What Is Health Services Management?

The U.S. has approximately 340 million people who are served by 6,093 hospitals, according to the American Hospital Association (AHA). In each hospital, highly trained professionals oversee everything from patient satisfaction to ordering new water heaters. This critical field is called health services management.

Careers in health services management are well suited to experienced, compassionate individuals who are drawn to health care leadership rather than direct patient care. However, their duties impact patients directly by streamlining care processes, integrating patient feedback, and improving service coordination.

A bachelor’s degree in health care administration can provide the essential training needed to get started in the field.

Defining Health Services Management

The term “health services management” refers to the supervision of operations at a health facility, hospital, or public health system. This field combines oversight of various patient services through leadership and proper administration that meets legal, financial, and regulatory requirements. Professionals in this field ensure that medical facilities operate smoothly and provide high-quality patient care.

Nurses, technicians, doctors, and other clinical staff contribute to delivering the best patient services, while managers ensure that staff have the support, services, and structure to succeed.

State of Health Services in the US

In a 2023 report, the American Medical Association (AMA) found that the United States spent approximately $4.9 trillion on health care. Most of this was spent on hospital care, followed by physician services and other personal health care services.

According to The Commonwealth Fund, an independent organization that conducts and supports research on health care issues, there’s considerable variation in health care services among the states. For example, Massachusetts, Hawaii, and New Hampshire were the highest-ranking states in health system performance, according to The Commonwealth Fund’s 2023 Scorecard on State Health System Performance. These states measured highest in reproductive care, cost of services, access, quality, women’s health, health outcomes, and health disparities. Mississippi, Oklahoma, and West Virginia were the lowest-ranking states.

Individuals are also spending more on private health insurance. Data from the Centers for Medicare & Medicaid Services (CMS) shows that spending grew by 11.5% in 2023.

How Health Services Management Works

Health services management requires leaders with specific responsibilities and skills. These duties are typically divided into departments that have their own health care managers (also known as health care administrators), clinical managers, medical and health services managers, nursing home administrators, health information managers, and health care executives.

Depending on the size of the facility, managers may oversee an entire operation or just one department. Their duties are often grouped into divisions such as the following:

Human Resources. Managers help recruit, evaluate, supervise, and train medical and administrative staff members. Many also create work schedules. Building strong, knowledgeable, and skilled teams can improve the patient experience.
Operations and Facilities. Operations and facilities duties can include everything from meeting with department leaders to maintaining a list of open inpatient beds. Managers may also verify that the facility is in compliance with local, state, and federal regulations.
Strategic Planning. Health services managers plan, implement, and oversee a facility’s short- and long-term goals, typically in partnership with other department leaders.
Financial Oversight. Preparing and monitoring costs is one of a health services manager’s most important tasks. Aside from billing, these professionals may oversee payroll, create department budgets, and monitor expense records.
Corporate Communication. Corporate communication may include managing social media posts and communicating with the public about new policies or facility updates.

Other duties may include analyzing patient feedback surveys and staying current on evolving health care technologies, such as electronic health records (EHRs).

Why Does Health Services Management Matter?

Health services management helps make medical facilities work. Without a formal infrastructure and the expertise of management professionals, health care systems would struggle to provide the best patient care while also running facilities.

In addition, an established management system helps identify system waste and reduce costs. This field is also critical to serving underserved communities, reducing patient wait times, and supporting public health initiatives. Health services managers work collaboratively to improve patients’ access to care and enhance their experiences.

Pursue a Career in Health Services Management With a Degree From NCCU Online

The most common educational path to a career in health services management is to earn a bachelor’s degree in a related area. Prospective managers should also have experience in administrative roles in health care settings.

At NCCU Online, students can gain a foundation in the field by earning an online Bachelor of Science (BS) in Health Administration. This remote program is ideal for working professionals who need flexible learning schedules. Students learn the intricacies of health care systems, how to improve disparities, and ways to provide leadership and administrative support.

This bachelor’s degree is part of the university’s Flight Path Programs, which focus on providing affordable education that prepares graduates for career advancement. Common postgraduate careers include various health care management positions, such as health policy analyst, health information manager, and health care consultant.

Find out how NCCU Online’s bachelor’s degree program can prepare you for a career in health care administration.

Recommended Readings

Public Health vs. Health Administration: Exploring the Impact

What Is Health Care Management?

What Does a Health Care Manager Do?

Sources:

American Hospital Association, Fast Facts on U.S. Hospitals, 2025

American Medical Association, Trends in Health Care Spending

Centers for Medicare & Medicare Services, NHE Fact Sheet

Indeed, What Is Health Service Management? Definition and Career Guide

The Commonwealth Fund, 2023 Scorecard on State Health System Performance

U.S. Air Force, Health Services Management