Healthcare management and healthcare administration are two career paths that are often confused. At first glance, they sound the same, but there are important differences between the two. Both play a critical role in keeping healthcare facilities running, but the focus of each job is unique.
If you’re considering a career in healthcare leadership, understanding these distinctions can help you choose the path that fits your skills and career goals.
What Is Healthcare Management?
Healthcare management focuses on the big picture of running a healthcare facility or system. Managers are responsible for planning, directing, and coordinating the overall operations of hospitals, clinics, or healthcare networks.
Common responsibilities include:
- Overseeing budgets and financial planning
- Developing policies and strategies
- Managing departments and resources
- Ensuring compliance with regulations
- Leading long-term growth and facility operations
In short, healthcare managers guide the direction of an organization to make sure it runs efficiently and remains financially strong.
What Is Healthcare Administration?
Healthcare administration is more focused on day-to-day operations and staffing. Administrators work closely with medical staff and departments to ensure patient services run smoothly.
Common responsibilities include:
- Scheduling staff and managing teams
- Handling billing and reimbursement processes
- Managing records and patient information systems
- Coordinating with physicians and department leaders
- Ensuring quality patient care at the department level
Administrators are typically more involved in the hands-on supervision of staff and patient services.
Key Differences Between Healthcare Management and Administration
- Scope of Work:
- Management looks at the organization as a whole.
- Administration focuses on specific departments and staff.
- Primary Focus:
- Management handles strategy, policy, and budgets.
- Administration manages people, processes, and patients.
- Education Path:
- Healthcare managers often pursue degrees in healthcare management or business administration.
- Healthcare administrators typically earn degrees in health services administration or healthcare administration.
- Skills Needed:
- Management: Leadership, financial planning, policy, and organizational strategy.
- Administration: Human resources, communication, operations, and patient services.
Salary and Job Outlook
Both healthcare managers and administrators fall under the U.S. Bureau of Labor Statistics category of Medical and Health Services Managers.
- Median Salary (2022): $104,830 per year
- Job Growth: Projected 28% growth through 2032, much faster than average
As healthcare needs expand, opportunities in both fields continue to grow across hospitals, nursing facilities, outpatient centers, and private practices.
Which Career Path Is Right for You?
- Choose Healthcare Management if you enjoy strategy, finance, and leading organizations.
- Choose Healthcare Administration if you prefer working with staff, coordinating departments, and improving patient services.
Both paths offer rewarding careers in healthcare leadership.
FNU Healthcare Programs
Associates Degrees
This program is designed for students planning to pursue a higher-level degree in health services administration, as well as to equip students with skills needed in entry-level supervisory positions in the health services field.
This program is designed for students planning to pursue a higher-level degree in Hospitality Management. It offers key introductory courses within the field of Hospitality Management.
Bachelor’s Degree
The Bachelor of Science in Health Services Administration program provides students with a broad view of today’s Health Care System. The program provides the professional skills needed for administrative positions throughout the healthcare industry.
Soft Skills
Considering that both positions are mostly found at the executive level, health care managers and administrators need to have leadership skills and understand good management practices. Since an administrator’s role is more concerned with utilizing the talents of his or her staff, he or she would do best by implementing staff management procedures. At the same time, a health care manager needs to possess adequate leadership skills to influence the direction of a facility’s or network’s policies and procedures.
Aside from the differences stated above, both health care managers and administrators must possess the following soft skills to be effective in his or her careers:
- Analytical skills
- Communication skills
- Detail oriented
- Interpersonal skills
- Problem-solving skills
- Technical skills
Employment Growth
Due to a rapidly aging population, the demand for healthcare only continues to increase, making the projected job outlook for both occupations positive. With this proliferation, the shift will primarily occur in the offices of health practitioners, as many services and procedures will move away from hospitals because of the complexity and breadth of medical technology available. According to the Bureau of Labor Statistics, “employment of medical and health services managers is projected to grow 23 percent from 2012 to 2022, much faster than the average for all occupations.”
Pay & Job Environment
As jobs in the health care sector tend to have a promising return on one’s educational investment, the pay for health care managers and administrators does not deviate from the norm. Although earnings depend on the type and size of a facility, as well as the degree of one’s responsibility, the Bureau of Labor Statistics reports, “The median annual wage for medical and health services managers was $99,730 in May 2018.”
Undoubtedly, working in the health care sector requires a commitment to full-time employment. For this reason, health care managers and administrators must be prepared to work on a whim as they are sometimes needed for emergencies or must work during the evening, weekends, or overnight. Generally, both health care managers and administrators are employed by hospitals at the local, state, and private level, as well as by ambulatory health care services, nursing and residential health care facilities, and by the government.
In sum, both professionals are not different in the sense that they have to be integrated with the medical team. Furthermore, they are part of any medical team, and that is why they both need to understand the medical language, medical work, and the different psychological environments of patients and health care workers.
Florida National University Wants The Best For Your Future Career
The entire concept of separating healthcare administrators from healthcare managers can be confusing. In many smaller healthcare organizations, the two roles are merged to help save on costs. However, when entering the healthcare industry, it’s essential to have a comprehensive understanding of each field before selecting a specialty. Healthcare management deals with the big business picture of a health organization, while the administrator runs departments and is concerned with staff scheduling and departmental budgets. Until you take the time to analyze both carefully, the confusion between the two can become frustrating.
The best approach to take when trying to determine your career path is to spend time with one of our educational advisors. Also, anyone with practical career experience will be able to give you the advice you need to make the right decision.
Frequently Asked Questions
Is healthcare management the same as healthcare administration?
No. Management focuses on running the entire organization, while administration focuses on staffing and operations.
Do healthcare managers and administrators make the same salary?
Yes, both are classified as Medical and Health Services Managers by the BLS, with a median annual wage of over $100,000.
What degree is required to work in healthcare management or administration?
A bachelor’s degree is typically required, and many professionals earn a master’s degree in healthcare management, healthcare administration, or business administration.
Can I start with an associate’s degree?
Yes. An associate degree in Health Services Administration from FNU is a great starting point that can lead to entry-level roles and further education.
