Key Takeaways:
- Healthcare administration focuses on managing specific departments, operations, and resources within medical facilities.
- Healthcare management oversees the entire organization, prioritizing strategic planning, policies, and overall direction.
- Both roles require strong leadership, contribute similarly to healthcare delivery, and offer comparable salary prospects.
Many students considering a leadership career in healthcare want to know the difference between healthcare management vs. healthcare administration. This article provides you with vital information. The terms are often used interchangeably. Both jobs are grouped under the umbrella of “medical and health services managers.” But there are unique differences between these two careers. Healthcare administration focuses on the business side of a medical facility. Tasks include managing individual departments and budgets, overseeing day-to-day operations, and managing human resources. Healthcare management focuses on the needs of the entire organization/ medical facility.
The healthcare management career path concerns the “big picture” needs of an organization and patients. These managers plan and execute organization-wide initiatives. They manage the direction of a healthcare facility or system. Health services managers help direct and manage organizational policies and procedures. A healthcare administrator focuses more on individual areas and departments. This involves utilizing and managing human resources within a department. Let’s examine healthcare management versus healthcare administration more closely. Health care managers support the business needs of an organization.
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Students should research the similarities and differences between healthcare management and administration. Preferably, this is a step they will take before choosing a particular field or career path. To better understand the differences between healthcare management and healthcare administration, it is essential to delve deeper into the explanations of each.
What Is Healthcare Administration?
Healthcare administration oversees and manages staffing and other resources for medical organizations and institutions. It also shares specific responsibilities with healthcare management executives. This is to ensure the facility runs efficiently. Administrators are often responsible for an entire facility. But healthcare administration professionals may oversee a specific department for larger organizations. Their job duties are varied and may include the following:
- Keeping records for the staff
- Providing human resource services
- Making and maintaining staff schedules
Healthcare administrators oversee a hospital’s staff. They aim to attract and retain high-quality staff. This ensures the organization functions smoothly and efficiently, delivering quality healthcare. Healthcare administrators focus on what kind of services an organization offers to its patients. They don’t personally administer medical treatment to their facility’s patients. Still, they play a significant role in treatments and options available to all patients. If you want to know more about the profession, check out our article on healthcare administration degrees and what you can do with them. The profession pays really well, making a healthcare administration degree worth the time and effort.
Different healthcare administration careers and job titles may include:
- Hospital Administrator
- Hospital Manager
- Medical Staff Directors
- Financial Manager
- Ambulatory Care Manager
- Community Health Centers Manager
- Medical Coding and Billing Manager
- Database Administrator
- Senior Care Staff Manager
Where do healthcare administration professionals work?
Most healthcare administration professionals work in hospitals and health clinics. However, their services are essential for managing staff in any medical organization or related institution. Other top employers in healthcare administration include the following:
- physician offices
- government agencies of health
- nursing facilities
- universities and research institutions
- outpatient care centers
These medical and health services professionals make a profound impact on patients, organizations, and their staff. Simply put, they touch upon all aspects of staff and process management. This includes various units, departments, floors, or an entire facility within a healthcare setting.
Are career paths for healthcare administration professionals in demand?
According to the Bureau of Labor Statistics, there is an increasing demand for medical and health services managers. This includes leadership positions for healthcare administrators. Jobs in the field are projected to increase by 28% through 2031, resulting in a total of 136,200 new jobs.
What are the duties of a healthcare administrator?
The main goal of healthcare administrators is to ensure that their facilities are equipped. They must have sufficient supplies and staff to operate efficiently and treat patients effectively. They work directly with the healthcare professionals who work with patients, rather than with the patients themselves. Their primary duties include:
- Developing and implementing policies for employees
- Create schedules for employees
- Provide human resource services to employees.
- Communicating with employees about changes in policy
- Maintain patient records
- Keep an inventory of the facility’s stock and supplies.
- Develop a supply chain management plan to increase efficiency.
- Ensure that the facility and its departments are adhering to budgets and plans.
- Measure the population health of a facility’s patients to assess the facility’s success.
- Create, maintain, and update filing systems for patient medical records.
- Measure risks and develop plans for risk management.
- Hiring and training new employees to fill in new positions.
- Ensure their facility or organization is up to code and always following regulations and laws.
Healthcare administrators are leaders. They apply healthcare principles and methodologies to manage people and processes. They support policies that deliver care and services impacting patient populations. Their career paths demand they stay on top of trends related to:
- Healthcare economics
- Healthcare quality
- Healthcare reimbursement
- Regulatory compliance
- Health disparities
- Healthcare information systems
- Healthcare project management
A bachelor’s degree in healthcare administration provides students with a foundational knowledge base. This degree in healthcare prepares them for a successful career in the field. Students can begin with entry-level positions or pursue graduate studies for an MA or MS in Healthcare Administration. Some schools also offer an MBA in Healthcare Administration. Degree programs align with the Association of University Programs in Health Administration (AUPHA). This organization has identified four critical competencies for healthcare administrators:
- Communication skills
- Critical thinking skills
- Computational skills
- Social and cultural context analysis skills
What Is Healthcare Management?
One key difference between administration and management lies in the accounting aspect of healthcare management. Administrators focus more on a business-inward, patient-focused approach. Healthcare managers are more concerned with the business operations, including financial aspects.
In terms of career paths, healthcare management involves the general management of a healthcare facility. An example would be a clinic or hospital. A healthcare manager oversees the facility’s day-to-day operations, ensuring that it runs efficiently. Their duties are diverse. They may include managing the facility’s practitioners’ goals, overseeing and managing the budget, and assessing the community’s needs. Health services managers are typically more concerned with business aspects. These might include financial management, supplies, and the facility’s maintenance. They also ensure that the healthcare facility is financially stable.
Healthcare managers coordinate with healthcare administrators. Together, they ensure the smooth operation of the business. These two branches also work together to make decisions about:
- performance evaluations
- budgeting
- social media updates
- staff expectations
- billing
They collaborate with medical staff leaders on various issues. These could include department budgets, medical equipment, and operational goals.
They ensure that the healthcare provider they work for has a healthy balance between goals and budget. Healthcare managers work within healthcare organizations to manage the business side of their operations. This ensures that the people who work there can continue to provide their services and receive their salaries.
What are the duties of a healthcare manager?
The duties of a healthcare management professional include any task related to operations and the facility’s budget. They ensure that the facility’s employees have the necessary tools and resources to perform their jobs effectively. This could include scrutinizing department budgets, for example. Managers are also responsible for supplying the facility with everything it needs to provide patients with the best care.
Healthcare managers focus on researching, creating, and implementing a business plan. They also develop business strategies that will help the facility reach its goals while staying within budget. Managers keep track of medical regulations and laws to ensure their facility is in compliance. Their essential duties include:
- Hiring and training staff
- Meeting and coordinating with various department heads of healthcare organizations
- Maintaining records for the healthcare organization, including services rendered, information on supplies and equipment, and data on current patient counts.
- Meeting with investors and boards with an interest in the business
- Searching for ways to improve the efficiency of the facility
Healthcare management focuses on preparing graduates for various job titles in healthcare. These may include healthcare supervisors, clinical directors, health coordinators, and nursing home facilitators. They maintain a good relationship with doctors, nurses, and all department heads. Managers often have degrees in healthcare management. They design patient care surveys, address any patient complaints, and ensure patients receive quality care. Depending on the organization’s size, they may act as spokespersons when liaising with the media.
Different healthcare management positions may include:
- Executive Director in a hospital
- Practice Administrator
- Public Health Director
- Social Welfare Administrator
- Health Advocate
- Health Services Manager
Where do healthcare management professionals work?
Health care managers typically work in hospitals, clinics, and nursing homes. They work alongside their healthcare administration counterparts. Their place of work could include any healthcare organization or facility that offers health services. These could range from healthcare facilities, such as large hospitals, to nonprofits.
Are healthcare management professionals in demand?
Healthcare management professionals are increasingly rising in demand. The Bureau of Labor Statistics projects a positive job outlook for this particular healthcare industry. Healthcare jobs in this subfield are expected to increase by 18%, or 71,600 new jobs, through 2028.
A bachelor’s degree is the lowest qualification for a healthcare management professional. It provides learners with academic and industry knowledge of a healthcare business environment. Those with associate’s degrees can get into entry-level positions with healthcare organizations. Then, they can work on their bachelor’s degree program for further advancement. With this degree in healthcare, they get a foundational knowledge in leadership skills and business aspects like:
- policy
- operations
- accounting
- organizational and healthcare facilities management
- healthcare law
- ethics
- compliance
- quality assurance
- medical records
- health information management
A healthcare management student may choose to specialize in a particular area through a particular degree in healthcare. Doing so will help develop the skills to advance in their position. It will help students move into leadership roles in various areas. These could include general management, practice management, data analytics, quality management, supply chain management, and overall running a healthcare organization. Bachelor’s in healthcare management salary is a great starting point. To earn more and grow in their careers, a master’s degree is a good career option.
There are many job opportunities for students considering healthcare management vs. healthcare administration. With the proper education, students can enter successful administrative and healthcare management jobs. Both fields require specific leadership and soft skills. With experience and advanced degrees like master’s degrees or above, they can move to executive or C-suite level roles.
Which pays more, healthcare management or healthcare administration?
The median annual salary can vary based on several factors, including education, experience, location, organization size, and employer. A bachelor’s degree in healthcare management will yield a salary higher than that of an associate’s degree. Students must pursue graduate studies or acquire additional leadership skills to advance their careers. With more experience and education, one’s earning potential is likely to increase.
- The average annual salary for a healthcare administrator in the United States is $92,526.
- The average annual salary for a healthcare manager in the United States is $92,352.
How To Get Started Toward Future Career Goals: Educational Requirements
The first step in becoming a healthcare professional is to get the proper education and degree. Students can gain a head start in their healthcare careers by selecting the appropriate degree level (e.g., bachelor’s degree or master’s degree), courses, and specializations. Immersive classes and diverse topics will prepare them for the next steps in their professional life.
The degree choice will depend on whether they want to work more on the administrative side or in management. This will determine whether they should pursue a healthcare administration program or a master’s degree in healthcare management. Often, healthcare administrators require only a bachelor’s degree in healthcare administration to enter the field. Healthcare managers may need a master’s degree, MS, MA, or a Master of Business Administration (MBA) in Healthcare Management.
Sources
- The Commission on Accreditation of Healthcare Management Education (CAHME)
- Bureau of Labor Statistics (BLS)
- ZipRecruiter
- Indeed
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