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Health Care Management vs. Health Care Administration

Written by: Appalachian State University   •  Jul 25, 2024

A health care manager shows a physician a tablet’s screen in a hospital office.

Understanding the differences and similarities in different health care degree paths is an important part of any student’s career journey. Health care management and health care administration encompass primarily nonclinical, leadership-level careers, and while the two share similarities, their distinct differences can impact a student’s future.

Comparing and contrasting health care management vs. health care administration degree programs is an essential step for anyone considering a leadership or management career in the growing health care industry.

What Is Health Care Management?

Health care management involves coordinating resources, including human resources (HR), to accomplish an organization’s business goals. Management focuses primarily on the long-term, big-picture responsibilities associated with a health care organization. Individuals who work in the field focus on developing procedures, policies and goals that align with the organization’s mission, improve patient outcomes, and lead to both patient and employee satisfaction.

Individuals working in health care management perform various tasks depending on their roles, but common responsibilities include the following:

  • Managing long-term budgets to facilitate profitability and financial stability
  • Developing and realizing health care organizations’ missions and values
  • Implementing policies and protocols to improve communication between departments
  • Developing and prioritizing initiatives designed to improve the organization’s efficiency, safety and productivity
  • Designing and communicating emergency protocols

Careers in Health Care Management

The U.S. Bureau of Labor Statistics (BLS) projects that positions for medical and health services managers will increase by 28% between 2022 and 2032. As baby boomers age, they’ll experience more medical concerns that require health care services, driving the demand for health care managers. The median annual salary for medical and health services managers was $110,680 as of May 2023, according to the BLS, with those working in hospitals or government facilities the highest earners.

Career opportunities for graduates vary when considering health care management vs. health care administration. Health care management degree graduates can work for various types of employers. For example, while some graduates seek careers in hospitals or physicians’ offices, others might work for insurance companies or behavioral health centers.

Medical Records Manager

Medical records managers oversee a facility’s digital and traditional patient records, including the policies governing their storage. They supervise a team to ensure compliance with all the ethics laws, guidelines and policies that apply to patient information and medical records.

Hospital Manager

Hospital managers work directly with clinical and administrative staff to facilitate the delivery of medical services at hospitals. They focus on the hospital’s long-term success through tasks such as budgeting, resource allocation, staffing and community outreach.

Health Care Consultant

Health care consultants help hospitals and other health care facilities improve their profitability and efficiency. They analyze operations and look for ways to cut costs and reduce risk and liability to increase profitability.

Health Care Project Manager

Health care project managers oversee projects within a facility or network. For any given project, such as expanding a department or implementing new processes, these individuals are responsible for finding and allocating resources, such as funding, staff and equipment.

What Is Health Care Administration?

Health care administrators oversee a health care facility’s day-to-day operations while working toward long-term goals. They’re responsible for balancing the needs of staff and patients and the various ethical, legal and regulatory requirements that affect the delivery of care. They may also be responsible for managing the services that a health care facility offers.

When comparing careers in health care management vs. health care administration, administrators’ job duties tend to vary more significantly due to the many potential roles they can fill. The most common responsibilities may include the following:

  • Maintaining and organizing patient files and records
  • Hiring and training staff; providing disciplinary action when required
  • Leading individual departments within a facility
  • Maintaining a supply of equipment and medical supplies
  • Offering customer service, particularly as it applies to billing and records
  • Enforcing compliance with rules and regulations

Careers in Health Care Administration

The BLS projects that positions for administrative services and facilities managers, including health care administrators, will increase by about 5% between 2022 and 2032. The need to replace retiring administrators or those who transfer to different careers will be a key growth driver. The median annual salary for the position was $106,470 as of May 2023, according to the BLS.

The career opportunities for health care administration graduates are broad, encompassing numerous industries and roles. Hospitals, doctors’ offices, insurance companies, medical laboratories, nursing homes, dental offices and other private businesses may employ health care administrators.

Dental Office Manager

Dental office managers oversee the various administrative duties in a dentist’s office. Their most important tasks include scheduling staff and meetings, maintaining the office’s budget, and processing payroll at the required intervals. In small practices, dental office managers may also answer patients’ questions and schedule appointments.

Facilities Manager

Facilities managers focus on maintaining an organization’s physical assets, finding ways to make them more efficient and reducing overall costs. These individuals may also be responsible for planning improvements or making necessary changes required to install new equipment. They’re also involved in department expansions or additions.

Training Manager

Training managers are responsible for providing instruction to new hires and continuing education for employees. In health care, this training often involves onboarding new staff through orientation programs, which dictate facility-specific processes and procedures.

Human Resources Manager

HR managers are responsible for overseeing a health care facility’s HR department. They’re involved in recruitment, developing strategies to attract talent, and managing employee payroll and benefits packages. They may also work to solve conflicts between departments in a facility; take disciplinary actions, including termination; and provide regular employee performance reviews.

Health Care Management vs. Health Care Administration: The Differences

Health care management and health care administration are related, but their differences can lead to significantly different career opportunities. Understanding these differences can help students choose a degree and career path that best suits their personal goals.

While managers focus on the long-term stability and success of a health care facility, administrators are more aligned with the immediate day-to-day operations. Health care managers’ roles involve managing the work that needs to be done, and health care administrators allocate the resources for that work.

Shape the Future of Health Care With a Career in Health Care Management

Although health care managers and health care administrators have different titles, roles and responsibilities, the two work together very closely. Aspiring professionals who are passionate about helping deliver the best possible patient outcomes while maintaining a team of happy, satisfied employees should consider a health care management career.

Appalachian State University’s Bachelor of Science in Health Care Management online program combines business knowledge with courses focused on helping students understand the health care industry. Courses such as Introduction to Health System Organization, Health Care Economics, and Health Law and Policy prepare students for a wide range of careers in which they can make a difference in countless lives. Find out how App State Online can help you take control of your career with a degree in health care management.

Sources:

Indeed, 18 Jobs You Can Get With a Degree in Health Care Administration

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

Indeed, 12 Health Care Management Jobs to Consider

Indeed, What Is Health Care Management?

IntelliPaat, “Management vs. Administration: What’s the Difference?”

Key Differences, Difference Between Management and Administration

Teal, What Is a Healthcare Administrator?

U.S. Bureau of Labor Statistics, Administrative Services and Facilities Managers

U.S. Bureau of Labor Statistics, Medical and Health Services Managers