How to Become a Healthcare Administrator

Growth in many segments of the U.S. healthcare industry shows no sign of slowing down. For example, consulting firm McKinsey & Co. projects growth in the following sectors:

• Outpatient care 
• Pharmaceutical services
• Healthcare software

With anticipated growth in the field, now is a great time to consider working in healthcare administration. Anyone who has been considering pursuing an advanced degree, such as a Master of Business Administration (MBA) with a concentration in Healthcare Administration, can benefit from learning how to become a healthcare administrator and what working in the role entails.

What Does a Healthcare Administrator Do?

Healthcare administrators are charged with overseeing all or part of the business-related functions of a healthcare organization. While they do not have clinical responsibilities, healthcare administrators are critical to the effective and efficient operations of organizations that offer healthcare services.

High-Level Responsibilities of Healthcare Administrators

A healthcare administrator has an overall responsibility for many operational aspects of a healthcare organization, including the following:

• Creating organizational policies and procedures to maximize health outcomes and comply with legal requirements
• Ensuring sound management of an organization’s fiscal operations
• Overseeing an organization’s human resources (HR) department, including staff training and recruitment
• Implementing initiatives to strengthen organizational efficiency and quality of care
• Ensuring patient confidentiality and privacy
• Fostering communication across organizational departments
• Communicating with the public regarding an organization’s operations

Typical Daily Activities of Healthcare Administrators

The typical tasks of healthcare administrators can include the following:

• Monitoring budgets
• Developing work schedules
• Attending and contributing to departmental meetings
• Reporting on the status of various business functions to other executives 
• Negotiating contracts
• Meeting with stakeholders, such as community groups

Where Healthcare Administrators Can Work

By entering the healthcare administration field, individuals can work in several types of organizations, including the following:

• Hospitals
• Nursing homes
• Clinics
• Physicians’ offices
• Outpatient care facilities
• Government agencies

Steps to Become a Healthcare Administrator

Knowing how to become a healthcare administrator can help those who want to enter the field understand the requirements of the role. The steps below outline the general process for entering a career as a healthcare administrator.

1. Earn a Bachelor’s Degree

Completion of a bachelor’s degree in a discipline such as Business Administration, Health Administration, or Public Health is a great way to develop foundational expertise that can be valuable when working as a healthcare administrator. These types of degree programs offer students the opportunity to develop knowledge and skills in areas such as finance, management, and information systems that can serve them well in working in administrative roles in healthcare.

Another example of an undergraduate degree that can be valuable in healthcare administration is nursing. Nursing expertise can be particularly helpful in healthcare administration because it allows individuals to bring a clinical perspective to the business operations of healthcare organizations.

2. Gain Relevant Work Experience

Healthcare administrators benefit from gaining work experience in key areas, such as clinic administration, healthcare organization admissions, or medical insurance. This experience can be highly beneficial as individuals climb the health administration career ladder and move into administrator roles that involve increasing levels of responsibility.

3. Complete a Graduate Degree

Pursuing graduate education, such as an MBA degree program, can help aspiring healthcare administrators develop more in-depth expertise. MBA degrees are worthwhile because they allow individuals to both enhance their knowledge and demonstrate their commitment to enhancing their expertise. 

Careers with an MBA, particularly an MBA with a concentration in Healthcare Administration, can encompass a range of leadership roles in healthcare administration. In addition, individuals who complete an MBA with a concentration in Healthcare Administration have the opportunity to participate in case studies and hands-on assignments that give them valuable experience in making decisions and devising solutions to real-world problems. Students in these degree programs also gain critical skills in areas such as policy development, financial analysis for healthcare systems, and use of data analysis to improve healthcare processes. 

In short, investing the time to earn an MBA can position individuals to excel in leadership roles in healthcare administration.

4. Consider Pursuing Certifications

Pursuing certifications can also be beneficial in entering a healthcare administration career and ascending the career ladder. For example, an individual can earn the following certifications:

• Certified Health Care Facility Manager (American Hospital Association): The CHFM certification demonstrates competence in areas such as planning, maintenance and operations, finance, and administration.
• Certified Healthcare Financial Professional (Healthcare Financial Management Association): The CHFP certification demonstrates competence in areas such as development of financial strategies and trends that can affect financial management in healthcare.
• Fellow of the American College of Healthcare Executives: The FACHE certification, which individuals must have a graduate degree to obtain, demonstrates competence in healthcare administration management and leadership.

Healthcare Administrator Salary and Job Growth

Anyone who is considering becoming a healthcare administrator will be interested to know that both salary levels and prospects for job growth in the field are attractive. 

According to the U.S. Bureau of Labor Statistics (BLS), medical and health services managers earned a median annual salary of $110,680 as of May 2023. In addition, those in the top 10 percentile of the salary range earned more than $216,750. Notably, salaries can vary based on factors such as geographic location, employer, experience, and education.

The BLS projects that medical and health services managers will experience 29% job growth between 2023 and 2033, compared with 4% for all occupations. The BLS attributes the strong forecast for job growth to the aging population, increased need for healthcare services, and increased use of information technology (IT) and informatics in the healthcare industry.

Learn More About How to Become a Healthcare Administrator 

Launching a healthcare administration career is a great choice for people who want to apply their knowledge and skills to improve how healthcare organizations operate. With expertise in an array of business functions, healthcare administrators have the chance to perform fulfilling work that makes a difference in our healthcare system.

Those who have an interest in graduate education to prepare for leadership roles in healthcare administration can explore the MBA program with a concentration in Healthcare Administration at Notre Dame de Namur University to learn how it can help them achieve their career goals. With an emphasis on the actual issues that healthcare organizations face, as well as the skills that individuals need to address those issues, the program establishes a solid foundation for leadership in healthcare administration. Start progressing on the healthcare administration career path today.