What Is Health Care Administration? What You Need to Know in 2024

When you visit a doctor’s office or hospital, you likely interact with a receptionist, a nurse, a doctor, and maybe a radiologist or other specialist. But behind the scenes, there’s a health care administrator making sure the facility runs smoothly. 

Health care administration sits at the confluence of business and medicine. It’s a field where you can apply your leadership and organizational skills to make a real difference in people’s lives.

Let’s take a closer look at what health care administrators do, why you might want to consider working in health care administration, and how you can get started on this rewarding career path.

What does a health care administrator do?

A health care administrator (also known as a medical or health services manager) is tasked with overseeing the operations of health care providers. Whether at a doctor’s office, hospital, senior care facility, or outpatient clinic, the health care administrator coordinates the business activities of the facility or department. 

Did you know?

Health care administrators don’t just work in hospitals. You can also work in a pharmaceutical company, behavioral health clinic, governmental organization, health insurance provider, nonprofit, or consulting firm.

Tasks and responsibilities

While the exact tasks of health care administrators will vary based on the size and function of the organization, the role shares similarities with other leadership positions. As a health care administrator, your day-to-day responsibilities might include:

• Ensuring compliance with health care laws and regulations

• Managing finances

• Recruiting, training, and supervising staff members

• Keeping detailed records of medical and office supplies

• Coordinating work schedules for care providers and other employees

• Maintaining patient medical records

• Processing claims for insurance companies

• Improving quality and efficiency of patient care 

Working at a smaller office or facility typically means taking on most (if not all) of these roles. If you’re an administrator at a large hospital, by comparison, you might oversee or work alongside a team of managers, each with a different specialization.

Essential skills for health care administration

As a successful health care administrator, you’ll use your business skills and knowledge of health care policy to make a big impact on your facility (and the patients who come to seek care). In addition to several universal skills (empathy, communication, organization, leadership, critical thinking), you can set yourself up for a thriving career by understanding:

• Budgeting: Deliver quality health care while meeting financial goals.

• Patient care: Understand best practices to help improve the patient experience.

• Health law and policy : Keep up with the latest legal changes to ensure your facility operates legally.

• Software: Billing and coding software, as well as electronic record systems, help keep records and bookkeeping organized.

Why pursue a career in health care administration

Working as a health care administrator gives you the power to change lives by ensuring the best possible patient experience. A doctor or nurse might only see a dozen patients each day. Through your work as a health care administrator, you have the opportunity to positively affect hundreds if not thousands of people. You can have an impact from behind the scenes, without needing a medical degree or direct patient care experience.

Health care administration salary and job growth

The global health care market is expected to grow by nearly nine percent annually by 2022 [1]. This demand can make health care administration a well-paying career option, as well as a rewarding one. The median annual salary for health care administrators in the US in 2021 was $101,340, according to the US Bureau of Labor Statistics [2]. 

Majoring in health care administration

While most health care administrators enter the workforce with at least a bachelor’s degree, exact educational requirements vary by company and function. Let’s take a look at the different types of health care administration degrees, their benefits, and alternatives.

Types of health care administration degrees

Many colleges and universities offer health care administration degrees at all levels. Which one you choose to pursue will depend on your specific career goals. 

Online vs. in-person degrees

No matter which level of degree you choose to pursue, you can choose to complete your studies in person or online. Each option has its own set of benefits and drawbacks.

Studying in person lets you take advantage of the community and facilities available on most college campuses. Class schedules tend to be rigid. This can make it difficult to manage a career, family, or other obligations at the same time. If you have a specific health care administration program in mind, you may also have to relocate to get the degree you want.

Studying online allows you to continue gaining valuable work experience in the health care sector while bringing home a paycheck. You can earn a degree from a top university without having to move, all while learning from the same professors as your in-person peers. 

Explore online degree options from Coursera.

Health care administration curriculum

While specific coursework will vary by program and university, you might take classes in topics like:

• Health systems

• Financial management

• Health care planning

• Health law and policy

• Compliance and risk management

• Digital transformation

• Ethics

• Global health

• Leadership

Some programs in health administration give you the opportunity to specialize in a specific field of study. Depending on your interests, you might choose to specialize in health care informatics, management, law and policy, digital tools, or patient advocacy, among others.

Is a degree in health care administration worth It?

Earning your health care administration degree expands your career options in the quickly-growing health care field. It also involves a significant commitment of both time and money. Think about your career goals and lifestyle to decide which degree path is right for you. 

If you’re already working in the field, check to see if your employer offers education reimbursement benefits. Some hospitals and practices will cover a portion of your tuition as you continue to work. This eases the financial burden while empowering you to immediately apply what you’re learning in a real health care setting.

Alternatives to a health care administration degree

If you’re interested in the health care industry, you’re not limited to health care administration. Here are some other fields to consider as you consider earning a degree:

• Public health: This is a good option if you’re interested in informing policy or working with communities. 

• Health sciences: Pursue a degree in health sciences if you’d like to work in a clinical or laboratory setting.

• Health informatics: If you have an analytical mind and an interest in data science, this field might be for you.

• Nursing: Earning a degree in nursing prepares you for a hands-on career in direct patient care.

• Master of Business Administration (MBA): If you already have work experience in health care, earning your MBA in health care administration can help you progress into management positions.

Licensing and certification for health care administrators

Licensing and certification are not widely required in health care administration with one key exception. If you’d like to make a positive impact on the aging population by working in a nursing home, you’ll need to get licensed at the state level. This typically involves completing a state-approved training program and passing a national exam. Some states also require licensure for administrators at assisted living facilities. 

Get started

Whether you’re just graduating or are ready for a career change, choosing health care administration puts you on a rewarding and in-demand career path.

Build a foundation for success by enrolling in the Master of Science in Management: Digital Transformation in Healthcare from Northeastern University in partnership with Mayo Clinic.

If you’re looking to advance your career, learn more about how earning a health care degree online can fit into your life.

Frequently asked questions (FAQ)