How to Become a Healthcare Administrator - Career Path, Salary and Job Description

What is a Healthcare Administrator?

A healthcare administrator is a professional with a complex blending of professional skills. They may have begun working in a healthcare field, then decided to advance by earning their degree and moving into the administration side of healthcare. These professionals are also called healthcare managers or healthcare executives. They may have earned an MBA, which allows them to work in the highest positions in a healthcare facility. They may become closely involved with community meetings that concern healthcare. These professionals can work in hospitals, nursing homes, insurance companies, or at behavioral health facilities.

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Steps to Becoming a Healthcare Administrator

Becoming a healthcare administrator is a rewarding path that combines leadership, management, and healthcare expertise. As the demand for skilled professionals in healthcare management continues to grow, this career offers opportunities to play a vital role in improving patient care and ensuring healthcare facilities operate efficiently. Whether you’re just starting your educational journey or looking to advance your career, understanding the key steps to becoming a healthcare administrator is essential for success in this field.

You can choose to earn a BSBA or MBA in healthcare administration, with a variety of offerings from colleges and universities throughout the US. Once you have narrowed down your choices, you'll need to get your paperwork in order, submit official transcripts from your previous school, and send in your ACT/SAT or GRE scores, depending on the degree you choose to earn and the school's requirements.

Step 1: Earn Your Degree
Step 2: Get Experience
Step 3: Internship
Step 4: Earn Certification/License

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Step 1: Earn Your Degree

You can earn a bachelor’s or master’s degree in healthcare administration, depending on your previous educational experience. A bachelor’s offers a healthcare-based program that helps you to develop your skills so that, when you are offered a job, you’ll feel comfortable in your day-to-day role.

A bachelor's health administration program will require that you complete your general education classes, and both and undergraduate and graduate program will require that you complete core classes that are related to administration, healthcare informatics, and other pertinent topics. Your health administration curriculum should be designed for versatility so that you can gain the ability to adapt yourself daily to your required work responsibilities. You may also take leadership courses and courses that will help you develop an analytical mind for health administration.

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Step 2: Get Experience

Gaining hands-on experience is a critical step in becoming a healthcare administrator. Many entry-level positions in healthcare settings, such as medical office manager, healthcare coordinator, or administrative assistant, can provide valuable exposure to the operations of a healthcare facility. These roles allow you to develop essential skills in management, patient care coordination, and understanding the day-to-day challenges of healthcare environments. Internships or volunteer opportunities are also great ways to build experience while you complete your education, providing a strong foundation for advancing into administrative positions.

If you can apply for a position working in a doctor’s office, behavioral health facility, or a nursing facility, you will be able to add to your experiences. You may also find roles in the billing department of a hospital or doctor’s office. Or you may work in the office manager’s office, assisting the manager with their work.

You can also choose to complete a health admin internship. Gaining work experience is crucial for your first postgraduate job. For example, you might work in a hospital's billing department or take a health administration internship with a pharmaceutical company. Both offer valuable administrative exposure in healthcare. Pursue multiple internships to gain more experience, as many are competitive.

Step 3: Earn Certification

After gaining experience in healthcare administration, obtaining certification can enhance your qualifications and make you more competitive in the job market. Certifications demonstrate your commitment to the field and proficiency in healthcare management. One of the most common certifications is the Certified Healthcare Administrator (CHA), which is offered by professional organizations such as the American College of Healthcare Executives (ACHE). Other certifications include the Fellow of the American College of Healthcare Executives (FACHE), which is awarded to those with significant leadership experience, and the Certified Medical Manager (CMM), which is ideal for those working in medical group practices. Earning certification typically involves meeting specific education and experience requirements, passing an exam, and maintaining ongoing professional development.

Step 4: Consider Earning a Master's

While a bachelor's degree can open doors to entry-level positions in healthcare administration, earning a master's degree can significantly boost your career prospects and prepare you for more advanced roles. A Master's in Healthcare Administration (MHA) or a related field, such as a Master of Public Health (MPH), provides specialized knowledge and leadership skills essential for higher-level management positions. These programs often cover topics like healthcare policy, finance, operations, and strategic management, offering a deeper understanding of the healthcare system. A master's degree is particularly beneficial for those aiming for roles like hospital administrator or healthcare executive. Additionally, many MHA programs offer networking opportunities, internships, and connections to industry leaders, which can be valuable for career advancement.

What Do These Managers Do?

A healthcare administrator manages the operations and daily activities of healthcare facilities such as hospitals, clinics, nursing homes, and outpatient care centers. Their responsibilities ensure that the facility runs smoothly, efficiently, and in compliance with regulations. They oversee staff management, budgeting, resource allocation, and the implementation of policies and procedures. Healthcare administrators work closely with medical professionals to ensure that patients receive high-quality care while maintaining operational efficiency.

Key duties include managing finances, developing and monitoring budgets, ensuring compliance with healthcare laws and regulations, and improving the facility’s performance. They also handle strategic planning, develop patient care programs, and address issues like staffing, healthcare delivery, and patient satisfaction. Healthcare administrators may also be responsible for ensuring proper facility maintenance, managing electronic health records systems, and addressing any operational challenges that may arise. Overall, their role is vital in bridging the gap between healthcare providers and the business aspects of the facility, ensuring a well-managed environment for both staff and patients.

Skills to Acquire

To succeed as a healthcare administrator, a diverse set of skills is essential. These skills not only help in managing the daily operations of a healthcare facility but also contribute to effective leadership and decision-making. Here are some key skills to acquire:

Leadership and Management: Healthcare administrators must lead teams, manage staff, and ensure that everyone works toward common goals. Strong leadership skills help in motivating staff, resolving conflicts, and promoting a positive work environment.
Communication Skills: Clear communication is essential in healthcare administration. Whether it's interacting with staff, patients, or stakeholders, administrators need to convey information effectively and listen to others’ concerns.
Problem-Solving and Critical Thinking: Healthcare administrators are often faced with complex situations and must make critical decisions to address operational challenges, patient care issues, or resource allocation. Strong problem-solving abilities and critical thinking help in navigating these issues efficiently.
Financial Management: Administrators need to understand budgeting, financial planning, and resource allocation. Managing the financial health of a healthcare facility while ensuring high-quality care is a crucial part of the job.
Knowledge of Healthcare Regulations: Staying up to date with healthcare laws, policies, and ethical guidelines is essential. Administrators must ensure that the facility complies with federal and state regulations, including patient privacy laws and healthcare standards.
Time Management: With many responsibilities to juggle, healthcare administrators need excellent time management skills. Prioritizing tasks and managing multiple projects efficiently is key to ensuring smooth facility operations.
Technology Proficiency: Familiarity with healthcare information systems, electronic health records (EHR), and other technology tools used in the healthcare industry is increasingly important. Administrators should be tech-savvy to enhance patient care and operational efficiency.

Acquiring and honing these skills can greatly enhance a healthcare administrator's ability to thrive in a dynamic and fast-paced environment. These competencies are essential to ensuring smooth operations, optimal patient care, and overall success within the healthcare system.

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Alternative Paths

While there is no acceptable substitute for a strong education in healthcare administration, you can begin with an entry-level position. By starting as a medical office administrator in a medical practice, you will get a behind-the-scenes opportunity to learn about healthcare administration as a profession. In an entry-level position, you may take care of accounts receivable, answer phones, get in touch with insurance companies, deal with contracts, and hire and manage staff members.

In a human resources office, you could find yourself close to the heart of a medical practice. As a medical executive assistant, you might work directly with the C-suite executives. And don’t forget about on-the-job training via internships. These opportunities give you the chance to work in several areas of healthcare, learning the administrative functions.

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Where Might You Work?

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Upon your graduation and once you obtain your license to work in health administration, you will be able to work in a variety of healthcare sectors and facilities. Here are just some options:

Hospitals: Large hospitals often employ healthcare administrators to oversee various departments such as nursing, medical services, patient care, and administrative functions. Administrators in hospitals may manage operations, staffing, budgeting, and regulatory compliance.

Clinics and Physician Offices: Smaller healthcare settings, such as outpatient clinics or individual physician offices, also require administrators to manage daily operations, scheduling, billing, and patient services. These positions may involve more hands-on management in smaller teams.

Nursing Homes and Assisted Living Facilities: Long-term care facilities require administrators to ensure the smooth operation of services for elderly or disabled patients. Responsibilities include staff management, patient care quality, regulatory compliance, and ensuring patient safety.

Public Health Organizations: Healthcare administrators can also work in public health departments or nonprofit organizations, managing public health initiatives, healthcare programs, and community outreach efforts. These positions may focus on preventive care, education, and policy development.

Pharmaceutical Companies: Administrators in pharmaceutical or biotech companies may oversee clinical trials, regulatory affairs, product development, or healthcare partnerships, working in an industry that directly impacts the healthcare sector.

Health Insurance Companies: Health insurance providers hire healthcare administrators to manage claims, policyholder services, network relationships, and compliance with healthcare laws and regulations.

Government Agencies: Healthcare administrators can work for government agencies such as the Centers for Medicare & Medicaid Services (CMS), Veterans Affairs (VA), or local health departments, managing healthcare policy implementation and public health initiatives.

Consulting Firms: Some healthcare administrators work as consultants for healthcare systems, offering expertise on operational efficiency, regulatory compliance, strategic planning, and healthcare management best practices.

Academic Institutions: Universities and schools that offer healthcare management programs may hire experienced administrators to teach, conduct research, or lead administrative departments within the institution’s healthcare programs.

Healthcare administrators have the flexibility to work in various settings, allowing them to choose a career path that aligns with their interests and expertise. Whether in a hospital, private practice, public health, or corporate setting, healthcare administration offers diverse opportunities to make a significant impact on the healthcare system.

Potential Roles

Health administration career options are wide open. You may work as a health information manager, CEO of a healthcare system, or as the director of healthcare quality for an entire hospital administration.

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You should have at least a bachelor’s degree and some experience in leadership to work in this field. If you have a master’s degree, you may be able to work in higher levels of healthcare administration. Your knowledge, expertise, and work ethic all help you to keep your healthcare organization running efficiently. If you work outside a true healthcare setting, you’ll still likely work in a field affiliated with healthcare.

Healthcare Administration/Business Leadership:
Receive advanced training via the Leadership Academy. Here, you will refine your skills and sharpen your knowledge so that, when you accept a healthcare administration position, you will be able to perform at your highest potential.

The first stage is a six-week program focusing on contemporary leadership and management skills. In stage two, you will be placed in a residency placement in specially selected centers within the organization.

You should have a master’s in Business Administration (preferred, but not mandatory). If you successfully complete this academy, you may be required to relocate based on company needs.

Project Analyst:
This position focuses on facilities and construction. You will be responsible for spearheading integrated or cross-departmental global projects, or you may manage ongoing maintenance of a group of several related activities. You will have to provide input into the policies associated with the job’s purpose and essential responsibilities: Collaborating with director, manager, physician leadership, and some internal/external stakeholders. Maintain active working knowledge of in-country demands, needs, and environment so you can place and manage physicians, programs, and staff assignments efficiently. Establish a recruitment timeline, ascertain funding streams, determine needs, create project plans, and carry out work team meetings.

Manager of Practice Operations—Department Specific:
Hold a bachelor’s degree in Business Administration or a related field. You are required to have a bachelor’s in healthcare administration or six years’ directly related healthcare administration experience. You will be responsible for assisting the area director in developing and implementing procedures and processes that are related to functions and operations issues. Duties include work plan development, facilitating process improvement, and communication to various sites. You are a resource to backfill open positions for key roles connected to operations.

Inventory Analyst:
Your work extends across all of an organization’s healthcare entities so that inventory standards and process flows are aligned with the organization. You are the supply chain facilitator and liaison between ITS applications, clinical and inventory users, and CareConnect so you can troubleshoot and design solutions related to a particular inventory module. You will also act as the inventory module lead for all inventory module project work. This will be for entities that are new to the inventory module.

Research Associate:
You will be working within a research service for a specific office within this organization. Your assignment could be in the Clinical Epidemiology program (CEP), which is a dedicated research group that includes epidemiologists, analysts, and statisticians, or in another specialty. You and your group will cultivate collaborative projects intended to advance patient-centered research that is derived from Veterans Health Administration (VHA) data. Your section’s primary research interests could be in vaccine and drug safety, and efficacy, focusing on healthcare disparities and resource allocation.

Manager Practice Operations—Emergency Department:
A bachelor’s degree in healthcare administration is essential. If you have six years of directly related work experience, this may suffice.

You will assist with the development of procedures and standardization of referral and authorization process and assist area director with operational and standardization efforts as needed. You’ll also serve as liaison between site staff and organization’s administrative departments and maintain general knowledge of area operations and specific functions related to process improvement efforts.

You might conduct site visits to confirm processes are in place and followed consistently based on procedures, serve as a liaison to physician and clinic staff as related to clinics operations when assigned, and work with the Human Resources Department in managing personnel issues (hiring, orientation, staffing, monitoring, and making recommendations for disciplinary actions).

Job Outlook

Healthcare management is a vital service for people’s wellbeing. Therefore, it’s no surprise to see that the employment of medical and public health services managers is projected to grow 20% between 2016 and 2026. This is much faster than the average for all other occupations in the United States.

As the general population maintains an active lifestyle into their later years and the Baby Boomer population ages, the demand for effective healthcare management services will only increase. There will be an ever-expanding demand for doctors and other healthcare workers, which means a growing need for managers who are responsible for managing medical information, healthcare management staff, and organizing all of these entities. Employment growth should be the highest in healthcare practitioners’ offices.

Advancing From Here

If you begin your healthcare administration career working as an administrator of a nursing home or a private practice, then the next natural step for you would be to administer within a hospital.

If you enjoy the idea of international healthcare practice, consider joining up with the American Red Cross, the Peace Corps, or Doctors without Borders. Here, you will stretch your knowledge of healthcare administration, working with an international group.

Finally, you could move into clinical research as a manager. This complex specialization means you’ll coordinate study participants, researchers, doctors, and pharmaceutical executives.

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Frequently Asked Questions

What can I do with this degree?

Some common healthcare administration careers include: hospital administrators, health care organizations, healthcare professionals, healthcare consultants, and medical professionals. You could also look into leadership positions such as health services managers, community service managers, or hospital managers.

What skills do these specialists need?

Leadership skills, communication skills, and teamwork skills are all important in healthcare administration careers. Business administration skills, budgeting, organization, quality assurance and an understanding of patient care are all important skills for healthcare administration.

How much do they make?

According to the Bureau of Labor Statistics, you can make around $104,000 per year in healthcare administration.

Where do they work?

Healthcare administration jobs can be in nursing homes, hospitals, clinics, nursing homes, community health centers, pharmaceutical companies, assisted living facilities, or educational settings such as teaching hospitals.

What is the The American Hospital Association?

The American Hospital Association is national organization that serves all types of healthcare companies. The American Hospital Association helps regulate rules around hospital administration.

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