How Do Careers in Healthcare Administration and Healthcare Management Compare?

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When it comes to the healthcare industry, there are many different career paths that individuals can pursue. Popular options are healthcare administration and healthcare management.

Healthcare management and healthcare administration sound like two terms for the same job. In fact, many colleges and universities use the descriptions interchangeably to refer to their degree programs. While they share very similar characteristics, healthcare managers and healthcare administrators may perform different functions depending on the employer.

If you’re considering a career in healthcare, it’s important to understand the differences and similarities between these two fields and which one may be the right fit for you. We’ll compare and contrast these two fields, discussing education and training requirements, job responsibilities, and potential career paths.

Healthcare management is a field focused on the overall direction and strategic planning of a healthcare facility or system.

Healthcare managers, sometimes known as healthcare executives, are in charge of developing policies, implementing programs, and managing the financial operations of healthcare facilities.

Healthcare managers can work in diverse settings, including hospitals, outpatient care centers, insurance companies, pharmaceutical companies, and public health programs.

Healthcare management offers a variety of career pathways. The roles often require strong analytical, communication, leadership, and technical skills.

Notable career paths include:

Healthcare administration is more concerned with the daily operations of specific departments within a healthcare facility.

Healthcare administrators handle tasks such as scheduling, financial management, and compliance with regulations. They are the operational leaders that ensure day-to-day tasks are carried out effectively and efficiently.

Their work is vital to maintaining a safe and comfortable healthcare environment, managing patient admissions, and supporting the smooth operation of the facility.

Healthcare administrators work in a range of settings, such as hospitals, long-term care facilities, and outpatient clinics.

There are many career paths in healthcare administration, and these roles typically require a sequence of steps and qualifications. Career progression typically starts with entry-level positions and progresses to mid-level management roles before reaching senior executive positions. The exact pathway will depend on the individual’s education, experience, and personal career goals.

Career paths in healthcare administration include:

Even though healthcare administration and healthcare management can be similar, they may have distinct roles, responsibilities, and goals, depending on your employer and what setting you work in.

We’ll delve into these differences by looking at their education and training requirements, job responsibilities, and salary and job outlook.

Both healthcare administrators and healthcare managers typically possess a bachelor’s degree. However, to advance in your career, you will likely need a master’s degree in healthcare administration or management.

Some schools carry specialized master of healthcare administration degrees. Others have MBA programs in healthcare management.

Healthcare managers are primarily concerned with strategic operations, including financial management, strategic planning, quality improvement, policy development and stakeholder relations.

On the other hand, healthcare administrators focus more on the day-to-day logistics and management within the healthcare facility. Their responsibilities include optimizing operational efficiency, regulatory compliance, and facility maintenance.

However, some employers may use these terms interchangeably, so be sure to check the job description to make sure what your day-to-day responsibilities will look like.

The salary range and job outlook for careers in healthcare administration and healthcare management are both promising. However, your salary and job prospects can vary depending on where you live, what settings you work in, and how much experience you have.

According to the Bureau of Labor Statistics (BLS), medical and health services managers earn a median annual salary of $110,680 as of May 2023. Employment for these professionals is projected to grow by 28% over the next decade, much faster than the average job growth rate. This growth is driven by factors such as the aging population and the increasing complexity of healthcare services.