Being in the healthcare industry, either as a healthcare manager or a healthcare administrator, brings excellent career returns on investment for many reasons. For one thing, the median annual wage for management occupations is $107,360 (May 2022), at least twice the median annual pay for all occupations.
The projected job growth of approximately 1.1 million openings, on average, per year means plenty of career advancement opportunities. Furthermore, medical and health services managers earned $104,830 in median annual wage (May 2022), with a projected job growth of 28% or about 54,700 openings per year, on average (2022-2032).
For another thing, the US healthcare industry is among the world’s largest, with healthcare spending accounting for more than 18.3% of the country’s 2021 gross domestic product (GDP). With an aging population, digital transformation, and workforce talent challenges, among other factors, the healthcare industry’s growth is inevitable, too, meaning more job opportunities for qualified healthcare managers and administrators.
There’s also the fact that the healthcare industry has numerous sectors, such as health insurance, healthcare marketing, and healthcare technology, where healthcare managers and administrators can find their niche and thrive.
While Healthcare Management and Healthcare Administration are terms often used interchangeably, these are two different fields. Knowing their similarities and differences will contribute to your informed choice between these two related if distinct, fields.
Their main similarities are:
- Management of the healthcare organizations’ business aspects including their human resources, finances, and patient services.
- Knowledge of and compliance with healthcare laws, policies and practices, and rules and regulations toward effective, efficient and responsive operations
- Work toward improvements in patient care, including its quality and outcomes, alongside the achievement of resource optimization and cost control objectives
- Hospitals, outpatient clinics, diagnostic facilities, nursing facilities and hospices, and public health agencies are among their popular workplaces. Many also work in the pharmaceutical industry, insurance companies, and other related organizations.
As for their main differences:
- Education and training – A healthcare manager has a master’s degree combined with extensive work experience. A healthcare administrator has a bachelor’s degree in healthcare administration or a related field that, when combined with sufficient work experience, can result in a supervisory position.
- Scope of work – A healthcare manager usually oversees the entire healthcare organization or specific departments of the organization. A healthcare administrator typically focuses on specific functions within the healthcare organization, such as finance, human resources, or information technology.
A Quick Look at Their Differences
Read on for more information about the differences in salaries, job roles and responsibilities, and education and certification requirements between Healthcare Management and Healthcare Administration as academic programs and career pathways:
| Healthcare Manager | Healthcare Administrator | |
| Average Annual Salary | $78,863 | $81,105 |
| Projected Job Growth | 28% (2022-2032) or about 54,700 openings/year | Same |
| Licenses/Certifications Required | Optional | Optional |
| Primary Duties | Healthcare managers are responsible for strategic planning, interdepartmental planning, and overall management of the various functions within the healthcare organization. Their job involves a long-term mindset. | Healthcare administrators focus more on the day-to-day operations of the specific functions assigned to them. These can include operations management, finance management, or quality assurance. |
What Does a Healthcare Manager Do?
Healthcare managers are responsible for the effective and efficient operations of the entire healthcare organizations they work for but with a long-term perspective. Their job requires a balanced approach toward quality patient care and outcomes on one hand and financial viability and efficient operations on the other hand.
If you become a healthcare manager, your list of roles and responsibilities is extensive and varied. But these will also depend on the size of the healthcare organization you work for – if it’s a small organization, then you will likely oversee the entire organization; if it’s a large organization, you will probably be assigned a specific department, such as human resources, or service area.
In general, your roles and responsibilities can include:
- Plan, coordinate, and implement the administrative activities among the departments under your supervision.
- Create strategic plans and programs designed for improved delivery of healthcare products and services offered by the organization.
- Participate in the selection, implementation, and evaluation of information technology systems and other healthcare-relevant technologies toward their effective and efficient use in the organization’s operations and delivery of products and services.
- Perform management tasks in the oversight and supervision of clinical and non-clinical staff members.
- Manage the information related to patients, staff members, and finances, including information digitization, safety and security from threats, and monitoring.
- Perform tasks related to risk assessment, quality assurance, and compliance with rules and regulations.
- Oversee human resources management functions, such as recruiting, hiring, and training staff members, as well as scheduling.
- Manage financial health-related matters, including revenue generation, budget allocations, and spending, to ensure the availability of resources and long-term financial viability.
- Oversee the departments, provide support services, and troubleshoot, if necessary, to ensure effective and efficient operations.
- Purchase new resources, including supplies, devices, and equipment, as well as optimize the existing technology used in the organization.
- Manage contracts and other agreements with external parties
- Negotiate prices and payment and delivery terms with suppliers and vendors
- Gather, analyze, and interpret data in the management of the organization’s operations
- Ensure regulatory compliance
With such crucial roles and responsibilities, the best healthcare managers must possess strong analytical and critical thinking skills, problem-solving and decision-making skills, and communication skills. Their job also demands strong technical skills that will complement their leadership skills.
Healthcare Manager Education and Career Paths
If you already have a bachelor’s degree in Healthcare Management and Healthcare Administration or a job in Business Management, you’re on the right track. Your coursework, which included finance management, strategic management, and operations management, should have prepared you for the challenges that come with healthcare management in general.
A Master’s in Healthcare Management is a definite competitive advantage! Most healthcare organizations prefer applicants for healthcare management positions with a master’s degree in healthcare administration (MHA), a Master of Business Administration (MBA) with a healthcare leadership focus, or a public health (MPH) with a healthcare management concentration.
Earning a master’s degree in any of these fields demonstrates your commitment to leadership and your advanced knowledge and skills with relevant applications in healthcare management.
Likewise, earning a professional certification isn’t required for career advancement purposes, but it’s strongly recommended for ambitious healthcare management professionals. The best include Certified Professionals in Healthcare Quality, Certified Healthcare Financial Professionals, and Certified Medical Practice Executives.
If healthcare management is your chosen career path, you will start with entry-level administrative roles with your bachelor’s degree. As you gain more practical work experience, you can apply for entry-level management roles like an office manager or a clinic supervisor.
Your master’s degree and your extensive work experience, perhaps with a professional certification thrown in, will open doors of opportunities for mid-level management and executive leadership positions.
A Career in Healthcare Management is for you if:
- You have a strong passion for patient care and a genuine interest in being part of the healthcare industry.
- You possess strong leadership skills alongside other soft skills.
- You thrive under pressure and love overcoming challenges.
A Career in Healthcare Management is not a great fit if you:
- You’re not into leadership positions.
- You are resistant to taking risks, facing change, and accepting challenges.
- You’re averse to dealing with a wide range of people with diverse backgrounds.
What Does a Healthcare Administrator Do?
Healthcare administrators are at the frontline of the day-to-day operations of the healthcare organizations they work for. Think of them as the behind-the-scenes face of healthcare while the doctors, nurses and clinical staff members are its frontline faces.
While your specific day-to-day duties will depend on your job title and your assigned functions, you can expect the following:
- Monitor the budget and spending
- Recommend ways of optimizing revenue and minimizing costs
- Prepare financial reports, including budget reports, financial statements, and management reports
- Maintain accurate, complete, and updated medical records of patients as well as personnel records of clinical and non-clinical staff members
- Keep track of physical assets, such as equipment, devices, and supplies, and ensure their quality, safety, and availability
- Maintain and update patient health records, which contain their admission and discharge information, insurance information, and medical treatments
- Create work schedules for clinical and non-clinical staff members
- Address the concerns and answer questions from clinical and non-clinical staff members
- Coordinate with the staff in identifying issues and finding solutions for them with staff members
- Ensure regulatory compliance with the day-to-day.
With such varied roles and responsibilities, the best healthcare administrators possess technical knowledge and skills related to healthcare laws, medical terminology and regulations, administrative functions, and spreadsheets and databases. Their job also demands strong time management, leadership, and communication skills.
Healthcare Administrator Education and Career Paths
Again, a bachelor’s degree in healthcare administration, healthcare management, or business management is an excellent start toward a successful healthcare administration career. However, there are also healthcare administrators who possess bachelor’s degrees in allied healthcare professions, such as nursing, who decide to change careers.
In both cases, a Master’s in Healthcare Administration is a competitive advantage when applying for healthcare administration jobs. The MHA, MBA and MPH degrees are just as valuable in healthcare administration as it is in healthcare management.
With a Doctor of Healthcare Administration degree, graduates are expected to be adept in the healthcare decision-making processes and enhance the delivery of healthcare services. DHA programs develop collaborative, leadership, and research skills.
Of course, extensive and relevant professional work experience is a must to be considered for leadership positions in the complex and competitive healthcare industry.
As with healthcare managers, healthcare administrators can earn a professional certification to demonstrate their commitment to lifelong learning and their leadership expertise. The best include:
- Board Certification in Healthcare Management
- Certified Professional in Healthcare Information and Management Systems
- Certified Revenue Cycle Professional
A Career in Healthcare Administration is for you if:
- You’re passionate about being in the healthcare industry but don’t want the rigor of pursuing a medical degree or the like.
- You enjoy challenges, including solving complicated issues.
- You possess strong leadership skills.
A Career in Healthcare Administration is not a great fit if you:
- You prefer being on the front lines of patient care.
- You don’t like uncertainty and ambiguity.
- You get bored with routine tasks.
In conclusion, a career in healthcare management and administration means excellent pay, career advancement opportunities, and fulfillment in contributing to society. But it has its share of challenges that demand resilience, so think carefully about your choice!
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