How to Become a Health Care Executive

Hospitals, doctors’ offices, surgery centers and other health care facilities are successful in helping patients due to the skill and perseverance of their clinical personnel. Behind the scenes, however, health care executives support these clinicians by ensuring that their facilities and departments run smoothly. Numerous careers fall under the health care executive umbrella, including hospital chief executive officers (CEOs), nursing directors and chief finance officers (CFOs).

Part of learning how to become a health care executive involves examining the role’s responsibilities, the education and experience required, and the future career outlook. A Bachelor of Science (BS) in Health Care Management degree can provide the foundational knowledge required to gain experience in an entry-level administrative or management role.

What Is a Health Care Executive?

A health care executive is a skilled professional who ensures the successful operation of medical facilities. They provide the financial and strategic foundation that allows physicians, nurses, surgeons, aides and other facility staff to provide exceptional care for their patients and their communities.

Key Duties and Responsibilities

Learning how to become a health care executive starts with understanding that different types of executives have different roles. For example, a hospital CEO holds the highest rank in the organization and oversees the entire facility’s operations. A hospital CFO, on the other hand, is the head of the financial department and oversees purchasing, budgeting and financial planning. The CFO reports directly to the CEO.

The duties that health care executives may perform based on their roles include the following:

Marketing and advertising
Public relations
Patient care services
Project planning and development
Facility food planning and distribution
Quality control and improvement
Risk management
Staffing needs
Resource management, including the purchase and distribution of supplies
Financial management and budgeting
Information technology (IT)

Typical Work Environments

Health care executives work in a wide range of settings, from large hospitals and health care networks in metropolitan areas to small, privately owned hospitals in rural settings. They work in clinics, nursing homes, home health agencies, public health departments and pharmaceutical companies. Some of these executives eventually choose to leave the corporate world to become educators or researchers for colleges and universities.

Health Care Executive Education and Experience Requirements

When learning how to become a health care executive, it is important to examine the education and experience required to pursue these roles. The requirements can vary from one position to the next based on the position, the size of the organization and the needs of the organization.

Education Requirements

According to the U.S. Bureau of Labor Statistics (BLS), the minimum education required to work as a medical and health services manager or a top executive is a bachelor’s degree. Though most executives pursue a baccalaureate degree in business management or health care management, some earn degrees in IT or engineering based on their desired career outcomes.

As the technology used in health care continues to evolve, and as the medical industry grows more complex, organizations are increasingly seeking candidates with master’s degrees in business or health care administration or the equivalent experience.

Experience Requirements

The BLS reports that health care executives need about five years of experience in a related field to be considered for high-ranking positions. The American College of Healthcare Executives (ACHE) recommends earning a bachelor’s degree in health care management in preparation for entry-level to mid-level roles in finance, patient care, risk management, quality improvement and other health care-related roles.

Optional Certifications

After learning how to become a health care executive, many students choose to earn optional certifications that demonstrate their competency and knowledge in specific settings. Certifications include the following:

Certified Professional in Health Care Risk Management: The CPHRM certification from the American Hospital Association is widely considered the most valuable certification among executives who work in risk management. To sit for the exam, candidates must have at least a bachelor’s degree, five years of experience in health care and 3,000 hours of direct risk management experience.
Certified Medical Manager: The CMM credential from the Professional Association of Health Care Office Management demonstrates the candidate’s knowledge of health care-specific business management. Candidates must have two years of health care experience and 12 college credits in business or health care courses to sit for the exam.
Fellow of the American College of Healthcare Executives: The FACHE credential from ACHE is the gold standard among health care executives. The credential demonstrates that candidates have a firm grasp of every element required to thrive in a high-level health care management position.

Salary and Job Outlook for Health Care Executives

Learning how to become a health care executive involves examining the potential salary and job outlook associated with these careers. According to the BLS, chief executives working in health care and social assistance earned a median annual salary of $194,280 in 2023.

The BLS projects that employment of top executives will grow by about 3% between 2022 and 2032; this is average across all occupations. Demand for skilled professionals who can keep health care organizations running smoothly will drive growth.

Take the First Step Toward a Career as a Health Care Executive

Health care executives’ expertise and training help them develop and maintain their organizations financial and operational footing. Though they do not provide patient care directly, they partner with doctors, nurses, surgeons and others to create and maintain an environment that promotes quality care.

If you are interested in learning how to become a health care executive, Appalachian State University’s BS in Health Care Management degree program is an excellent foundation that can prepare you for entry-level and mid-level management positions. Discover how our program can help you gain the knowledge, skills and hands-on experience you need to thrive as a CEO, CFO, director or other top-ranking executive.

Sources:

American College of Healthcare Executives, Careers

American College of Healthcare Executives, FACHE

American College of Healthcare Executives, What Is a Healthcare Executive?

American College of Healthcare Executives, Your Career as a Healthcare Executive

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

Indeed, 8 Healthcare Management Certifications

Indeed, “How to Become a Health Care Administrator in 5 Steps”

Professional Association of Health Care Office Management, Certified Medical Manager

U.S. Bureau of Labor Statistics, Top Executives