8.6 Healthcare Administration
Katie Baker
Healthcare administration includes careers where people manage and coordinate the operational, financial, and logistical aspects of healthcare organizations to ensure the efficient delivery of medical services and optimal patient care. Healthcare administrators are often responsible for budget decisions, employee management (including hiring and firing), contract negotiations with unionized employees, obtaining credentialing from third-party payers such as insurance companies, and securing sponsorships or large donors for organizational initiatives. They also play an important role in coordinating community events, such as local public health events.
Healthcare administrators are typically salaried employees rather than hourly wage earners. While the position offers a higher salary, it may also require long or extended working hours, which is an important consideration when pursuing this career. However, the field offers a broad range of career opportunities, as discussed below.
Contributions to Patient Care
Healthcare administrators directly contribute to patient care by ensuring that a standard of care is followed by all healthcare providers under their direction. In addition, administrators ensure that their facility is meeting licensing requirements and providing cost-effective care to the community.
Administrators also work closely with community physicians seeking admitting privileges and help maintain the facility’s visibility and involvement in the community. By organizing public health events and outreach programs, administrators support the health of their community. They may also be involved in planning and developing programs aimed at enhancing patient healthcare.
It is important to distinguish healthcare administrators from office managers or clinical directors, who perform more of the day-to-day management tasks, such as reception, billing, scheduling, inventory, and customer service. Because the career path to administration requires a higher degree, it may be more of a long-term goal for someone like Alma from the chapter overview.
Career Opportunities in Healthcare Administration
Healthcare administration offers a variety of career opportunities. For positions such as chief nurse, degrees in the relevant fields (e.g., IT, HR, and nursing) can be supported with master’s degrees in business or administration. Many positions also allow employees to move up through the ranks, and some companies provide tuition assistance for achieving the appropriate business degree for advancement.
To pursue a career in healthcare administration at an executive level, individuals must earn either a master’s degree or PhD in healthcare or hospital administration. Many successful individuals in this field also hold a master’s of business administration (MBA). These positions are more about administration than healthcare, so a strong background in healthcare is not always required.
Chief Nurse
The chief nurse,