What Is Health Care Management?

Health care management is a broad field that encompasses professionals working at many levels across the health care industry. Physician’s offices, hospitals, long-term care facilities, clinics, insurance companies, and nonprofit health organizations employ managers to oversee their budgets and staffing, facilitate the delivery of high-quality patient care, keep up with regulatory changes, and develop organizational objectives.

There are approximately 734,000 medical and health services managers working in the country, according to a 2022 report from Data USA.

Prior to seeking a health care management role, individuals may work in entry-level roles in health care, information technology, finance, public affairs, or risk management. Earning a bachelor’s degree in health administration can enable individuals to gain the operational management, strategic planning, and patient care knowledge and skills needed to become an effective leader in health care.

Health Care Management Definition

Health care management is the work of overseeing all or part of a medical facility or organization. Health care managers, also called health care administrators or executives, are responsible for planning, executing, and organizing a number of nonclinical tasks and functions. In most cases, several individuals are involved in managing a facility, including a chief executive, health information manager, nursing supervisor, and chief compliance officer.

While their duties can vary by setting, these individuals work together to perform tasks such as:

Creating and implementing organizational goals
Ensuring compliance with local, state, and federal laws, such as patient privacy laws
Acting as their organization’s spokesperson
Overseeing financial operations

There is significant overlap between management and administration in health care. However, the areas of focus can vary for these professionals. Health care managers, for example, often focus on the high-level business and operations side of a health care organization, whereas health care administrators often supervise the staff and day-to-day operations.

Why Is Health Care Management Important?

Health care management is integral to both the day-to-day and long-term success of an organization because it is responsible for the organization’s smooth operations. Effective management not only affects the conditions for individuals working in these facilities, but it can also impact the health of the facilities’ patients. A well-run health care organization can contribute to patients’ satisfaction by having sufficient staffing, resources, and services.

Health Care Management Career Paths

There are a variety of types of midlevel and senior-level positions in health care management, and they each appeal to professionals with different interests and career goals. At their core, however, all health care managers prioritize supporting providers in caring for patients, facilitating the smooth operation of the medical facility, and fostering effective collaboration among medical personnel.

Here are some of the most common health care management roles:

Hospital manager
Health services manager
Executive director
Nursing supervisor
Patient care manager
Case manager
Long-term care administrator
Clinical manager
Medical records supervisor
Chief of staff
Health care project manager

Tips for Working in Health Care Management

Health care management is a broad field that encompasses many types of roles. Prospective or current professionals may benefit from the tips below.

Choose a Specialization

Professionals looking to start or advance their careers in health care management may want to pursue a specialty area. This can allow them to focus on an area that aligns with their career goals and experience. Common specializations include clinical management, budgeting and accounting, technology, and health care consulting.

Keep Up With Technological Advancements

In recent years, there has been a significant uptick in the number of emerging technologies being developed to streamline organizational processes in health care. Telehealth and virtual health care assistant technologies are increasingly being used to communicate with patients, staff members, and health care providers, for example.

Prospective health care managers can stay abreast of these changes by completing continuing education courses, webinars, professional development, or seminars to improve their technical knowledge.

Necessary Skills in Health Care Management

Individuals working in health care management need a combination of key skills to carry out their duties. The capabilities that health services managers should have include:

Communication skills. Managers interact with the public, patients, stakeholders, and health care workers, so they should have strong verbal and written communication skills to be able to convey information clearly.
Attention to detail. This skill ensures that managers are capable of paying attention to details involved with coordinating and balancing their business, financial, and operational responsibilities.
Leadership skills. In health care management, leadership skills are needed to enforce policies, oversee staff, and work with investors, among other tasks.
Technical proficiency. Given the increase in the use of electronic health record (EHR) systems and other health care technologies, managers need to be up to date with advancements and basic software operations.
Analytical skills. Managers need analytical skills to be able to handle tasks such as interpreting health care laws, reviewing metrics to improve patient satisfaction, and evaluating ways to increase operational efficiency.

Discover How a Bachelor’s Degree Can Launch Your Health Care Management Career

After learning what health care management is, you may wonder how prospective managers enter the field. Earning a bachelor’s degree in a related subject can provide you with the fundamental knowledge and practical skills you’ll need to meet the challenges of working in health care management.

North Carolina Central University’s online Bachelor of Science in Health Administration program can provide you with the foundation required to effect positive change as a health care manager. The flexible, fully online program includes both clinical and managerial coursework. Sample courses include Professional Ethical Codes and Law in Health Care, and Professional Roles and Environments in Health Care. Graduates of the program are prepared to pursue positions in health care management, administration, or consulting.

Find out how NCCU Online can prepare you for a health care management career.

Recommended Readings

Health Leadership in Community-Based Organizations

How to Become a Health Care Consultant

How to Become a Clinical Manager

Sources:

American College of Healthcare Executives, Careers

American College of Healthcare Executives, Healthcare Management Career Overview

Data USA, Medical and Health Services Managers

Dovetail Research Pty. Ltd., “What Is Healthcare Management?”

Healthcare Financial Management Association, “8 Healthcare Trends for 2024: A Guide for Health System Leaders and Their Boards”

Indeed, “Health Care Management vs. Health Care Administration”