In this Article
Written and reported by:
Kendall Upton
Staff writer
Most of what we see when we visit a hospital, doctor’s office or other healthcare facility are the nurses and physicians working tirelessly to get people healthy, but there’s so much more that goes on behind the scenes. Medical records need to be organized, software systems maintained, appointments scheduled, government regulations followed, budgets managed, paychecks distributed and protocols enforced. These responsibilities and so many more fall to healthcare administrators and healthcare managers.
At its core, healthcare administration is chiefly concerned with the daily administrative operations of a healthcare facility. Healthcare management, on the other hand, is about overseeing these operations and the long-term strategic goals of the organization.
Key differences between the two
Healthcare administration and healthcare management may seem like different ways of saying the same thing. Indeed, professionals in these two healthcare fields both perform the non-clinical functions of a healthcare facility or organization. However, there are a few key differences between these closely related fields.
At its core, healthcare administration is chiefly concerned with the daily administrative operations of a healthcare facility. Healthcare management, on the other hand, is about overseeing these operations and the long-term strategic goals of the organization. But given the fact that each healthcare organization can be structured in its own way, it’s entirely possible that an individual could have a job that gives them a foothold in both territories. This may be even more common within smaller organizations where it’s more likely that employees have responsibilities that overlap.
If you’re passionate about healthcare but don’t picture yourself on the front lines of patient care, working in healthcare administration or management could be a great alternative. Learning the differences between these two fields—and where they overlap—can help you map out your educational journey and figure out what you need to land your dream job.
What is healthcare administration?
Healthcare administration denotes the day-to-day functions that keep a healthcare organization running smoothly. As you can imagine, this can mean many different things. A healthcare administrator’s job could be focused on financial operations like billing and payroll, personnel matters within human resources, customer service, communication with insurance carriers or something else entirely.
What do healthcare administrators do?
A healthcare administrator’s job duties can vary quite a lot depending on their job title, since the field encompasses many different roles. One hospital administrator could be in a customer facing role where they’re answering phones, booking appointments and handling issues regarding insurance and payment. Another could be behind closed doors working as a program coordinator for a specific department or project.
Still, here are some job duties health administrators may be expected to perform:
Qualifications for healthcare administrators
Most healthcare administration roles require a bachelor’s degree, though it’s possible that some entry-level roles may only need an associate degree to get started. Majoring in healthcare administration or healthcare management is an obvious choice for people who are certain they want to enter the field, but it’s not the only option. Some other majors that could benefit a hopeful healthcare administrator include:
What is healthcare management?
Whereas healthcare administrators are mostly concerned with more of the everyday tasks of a healthcare organization, healthcare managers tend to tackle more of the “big picture” responsibilities. This often means developing new and improved policies, procedures, initiatives and goals for the organization at large. At the end of the day, their mission is to improve patient outcomes and make sure their employees are satisfied.
What do healthcare managers do?
Depending on their specific role, a healthcare manager could be a middle management professional or someone closer to the apex of the career ladder like a C-suite executive. This can of course have a massive influence on their individual responsibilities, but to get an idea of what healthcare managers do, here are some common job duties:
Qualifications for healthcare managers
Although the specific qualifications for any individual job can vary, most healthcare managers should expect to need a bachelor’s degree at minimum. A bachelor’s degree in healthcare administration or healthcare management is ideal but not the only option, especially if someone comes from a clinical background.
On top of a baccalaureate education, a master’s degree can be highly desirable—or outright required, depending on the job—for a healthcare management role. Some master’s degrees that can be a great fit for healthcare managers include:
Some healthcare managers that want to advance even further in their careers may want to consider earning a doctoral degree in healthcare administration or public health. A doctoral degree may be the education needed to land a role that allows you to implement widespread systemic change. They are also necessary for those that want to teach at the postsecondary level and/or conduct research within the field.
Similarities between healthcare administrators and managers
With an understanding of the general scope of both fields, it should come as no surprise that healthcare administrators and managers often find themselves working together. At the very least, both categories of professionals can find work in many of the same settings, such as:
It’s also worth noting that many people working in the administration and healthcare management fields come from clinical backgrounds. While it’s not usually a requirement, having firsthand experience caring for patients can give you an invaluable perspective on how your work affects the organization at large and trickles down to patient outcomes. Take a look at the leadership team of any major healthcare provider and you’re bound to see a lot of people that used to be practicing doctors or nurses themselves (or still are).
If you have clinical experience, pivoting to a healthcare management or administration role could be a viable option for you. Depending on the type of role you want and the level of education you already have, you may or may not need another degree. A nurse with a bachelor’s degree in nursing, for example, may benefit from getting an MHA degree if they wish to transition their career to administrative work. An Advanced Practice Registered Nurse (APRN) who already has a master’s degree, however, may not need any more education given the managerial nature of their clinical role.
Salary and job outlook comparison
Since healthcare management roles generally require more experience than administrative ones, it’s unsurprising that these professionals have a higher median annual salary according to the 2023 Occupational Employment and Wage Statistics from the U.S. Bureau of Labor Statistics (BLS). The BLS states that the median annual salary for medical and health services managers is $110,680 with the top 10% of the profession earning over $200,000 per year. Even the bottom 10% of this profession earn more than the median annual salary across all occupations ($67,900).
The BLS also states that the median annual salary for medical secretaries and administrative assistants is $40,640, significantly less than their managerial counterparts. Bear in mind, however, that these job categories are not always precisely defined. Someone who is considered a healthcare administrator, for example, may actually have a job that is closer to what the BLS deems a health services manager than a medical secretary. For all professions, individual salaries can vary depending on the particular job, your location, years of experience, education level and more.
The employment of medical and health services managers is expected to grow 28.4% through 2032, much faster than the average across all occupations. Medical secretaries and administrative assistants have a projected job growth of 6.7% through 2032—not as fast as managers but still faster than the average across all occupations.
Wrapping it up
Healthcare administration and healthcare management are two closely intertwined fields that both contribute to the overall success of a healthcare organization. The differences in their job scope—with administration focusing more on daily operations and managers on organization-wide goals—mean that your career could take a very distinct shape depending on the field you choose.
That said, many people have experience with both, especially if they start out in an administrative role and move up to a managerial position later on. No matter where you want your career to take you, a degree in healthcare administration could prepare you for either route.
