How to Become a Health Care Executive: Step-by-Step Guide

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 from App State Online can provide the foundational knowledge required to gain experience in an entry-level administrative or management role.

What Does a Health Care Executive Do?

Health care executives are skilled professionals who ensure 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, Responsibilities and Skills

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 an 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)

To lead effectively in today’s complex health care landscape, executives rely on a combination of leadership, analytical and industry‑specific competencies. The most essential skills include:

Strategic planning and long‑term decision-making
Financial literacy and budget management
Communication and interpersonal skills
Regulatory and compliance knowledge
Data analysis and performance measurement
Change management and organizational leadership
Problem-solving and critical thinking
Talent development and team leadership
Patient‑centered thinking and service orientation
Technology proficiency, including electronic health records (EHRs) and health information systems

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. Common work environments include 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. The requirements can vary from one position to the next based on the specific position, the size of the organization and the needs of the organization.

Step 1: Earn a Bachelor’s Degree in Health Care Management

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 career plans.

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.

Step 2: Gain Experience in Health Care Operations

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.

Step 3: Pursue Health Care Leadership 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 candidates’ knowledge of health care-specific business management principles. 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.

Step 4: Consider a Master’s Degree (MHA or MBA)

Although bachelor’s degrees and relevant experience can qualify professionals for many administrative and management roles, many health care executives pursue graduate education to strengthen their leadership potential. A Master of Health Administration (MHA) or Master of Business Administration (MBA) degree can provide advanced training in organizational strategy, finance, policy, analytics and health care operations.

An MHA is typically designed for those who want to deepen their expertise in health care systems, quality improvement, population health and regulatory compliance. An MBA, on the other hand, offers broader business leadership training that can be applied across sectors. Both degrees can help candidates stand out in competitive hiring environments, especially for senior‑level or C‑suite positions.

Step 5: Develop Executive Leadership Skills

Beyond formal education, successful health care executives cultivate leadership competencies that allow them to guide teams, manage change and make informed decisions in fast‑paced environments. These skills are developed over time through hands‑on experience, mentorship and professional development opportunities.

Essential executive leadership skills include:

Strategic thinking and long‑term planning
Emotional intelligence and relationship‑building
Clear, confident communication
Ethical decision‑making
Conflict resolution and negotiation
Adaptability in rapidly changing environments
Team motivation and performance management
Cross‑departmental collaboration
Cultural competence and inclusive leadership
Ability to lead through uncertainty and organizational change

These competencies help executives navigate the complexities of modern health care to support both operational needs and high‑quality patient care.

Health Care Executive Salary: Entry to the C-Suite

Professionals researching how to become a health care executive should also consider salary and job outlook. According to the BLS, top executives working in health care and social assistance earned a median annual salary of $194,360 in 2024.

The BLS projects that employment of top executives will grow by 4% between 2024 and 2034, slightly above the average for all occupations. Demand for skilled professionals who can keep health care organizations running smoothly will continue to 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, App State Online’s BS in Health Care Management degree program offers an excellent foundation that can prepare you for entry- and mid-level management positions. Discover how our program can help you gain the knowledge, skills and hands-on experience to thrive as a CEO, CFO, director or other top-ranking executive.

Recommended Readings

Health Care Management Technology: Tools and Tips

How Dr. Eberly Prepares Students for Careers in Health Care Management

Understanding Rural Health Disparities and How to Combat Them

Sources:

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 Healthcare Administrator in 5 Steps”

PAHCOM, Certified Medical Manager