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Healthcare Management vs. Healthcare Administration: Understanding the Differences

Date
April 21, 2024
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Nurse Home Administrator

Healthcare management and healthcare administration are two crucial pillars of our healthcare system’s infrastructure, with each area involved in supporting medical staff and nurses as they work to treat patients and save lives.

While healthcare managers and healthcare administrators share some intersecting interests and focuses, each also is responsible for distinct duties and professional roles. Though they sometimes are confused for one another, the titles aren’t meant to be interchangeable.

Both jobs focus on ensuring that healthcare facilities run smoothly, but how that plays out in the day-to-day responsibilities can look different.

If you’re interested in a career helping ensure effective and efficient operations throughout our healthcare system, you may be interested in pursuing one of these roles. In both cases, earning graduate-level education, such as an online Healthcare MBA, can help you prepare to thrive as you meet the challenges of overseeing operations in a healthcare setting.

Check out the similarities and differences, and see which role best fits your professional interests.

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What are the Similarities Between Healthcare Management and Healthcare Administration?

Healthcare management and healthcare administration share several similarities as they both have the shared goal of supporting the efficient and effective delivery of quality healthcare services.

Both fields involve overseeing the operational aspects of healthcare facilities, including staffing, budgeting and regulatory compliance. They also require strong leadership, communication and organizational skills to navigate complex healthcare systems successfully.

While there may be slight differences in emphasis, healthcare management and healthcare administration ultimately converge in their overarching goal of facilitating the smooth functioning of healthcare organizations to serve patients and communities effectively.

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What Are the Differences Between Healthcare Management and Healthcare Administration?

The key distinguishing factor between healthcare managers and healthcare administrators is their focus. The two roles share considerable overlap in their goals and efforts, but according to online career resource Zippia, administrators tend to be more focused on the daily operations and logistics, such as staffing coordination and budgeting, whereas managers tend to work more closely with staff and medical professionals to help ensure positive patient outcomes.

Healthcare management is focused on the more strategic operations of a healthcare facility. This includes overseeing the staff and medical professionals who do the day-to-day work and treat patients. Managers also are concerned with ensuring the members of their teams have the resources to do their jobs effectively.

Healthcare administration, on the other hand, is focused on the processes and logistics within the organization, with responsibilities supporting facility goals and operations more directly.

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Healthcare Administration and Healthcare Management Careers in Practical Terms

When you conduct your job search, you’re likely to find plenty of roles with similar but adjacent titles, rather than “healthcare administrator” and “healthcare manager.”

Because of this, roles with “manager” in the title may, in practical terms, align more closely with the duties and areas of emphasis of administration as outlined above, and vice-versa. For example, a role with the title “operations manager” or “office manager” may focus less on managing personnel or patient care and more on logistics and other typically administrative duties.

Administrator roles tend to align more closely with the above-outlined duties and expectations, but roles like “clinical administrator” or “ambulatory administrator” may require more direct contact with and oversight of medical and nursing staff in addition to the emphasis on facility operations.

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What Is Healthcare Management?

Healthcare management professionals aren't just concerned with hiring and overseeing staff.

They handle the financial side of operations as well, making sure supplies are stocked and keeping the facility running smoothly. Their role is crucial in keeping the healthcare facility financially stable.

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Roles and Responsibilities of a Healthcare Manager

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What Is Healthcare Administration?

Healthcare administrators (HAs) are deeply involved in the micro-level operations of running a healthcare facility efficiently and effectively. By coordinating the facility's operations in an organized and efficient way, their day-to-day responsibilities are hyper-focused helping to ensure medical professionals have the resources and support to provide high-quality patient care.

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Roles and Responsibilities of a Healthcare Administrator

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Educational Requirements

While educational requirements for these positions may differ depending on factors like the particular role, employer or area of operation, there’s a correlation between education and successful career outcomes.

The typical minimum requirement for healthcare management and related careers is a bachelor’s degree, according to the U.S. Bureau of Labor Statistics (BLS). Likewise, data compiled by Zippia shows entry-level healthcare administration positions also tend to require a bachelor’s degree.

However, if you hope to stand out among applicants and move into higher-level leadership roles, earning at least a graduate-level education in a related field can enhance your skills and improve your prospects of landing a job or advancing in your career. Typical areas of study include business administration, public health, health administration, health management and related fields.

Obtaining a Healthcare MBA can be beneficial for both healthcare managers and healthcare administrators, since this specialized degree combines the two primary functions of those roles: business and healthcare. Other degrees, such as a master’s in health administration, also offer viable paths toward healthcare leadership, though they may not be as flexible or open as many potential career pathways. These are among the reasons for choosing a Healthcare MBA.

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Salary and Career Outlook for Healthcare Administration and Healthcare Management

Healthcare administration and healthcare management comprise an array of potential roles, from entry-level administrative positions and mid-level manager jobs to leadership positions in the C-Suite of a healthcare organization.

Because of that, there’s no specific salary associated with either position. However, data suggests that annual or hourly pay for both career paths is comparable.

According to the BLS, medical and health services managers, a category that includes healthcare managers, earned a median salary of about $104,000 in 2022, roughly $5,000 more than the average for management positions across all fields and well over double the average nationwide full-time salary for all jobs. Median pay was highest for hospitals and government (about $125,000 and $119,000, respectively), and the top 10% of earners reported more than $209,000 in annual pay.

With more entry-level positions in the mix, healthcare administration careers have a slightly lower average salary of about $94,000 nationwide, according to data compiled by ZipRecruiter.

However, higher-level positions like health services administrator and patient services administrator have median salaries comfortably above $100,000, with some positions like nursing home administrator exceeding $120,000.

If you plan on pursuing higher-level, higher-paying positions in either field, your chances of success are likely to be greater if you have at least a graduate-level education and several years of relevant experience.

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Career Paths and Opportunities

Both healthcare management and healthcare administration offer a variety of career paths. However, there are differences in career opportunities and advancement potential.

As discussed above, role titles and exact wording may differ depending on the employer and other factors, and the words “manager” and “administrator” may be used more loosely to define certain roles.

While competencies are similar for both types of roles, it’s always important to read the job description thoroughly to ensure that the role’s duties and expectations align with your skill set, interests and desired responsibilities.

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Some specific healthcare management job titles include:

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Some specific healthcare administration job titles include:

Individuals may choose to pursue advanced degrees or certifications to further their careers in either field. A Healthcare MBA can help individuals achieve their career aspirations by providing them with the skills and knowledge needed to succeed in the healthcare industry.

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Healthcare Management vs. Healthcare Administration: Which One Is Right for You?

Healthcare management and healthcare administration are two distinct professions with different roles and responsibilities that also share some common ground, and choosing between them depends on individual strengths and interests.

By understanding the differences between the two, you can make an informed decision about which career path is right for you.

A Healthcare MBA can help both healthcare managers and healthcare administrators succeed in their careers. It provides individuals with the skills and knowledge needed to succeed in the healthcare industry and can help administrators advance to higher-level positions.

If you’re ready to explore education options to advance your healthcare career or pursue a new specialization, learn more about how the GW online Healthcare MBA can help you achieve your goals and pursue your interests.

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Sources

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