What Is a Practice Manager in Healthcare? Career and Salary Guide

A career in healthcare can be a fulfilling and steady choice. Opportunities in healthcare are abundant and projected to continue to grow by about 1.8 million jobs per year through 2032, according to the U.S. Bureau of Labor Statistics (BLS).

Healthcare practitioners and technical occupations took in a median annual salary of $80,820 as of May 2023, nearly double the median annual wage for all occupations, BLS data shows.

Healthcare management positions like practice manager are important parts of the healthcare workforce. They may not care for patients, but they do help oversee the day-to-day operations, particularly financial operations, that keep a healthcare facility running smoothly and effectively.

“Think of a practice manager as the conductor of an orchestra — without them, everything would fall out of sync,” Courtney Haun, Ph.D., MPH, professor and director of the Healthcare Administration Undergraduate Program at Samford University in Alabama, told BestColleges. “They ensure that the healthcare facility works in harmony. The central role of a practice manager is to create a seamless operational flow so that healthcare providers can focus on what they do best — caring for patients. It’s a role that requires you to be proactive, organized, and always a few steps ahead.”

Learn more about what a healthcare practice manager does and how you can pursue a career in this field.

Practice managers in healthcare receive specialized training in the administrative and financial areas needed to run a healthcare facility. They are responsible for many or even all daily operations within a hospital or other healthcare facility.

There are many places a practice manager can work including:

Practice managers are often in charge of many financial tasks. They must ensure efficient and accurate billing and will also help create and manage budgets.

To help a facility meet its goals, healthcare practice managers enhance patient experiences and outcomes. They can also contribute to staff engagement and support for clinical and nonclinical employees.

Practice managers routinely have important and sometimes difficult discussions with other administrators, regulators, insurance carriers, medical and administrative staff, and other stakeholders. This means they need strong interpersonal skills.

“A great practice manager is a bit like a Swiss Army knife — equipped with a variety of tools to handle any situation,” Haun said. “On the technical side, you need a solid grasp of financial management, an understanding of healthcare regulations, and proficiency with healthcare IT systems like electronic health records. However, it’s the soft skills that often set the best managers apart. You need to be an exceptional communicator, able to navigate the delicate balance between staff needs and organizational goals.”

Although responsibilities depend on the size and nature of the facility, practice managers implement policies and procedures that keep the medical office running smoothly.

Practice managers are often responsible for:

Other daily tasks involve overseeing the security procedures that guard the private information of the business and its patients.

Practice managers also seek ways to lower overhead costs, improve efficiency, and supervise nonclinical staff like billers and coders. In smaller offices, they may need to perform these tasks directly, particularly if the practice is short-staffed.

As a healthcare management position, practice managers may need to mediate issues among office personnel. They may also need to defuse a customer service problem or a dispute with an external company.

A good practice manager exercises a high degree of discretion, judgment, and skill to keep operations running. Managers acquire these skills from years of training and experience.

Credentials and educational requirements vary, but generally, you need an undergraduate degree to get started.

“Getting your foot in the door starts with the right education,” Haun said. “A degree in healthcare administration or business is a great foundation. But don’t stop there — certifications like the Certified Medical Practice Executive (CMPE) can give you a competitive edge. Practical experience is just as important, so look for internships or entry-level positions where you can get hands-on with the daily operations of a healthcare facility.”

According to the BLS, healthcare practice managers earned an average annual wage $134,440 as of May 2023. But you may earn more (or less) depending on factors like employer, work setting, geographic location, experience level, and more. The top 10% of healthcare managers earned a median annual salary of $216,750 that same year.

The BLS projects medical and health services manager jobs will grow by a whopping 28% — much faster than the national average of 5% — from 2022-32. Technology-savvy healthcare managers are projected to be in particularly high demand.

The aging baby-boomer population and the added pressures they may place on clinical staff and health facilities may fuel the high demand for health services managers.

“If you are the kind of person who enjoys bringing order to chaos and you have a passion for making systems work efficiently, practice management could be a perfect fit,” Haun said. “It’s a role that blends business with healthcare, so if you’re drawn to both worlds, this might be where you find your niche. However, you should be honest with yourself — this role isn’t just about managing paperwork. It’s about leading people, solving problems, and making strategic decisions that impact patient care.”