According to the U.S. Bureau of Labor Statistics (BLS), as of May 2024, more than 616,000 medical and health services managers are employed nationwide. The demand for professionals with strong healthcare management skills continues to rise as healthcare providers expand and patients’ needs increase.
Healthcare management positions generally require a blend of business skills and a passion for helping others, honed through formal education and practical experience. While earning a bachelor’s or master’s degree in healthcare management is the most common educational path to these roles, their actual requirements vary by employer, and many managers build on the experience they gained in entry-level and midlevel roles.
What Is Healthcare Management?
Healthcare management refers to the processes related to the leadership and administration of healthcare organizations and systems as well as the professionals who do this work. While healthcare managers aren’t responsible for direct patient care, they plan, administer and coordinate the healthcare-related functions and operations that make quality care delivery possible.
Also known as healthcare executives or healthcare administrators, these professionals focus on the big picture of organizational success. Their responsibilities often include:
- Budgeting for staff, faculty and resources
- Ensuring compliance with state and federal regulations
- Setting long-term goals
- Communicating across teams
- Evaluating the quality of patient care services
These healthcare professionals exist at many levels, from managers responsible for individual administrative tasks or departments to directors and executives overseeing entire medical facilities, outpatient centers or private practices.
Reasons to Pursue a Career in Healthcare Management
The healthcare management career path attracts professionals from diverse backgrounds, including those with administrative experience — such as medical records assistants and financial clerks — and those with a clinical background — such as nurses and technicians. Regardless of their entry point, these professionals seek out these roles for the meaningful opportunities they offer to make an impact on patients, staff and the healthcare organization as a whole.
Other possible benefits of a healthcare management career include the following:
Opportunity to Specialize
Healthcare management offers opportunities to focus on a specialized area of leadership. For example, aspiring healthcare managers may concentrate on a field such as nursing home management, emergency preparedness, clinical department leadership, healthcare informatics or consulting. These specialty options allow professionals to align their career path with their personal interests and the community’s needs.
Job Outlook
The BLS projects employment of medical and health services managers will grow by 23 percent from 2024 to 2034, a rate much faster than the average for all occupations. This growth is expected to be driven by the rising demand for healthcare services among the aging population and the need for administrators who can navigate evolving regulations and technology.
Work Environment Options
Healthcare managers can choose to work in a variety of types of job settings. The BLS reports that employers of medical and health services managers are broken down as follows:
- Hospitals: 30 percent
- Physicians’ offices: 12 percent
- Nursing and residential care facilities: 9 percent
- Government facilities: 7 percent
- Outpatient care centers: 7 percent
This range of options enables professionals to select an environment that aligns with their skills and career objectives.
Key Skills for Healthcare Management
Because healthcare managers’ responsibilities involve business, administration and healthcare delivery, professionals in these roles need a combination of technical and soft skills to succeed. For example, skills are needed in areas such as:
- Strategic planning
- Critical thinking
- Ethical decision-making
- Healthcare regulations and compliance
- Supply chain management
- Basic healthcare operations
Healthcare management skills also are needed in the following core areas:
Leadership
The ability to lead is one of the most important attributes for healthcare managers, since their roles center on guiding people and fostering a healthy work environment. Strong leadership capabilities help employees feel confident and supported, enabling them to deliver excellent patient care. Being a leader also involves being able to resolve conflicts, build relationships and manage change.
Communication
Healthcare managers need superb verbal and written communication skills to be able to interact effectively with other administrators, executives, shareholders, staff and patients. Communication skills are essential for presenting information, drafting reports, training staff, conducting performance reviews and leading meetings.
Flexibility
Because healthcare evolves quickly, managers must be skilled at adapting to new challenges and solving problems efficiently. Technology advancements, public health events (such as pandemics or natural disasters) and treatment method changes often require rapid decision-making. Managers are frequently tasked with weighing costs against benefits when making decisions, with the overall goal of staying on budget while meeting organizational and patient needs.
Technical Proficiency
Most healthcare facilities rely on electronic medical records and other digital tools to manage their patients’ information, making technical proficiency a key skill for administrators. Managers need to be comfortable navigating these systems, addressing cybersecurity concerns and collaborating with information technology (IT) staff when issues arise. Being technically savvy also means knowing how to leverage technology to recognize trends, analyze data and improve patients’ care delivery processes.
Budgeting
Fluency in financial planning is another important healthcare management skill. Leaders often allocate resources, manage payrolls, cut costs, oversee budgets and make sure that their organization’s financial goals align with its operations. Experience with medical billing, coding and budget spreadsheets is especially valuable in this area.
Benefits of Earning a Degree in Healthcare Management
Leadership experience is valuable, but a formal education can deepen a professional’s understanding of healthcare systems and expand their career opportunities. A healthcare management degree program also allows individuals to specialize in their area of interest, such as quality improvement, healthcare informatics or healthcare finance.
Whether they are bachelor’s or master’s degree programs, most healthcare management programs include courses in strategic planning, health policy, financial management, healthcare human resources and organizational behavior. This coursework not only helps individuals strengthen their technical and administrative skills but also allows them to signal to employers that they are ready for leadership roles and long-term career growth.
Succeed in a Healthcare Management Career
While professionals enter healthcare management from a variety of backgrounds, earning a bachelor’s degree is typically their first step toward leadership roles.
SEMO Online offers a Bachelor of Science in Healthcare Management with two specialization path options: healthcare quality or healthcare informatics. In addition to coursework, students gain practical experience through practicums and internships, preparing them for entry-level management positions.
For advanced learners, SEMO Online’s Master of Science in Healthcare Management provides opportunities to learn about healthcare economics, human resources management and health administration policy. Students can customize their program by focusing on quality and patient safety, informatics or administration.
Learn how Southeast Missouri State University can help you build the skills you need to succeed in healthcare management.
Recommended Readings
Healthcare Management vs. Healthcare Administration
How Long Does It Take to Get a Bachelor’s Degree Online?
How to Become a Health Informatics Specialist
Sources:
Dovetail Research, “What Is Healthcare Management?”
Indeed, “Healthcare Management Careers with Salary and Job Descriptions”
Indeed, “How to Become a Manager in Healthcare (with Skills)”
LinkedIn, “Why Healthcare Management Skills Are Paramount in 2025?”
Randstad USA, “7 Skills Your Healthcare Operations Leaders Can’t Do Without”
Teal Labs, “What Skills Does a Healthcare Administrator Need?”
U.S. Bureau of Labor Statistics, Medical and Health Services Managers