others may have a team. 

Day-to-day, a healthcare administrator has a variety of roles and responsibilities. 

• Operational management: Collaborate with providers, nurses and other staff to develop, coordinate and implement processes that help daily activities and facility operations run smoothly. 
• Financial planning: Manage budget, billing and resource allocation to effectively bring in and use operational funds. 
• Human resources management: Recruit, train and supervise staff. 
• Regulatory compliance: Maintain knowledge of healthcare laws and regulations and ensure facility adherence. 
• Strategic planning: Create policies and strategies that cultivate organizational growth. 

What Does a Healthcare Administrator Do?

There are a variety of roles that fall under the healthcare administration umbrella. This opens a unique opportunity to be a healthcare administrator within a focus area that interests you most. Let’s look at some common roles. 

• Hospital administrator: Oversees hospital daily operations through planning and coordinating medical and health services, managing staff, ensuring legal compliance and managing budgets and billing. 
• Clinical manager: Manages all administrative aspects of a clinical facility, or an individual department within a facility. This includes onboarding new employees, auditing operations and monitoring budgets while ensuring and optimizing the quality of patient care.
• Health information manager: Oversees patient health information data while ensuring it’s protected and organized for efficient clinic or hospital operation. 
• Nursing home administrator: Manages the daily operations, budget, legal compliance and patient care at long-term care facilities, nursing homes and retirement homes. 
• Practice manager: Oversees the administrative and business aspects of a medical practice including staff management, legal compliance, policy implementation, revenue, billing and patient records. Ideal for an individual who embraces a variety of responsibilities with an interest in all aspects of business.

Skills Needed for Healthcare Administration

A career in healthcare administration requires a specific skill set to succeed. 

• Leadership: Management and oversight strongly require leadership skills. A healthcare administrator oversees non-clinical operations, and to do so, they must be able to initiate projects and direct employees confidently, fairly and effectively. 
• Communication: In connection with leadership skills, a healthcare administrator must communicate clearly. This is important for team members, providers, nurses, patients and patient families to ensure a smooth operation that leads to quality care.  
• Problem-solving: Strong problem-solving skills are paramount as healthcare administrators must address clinical, systemic and human aspects of challenges as they arise.  In addition, administrators must be able to think critically and view issues affecting their organizations holistically. 
• Knowledge of healthcare laws and regulations: Healthcare administrators in any specialty must be well-versed in healthcare laws and regulations to ensure the facility is legally compliant. Additionally, they must stay updated on when and how the laws and regulations change. 

What Education Level is Required?

Education requirements for healthcare administration jobs often depend on the position. However, most require a minimum of a bachelor’s degree combined with hands-on experience. In higher-level roles, a master’s degree may be preferred or required. 

There are a variety of education options you can choose to prepare for your healthcare administration career path. It’s advisable to look at postings for roles you’re interested in and see what they require to determine what works best for your goals. 

Degree Programs 

• Bachelor’s degree: Earn a bachelor’s degree in healthcare administration (like a Bachelor of Science in Healthcare Administration), health services management or a related field. Remember, this level of education is typically required. 
• Master’s degree: Earn a Master of Healthcare Administration (MHA) or a related graduate degree. Advanced degrees are often only required for senior and executive positions. 

Certifications and Licensure 

Different healthcare administration roles may require certain certifications. There are generalized options as well as some that are more specialized. 

• Certified Healthcare Administrative Professional (cHAP): This credential, offered by the Association for the Healthcare Administrative Professionals (AHCAP), validates superior levels of expertise and experience in healthcare administration. It’s also recognized internationally. 
• Certified Medical Manager (CMM): This credential validates competency in managing a physician’s office. It requires an application and successful exam completion. 
• Fellow of the American College of Healthcare Executives (FACHE):  This credential is offered by the American College of Healthcare Executives (ACHE), where you’ll demonstrate competency in healthcare management. Specific requirements must be met, including successful examination. 
• State licensure: Besides a relevant degree, states may have requirements for healthcare administration licensure. It often involves a competency exam. 
• Specialized certifications:  Some roles require specific skill sets that you can gain from certifications in specialized areas. Examples include Certified Professional in Healthcare Risk Management (CPHRM), Certified Professional in Healthcare Information and Management Systems (CPHIMS), Certified Healthcare Financial Professional (CHFP) and Certified Professional in Healthcare Quality (CPHQ).  

Experience 

• Internships: While sometimes unpaid and not always required, these positions give you practical experience in healthcare settings. 
• Entry-level positions: Roles like administrative assistant or department coordinator offer foundational experience. 

Advancement Opportunities 

With years of experience and higher levels of education, healthcare administrators can qualify for more advanced positions. 

• Director of Healthcare Operations: Responsibilities vary based on facility type but essentially involve overseeing and leading administrative operations in a clinic or other healthcare environment. Individuals in this role provide strategic direction and management approaches that contribute to positive employment experiences for medical professionals and ultimately, optimistic patient outcomes. 
• Director of Healthcare Policy and Advocacy: Responsibilities focus on the legal aspects of healthcare facility operations including laws, regulations and the legislative process. Collaborating with external stakeholders to advocate for positive change is integral for individuals in this role as they seek changes that influence healthcare policies and patient outcomes. 

Healthcare Administration Salary and Job Outlook

Both salary and job outlooks for healthcare administration look healthy for the 2023 to 2033 decade. 

¹Bureau of Labor Statistics

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