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.

The U.S. had approximately 616,200 active medical and health services managers in 2024, according to the U.S. Bureau of Labor Statistics (BLS). That number is projected to increase to over 759,000 by 2034, indicating this is a career path with a bright future.

Prior to seeking a health care management role, individuals may work in entry-level roles in health care, information technology (IT), 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, their areas of focus can vary. Health care managers, for example, often focus on the high-level business and operations of health care organizations, whereas health care administrators often supervise staff and day-to-day processes.

Primary Focus

Health care management oversees the overall direction, strategy, and long-term operations of health care organizations. Health care administration manages day-to-day administrative functions and internal processes.

Core Responsibilities

Health care managers handle organizational planning, budgeting, staffing, compliance, and system-wide decision-making. Health care administrators focus on scheduling, billing, patient services, departmental coordination, and office operations.

Typical Roles

Health care management roles include hospital CEO, health care manager, clinical director, and practice manager. Health care administration roles include office administrator, medical office manager, and patient services manager.

Required Skills

Health care managers need leadership, financial management, strategic planning, and policy knowledge. Health care administrators need communication, workflow management, customer service, and proficiency with administrative systems.

Work Settings

Health care managers typically work in hospitals, health systems, large clinics, and long-term care organizations. Health care administrators work in medical offices, outpatient clinics, specialty practices, and administrative departments.

Goal Orientation

Health care management is oriented toward big-picture organizational performance and growth. Health care administration focuses on smooth daily operations and patient-facing administrative efficiency.

Health Care Management Salary

Salary is an important factor when evaluating career paths, especially those that require a specific degree type . Ultimately, candidates expect a return on investment in their education.

The median annual salary for medical and health services managers was $117,960 in 2024, according to the BLS, with the top 10% earning more than $219,080.

The highest-paying employers included the government (median $132,620) and state, local, and private hospitals (median $130,690).

Why Is Health Care Management Important?

Health care management is integral to both day-to-day and long-term success because it is responsible for ensuring that operations run smoothly. Effective management not only affects the conditions for individuals working in these facilities, but it can also influence 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

Health care management is what keeps the facilities that provide care running. There are a variety of types of mid-level 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 medical facilities, 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 consists of 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.

Key Certifications for Advancing in Health Care Management

Professionals in health care management often pursue industry‑recognized certifications to strengthen their leadership skills, validate their expertise, and stand out in a competitive field.

FACHE: Fellow of the American College of Healthcare Executives

The FACHE credential is a board‑certified designation for senior health care leaders who demonstrate mastery of executive‑level management. It requires meeting strict eligibility criteria, completing continuing education, and passing a comprehensive exam.

Why it matters: FACHE signals that a professional has the strategic, operational, and ethical leadership skills needed to guide hospitals, health systems, and large health care organizations. It’s especially valuable for those pursuing director‑ or executive‑level roles.

CPHRM: Certified Professional in Health Care Risk Management

The CPHRM, offered through the American Hospital Association (AHA), is the leading certification for professionals who manage risk, patient safety, compliance, and liability within health care settings.

Why it matters: Health care managers with CPHRM training are equipped to reduce organizational risk, improve patient safety processes, and navigate complex regulatory requirements — critical competencies for anyone overseeing operations or quality initiatives.

CMM: Certified Medical Manager

The CMM credential from PAHCOM is designed for leaders who manage small and midsize medical practices. It validates expertise in the nine core domains of medical practice administration, including finance, human resources (HR), compliance, and patient services.

Why it matters: For health care managers working in clinics or physician practices, the CMM demonstrates hands‑on management capability and a deep understanding of how to run an efficient, compliant, and patient‑centered practice.

Health Care Management FAQ

What industries outside of hospitals hire health care managers?

Health care managers are needed in insurance companies, public health agencies, consulting firms, nonprofit health organizations, telehealth companies, and long‑term care facilities. These roles support operations, compliance, and strategic planning across the broader health care ecosystem.

Is health care management a good career for someone without clinical experience?

Yes. Many health care managers come from business, IT, finance, HR, or administrative backgrounds. Clinical experience can be helpful but isn’t required, as most roles focus on operations, leadership, and organizational strategy rather than direct patient care.

How is technology changing the role of health care managers?

Health care managers increasingly oversee digital transformation efforts, including electronic health record (EHR) optimization, telehealth expansion, data analytics, cybersecurity, and workflow automation. Understanding technology trends is now essential for improving efficiency and patient outcomes.

What soft skills are most valuable in health care management?

Beyond technical knowledge, health care managers benefit from emotional intelligence, conflict resolution, adaptability, and strong communication. These abilities help them lead diverse teams and navigate complex organizational challenges.

Can health care managers work remotely?

Some roles in health IT, insurance, analytics, and administrative leadership offer hybrid or remote options. However, positions tied to hospital operations or on‑site team management typically require in‑person work.

What are the biggest challenges health care managers face today?

Common challenges include staffing shortages, rising operational costs, regulatory changes, patient satisfaction demands, and the need to integrate new technologies. Effective managers balance these pressures while maintaining high‑quality care and efficient operations.

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

HR in Health Care: Purpose, Careers, and More

Understanding Clinical Data Management

What Is Health Services Management?

Sources:

American College of Healthcare Executives, Careers

American College of Healthcare Executives, FACHE

American College of Healthcare Executives, Healthcare Management Career Overview

American Hospital Association, Certified Professional in Health Care Risk Management (CPHRM)

Data USA, Medical and Health Services Managers

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