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Health Administration/Management Overview


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Health care is a business and, like every other business, it needs good management to keep it running smoothly. Today, an estimated 300,000 people serve in health administration, from middle management to CEO positions at organizations that range in size from one or two staff members to major international companies employing hundreds of thousands of employees.

They are the business side of health care and their responsibilities include developing policy, coordinating and directing planning, maintaining an efficient and effective organizational structure, managing the organization’s assets, and analyzing the organization’s profitability and efficiency. A health care management career requires leadership skills, specialized knowledge of the health care industry, financial management, human resources, health care technology and informatics.

As the large baby-boom population ages and people remain active later in life, the health care industry as a whole is likely to see increased need for medical services. That means there will be more need for managers to supervise and coordinate health care services. In fact, according to the Bureau of Labor Statistics (BLS), employment in the field of health care management is projected to grow 17% from 2014 to 2024, much faster than the average for all occupations.

In addition to facilities like hospitals and nursing homes, the BLS projects that there will be more need for health care managers in health care practitioners’ offices as well. As some services previously provided in hospitals shift to those practitioners, medical group practices are also likely to become larger, creating a need for managers to oversee the business side of the practices.

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Note: The Association of University Programs in Health Administration reviewed this overview.

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