What Is a Health Care Administrator?

Health care administration focuses on the management aspects of the health care field. Health care administrators, also known as medical and health services managers, work in various settings, including hospitals and nursing facilities. Unlike doctors or nurses, health care administrators don't provide direct patient care, but they significantly impact the patient experience.

We spoke with William Cundiff, JD, faculty member in the Purdue Global School of Health Sciences, to learn more about health care administration, what it entails, and why it’s important.

Defining Health Care Administration

Cundiff defines health care administration, or health administration, as “a leadership function that gives health care organizations an opportunity to provide high-quality medical services during patient care experiences.”

He says that just as people can choose where to spend their money, they can also choose where to access health care. “The focus [of health care administration] is not only on quality of care but also making people feel comfortable where they’re receiving their health care experience,” Cundiff explains. “It’s providing a compassionate and empathetic environment for individuals when they come to seek care.”

In addition to addressing patient care quality, health care administration also encompasses a range of operational and administrative responsibilities, including staffing, budgeting, regulatory compliance, strategic planning, and more. These services are essential to the effective functioning of health care organizations.

Why Is Health Care Administration Important?

“There are so many challenges facing the health care industry,” says Cundiff. “Individuals who have the appropriate level of knowledge, skill sets, and abilities in health care administration can really help improve the overall patient care experience, and they can do so in areas that are both operationally and fiscally efficient.”

According to Cundiff, health care organizations have a fiduciary responsibility to ensure funds are used appropriately. He says this is especially true for facilities that care for Medicare or Medicaid patients, which are funded with taxpayer dollars.

However, Cundiff says, they also have a responsibility to provide quality health services. Health care administrators cover many different areas that impact patient outcomes, and it’s up to them to avoid delays and ensure continuous delivery. According to Cundiff, this is particularly important given the country’s aging population and increase in chronic conditions.

According to the Bureau of Labor Statistics (BLS), there is a projected 29% increase in jobs for medical and health services managers nationwide between 2023 and 2033. In 2023, there were more than 560,000 medical and health services managers employed in the U.S. Many of the job openings are due to workers changing positions or retiring. The increased demand for health services due to an aging population has also impacted the demand for health care administration professionals.

What Are the Responsibilities of Health Care Administrators?

The exact job responsibilities of a medical and health services manager can vary by organization. Administrators for a large facility may focus more on broad oversight, whereas those managing small departments may handle more day-to-day operational tasks.

In general, health care administrators plan, coordinate, and supervise the functions of health care facilities and their staff. They also:

• Give advice on legal or regulatory compliance.
• Analyze risks to minimize losses or damages.
• Supervise employees.
• Direct financial operations.
• Implement organizational processes or policy changes.
• Prepare operational budgets.

Graduates with a degree in health care administration can also explore the option of starting their own businesses. For example, someone working in a home health care company may recognize the opportunity to become licensed and establish an independent operation. With initiative, they can go on to build their own business and hire staff to provide care services in clients’ homes.

Where Do Health Care Administrators Work?

Medical and health services managers work closely with members of health care teams, such as doctors, nurses, clinical laboratory technicians, and other health care workers. Some may also interact with patients or insurance agents.

As of 2023, there were over 562,000 medical and health services managers in the U.S. Of these, the most common work settings include:

• Hospitals (state, local, or private)
• Physicians’ offices
• Nursing and residential care facilities
• Government facilities
• Outpatient care centers

Health Care Administration Skills and Education

According to the BLS, a bachelor's degree is typically the minimum education requirement for an entry-level health care administrator position. However, the education and work experience needed can vary based on the job setting and duties. Some employers may prefer candidates with a master’s degree.

At Purdue Global, a master's degree in health care administration can help prepare you for a career as a health care administrator.

In addition to education, health care administrators need a combination of soft and hard skills to be effective. As for soft skills, Cundiff says effective communication is one of the most important. “I think communication is always a key part of our skill set, whether it’s information going downstream to the employees and team members or communication that goes upstream to your immediate supervisor or the executives,” he explains.

Helpful hard skills may include:

• Legal knowledge: Although most health care organizations have legal departments, Cundiff says it’s helpful if administrators understand the basics of regulatory affairs. Specifically, they must be prepared to understand how new policies or regulations impact payment schedules and the patient’s ability to pay their bills, especially given the rapid changes in payment models.
• Clinical knowledge: Cundiff notes that clinical knowledge isn’t required, but it can be useful. “We’re seeing more and more clinical staffers moving into administrative roles,” he says. “There are great opportunities for individuals who are clinical leaders and nurses who have a background in patient-facing roles. Many are looking to either improve their skill sets or get off the treatment floor and move into corner offices. They’re able to bring patient-facing experience to the operational and business side of things.”

Are You Interested in Earning a Degree in Health Care Administration?

A degree in health care administration can be an excellent way to further a career in this growing field. Purdue Global offers an online master's in health care administration degree designed for busy working adults. Request more information today.