The healthcare industry is made of so many moving parts. Naturally, there are professionals who work each part to make sure that healthcare delivery and management are as efficient as possible. Health administration is one of the critical aspects of healthcare.
While many of us are familiar with clinical healthcare professionals and the role they perform, we are not very familiar with the role of healthcare administrators in the healthcare system. This is because they mostly work behind the scenes, and we hardly have any reason to interact with them. In this blog post, we will explore what healthcare administration is, what it entails, and, very importantly, how it differs from clinical professions.
What is healthcare administration?
Healthcare administration is the management and organization of healthcare systems, facilities, and resources. Healthcare administrators are responsible for overseeing the delivery of healthcare services to patients and managing the financial, human, and technological resources necessary for the smooth functioning of healthcare facilities.
It should be noted, however, that healthcare administration is not restricted to the hospital setting. Healthcare administrators work in various settings, including hospitals, clinics, long-term care facilities, insurance companies, and even the public sector or government.
Their responsibilities may include developing and implementing policies and procedures, managing budgets and finances, supervising staff and medical professionals, ensuring regulatory compliance, and planning and implementing new programs and services.
Healthcare administration is a complex and dynamic field that requires a strong understanding of healthcare systems, business management, and healthcare law and policy. Healthcare administrators wear many hats; for this, they need a strong combination of technical and leadership skills.
What are clinical professions?
To make any effective comparison between healthcare administration and clinical professions, we must also understand what clinical professions are and what counts as a clinical profession.
In simple terms, the professionals who are involved in patient care directly are clinical professionals. They are involved in diagnosing, treating, providing care, testing, and managing patients. They interact with patients, although this interaction is sometimes virtual or remote. Clinical professions are typically highly regulated by a governing body that issues licenses to admit new practitioners.
Some common examples of professionals in this category are nurses, physicians, occupational therapists, dentists, pharmacists, physiotherapists, dentists, and pharmacists.
What does healthcare administration entail?
The question of “what is healthcare administration?” is better answered with a thorough description of what it entails in practice. As stated earlier, healthcare administration is about the overall management of a healthcare organization. This includes the following:
- Human resources management
Human resources are arguably the most valuable resource of any organization. Health administrators oversee hiring and managing staff, providing training, and ensuring the organization has the necessary human resources to operate efficiently.
A healthcare organization can have a dedicated team of human resource managers. However, the overall management of human resources rests on the administrator. They have the final say in hiring, layoffs, and other disciplinary actions against any staff member.
- Financial management
A healthcare administrator is not the accountant of the organization. However, they are still responsible for managing the financial resources of the organization. This involves creating and managing budgets, monitoring expenses, and ensuring that the organization operates within its financial means and stays profitable.
- Resource allocation
In a typical healthcare institution, there are multiple departments and teams working together. The healthcare administrator is responsible for deciding who gets what and when. They distribute money, equipment, and personnel depending on the needs of every department.
- Business strategy and development
The ultimate aim of any healthcare organization is to make profits. It is the duty of the health administrator to figure out how. Healthcare administration involves building business models and implementing strategies for building and scaling the healthcare organization. Healthcare administrators must develop long-term plans to ensure the organization is well-positioned to meet the changing needs of the community.
- Regulatory compliance
Healthcare is a highly regulated industry. This is because of the sensitive nature of healthcare services. Some form of regulation applies to virtually every part of the organizational process in healthcare. Even marketing and advertising in healthcare are regulated. Healthcare administrators must ensure that the organization complies with regulatory requirements and that appropriate policies and procedures are in place.
- Facility management
Medical facilities and equipment are valuable assets that must be properly accounted for and constantly maintained. A breakdown in equipment can lead to disastrous consequences for patients. Facility management involves overseeing the physical plant and maintaining equipment and technology properly.
- Patient care management
Patients are the lifeline of any healthcare organization. A business cannot survive without customers. Without patients, a proper healthcare institution cannot survive. Hence, the way patients are treated is key to the survival of the business. Healthcare administrators are responsible for ensuring that the organization provides high-quality patient care that meets or exceeds industry standards to attract new patients and retain old ones.
- Public relations and marketing
Healthcare institutions thrive on reputation, and reputation management falls within the purview of a healthcare administrator. Healthcare administrators are responsible for regulating the public outlook of the organization. They are responsible for managing the branding and marketing efforts of the organization. Healthcare administrators are also often the organization’s public face and must represent the organization positively to the public and the media.
What do you need to become a healthcare administrator?
Healthcare administration plays a crucial role in the healthcare industry. Healthcare administrators are responsible for managing the day-to-day operations of healthcare facilities, including hospitals, clinics, and nursing homes. They oversee budgets, coordinate staff, and ensure compliance with laws and regulations. If you are interested in becoming a healthcare administrator, here is what you need to know.
- Education and training
Most healthcare administrators hold a bachelor’s or master’s degree in healthcare administration, healthcare management, or a related field. A degree in business administration can also be helpful. These programs provide students with the knowledge and skills needed to manage healthcare organizations effectively. Coursework typically includes healthcare laws and regulations, finance and accounting, healthcare marketing, and leadership and management.
- Relevant experience
Employers prefer candidates who have relevant work experience. Entry-level positions such as administrative assistants or department managers can provide valuable experience in healthcare administration. Internships or volunteer work in healthcare organizations can also help to build experience and make connections in the industry.
- Strong communication and leadership skills
A great deal of healthcare administration is managing people. Healthcare administrators must have excellent communication skills to effectively interact with staff, patients, investors, and other stakeholders. They must also have strong leadership skills to manage teams, resolve conflicts, and make difficult decisions. Healthcare administrators must be able to prioritize tasks, work under pressure, and adapt to changing situations.
- Knowledge of healthcare laws and regulations
Healthcare administrators must thoroughly understand healthcare laws and regulations, including the laws guiding practitioners in patient care. They must ensure their organizations comply with these laws and regulations to avoid penalties and legal issues.
- Technology skills
Healthcare administrators must be familiar with the latest healthcare technologies, including electronic health records, telemedicine, and health information exchange. They must be able to use technology effectively to improve patient care, reduce costs, and enhance the overall efficiency of healthcare operations. On an individual level, they should also be able to navigate and use workplace tools that allow them to manage their team better.
- Networking and professional development
Networking is crucial in the healthcare industry. Healthcare administrators must attend conferences, join professional organizations, and build relationships with colleagues and industry leaders. Professional development opportunities such as continuing education courses and certifications can also help healthcare administrators stay current on the latest healthcare administration trends and technologies.
We started by asking the question, what is healthcare administration? We hope this blog post has shown that becoming a healthcare administrator requires a combination of education, experience, skills, and knowledge. If you want to pursue a career in healthcare administration, consider obtaining a degree in healthcare administration, gaining relevant work experience, and developing strong communication and leadership skills. With dedication and hard work, you can build a rewarding career in healthcare administration.
Healthcare administration vs. clinical health practice
Both healthcare administration and clinical health practice play crucial roles in the healthcare system, and both are essential for delivering high-quality patient care. Healthcare administrators work behind the scenes to ensure that healthcare facilities are run efficiently, while clinical health practitioners work directly with patients to diagnose and treat illnesses. Below are some key areas in which they differ:
- Education and training
The education and training required for healthcare administration and clinical health practice are different. Healthcare administrators typically have a bachelor’s or master’s degree in healthcare administration, business administration, or a related field. Some may also have a clinical background, such as nursing or medicine, but this is not always required.
Clinical health practitioners, on the other hand, have extensive clinical training in their respective fields, such as medicine, nursing, or physical therapy. They typically hold a professional degree, and the educational requirements vary based on the level of career growth you aspire to. Advanced positions in nursing, for example, might require extra years of training and advanced degrees such as a Master of Science in Nursing or a Doctor of Nursing Practice. Clinical professionals must also pass licensing exams to practice in their chosen country or state.
On the other hand, a healthcare administrator can make do with a bachelor’s degree and a master’s in health administration. A master’s in health administration is necessary to learn about strategies and operations in clinical institutions. Health administrators are not required to get licensed to practice.
Roles and responsibilities
Healthcare administrators have a broad range of responsibilities that center around managing and overseeing the operations of healthcare facilities. Some of their key roles and responsibilities include:
- Developing and implementing policies and procedures to ensure that healthcare facilities run smoothly and efficiently.
- Managing budgets and finances to ensure that healthcare facilities operate within their financial means.
- Recruiting, hiring, and training staff to ensure that healthcare facilities are appropriately staffed to meet patient needs.
- Ensuring that healthcare facilities comply with regulatory requirements and standards.
- Developing and implementing quality improvement initiatives to enhance the quality of patient care.
- Managing relationships with external stakeholders, such as insurance companies, government agencies, and community organizations.
- Analyzing data to identify trends and make informed decisions about healthcare facility operations.
- Participating in strategic planning to ensure that healthcare facilities meet the changing needs of patients and communities.
In contrast, clinical health practitioners are responsible for providing direct patient care and treatment. Their roles and responsibilities vary depending on their specific profession and area of practice.
For example, physicians diagnose and treat illnesses, prescribe medication, and perform medical procedures. Nurses provide and coordinate patient care, educate patients and families about health conditions, and advocate for patients. Meanwhile, physical therapists help patients with mobility issues regain strength and mobility through exercises and other treatments.
Generally, clinical practitioners educate patients and their family members about health conditions, diagnoses, treatments, and ongoing care. They are also responsible for promoting healthy lifestyles and habits among patients and offering support to patients and their families.
Skillset
The skills required for healthcare administration and clinical health practice also differ even though some skills are required in both professional paths. Healthcare administrators are required to lean into the following skills more:
- Leadership: Healthcare administrators need strong leadership skills to manage healthcare facilities and lead staff effectively.
- Communication: Effective communication is critical for healthcare administrators to work with other healthcare professionals, staff, and stakeholders, such as patients and their families.
- Financial management: Healthcare administrators must be knowledgeable about financial management, including budgeting, cost analysis, and revenue cycle management.
- Healthcare regulations: Healthcare administrators must know healthcare regulations and standards.
- Strategic planning: Healthcare administrators must be able to develop and implement long-term strategic plans for healthcare facilities.
- Project management: Healthcare administrators need project management skills to manage large-scale initiatives, such as implementing new healthcare technology or constructing new facilities.
Clinical health practitioners, on the other hand, must have most, if not all, of the following skills:
- Clinical knowledge: Clinical health practitioners must have a strong foundation in their respective fields, such as medicine, nursing, physical therapy, or occupational therapy.
- Critical thinking: Clinical health practitioners must have strong critical thinking skills to diagnose and treat complex health conditions effectively.
- Patient care: Clinical health practitioners must be able to provide compassionate and effective patient care, including understanding and responding to patients’ needs and concerns.
- Communication: Clinical health practitioners must have effective communication skills to interact effectively with patients and other healthcare professionals.
- Interpersonal skills: Clinical health practitioners must have good interpersonal skills to build and maintain relationships with patients and their families.
- Attention to detail: Clinical health practitioners must be detail-oriented to diagnose and treat health conditions accurately.
- Continuous learning: Clinical health practitioners must be willing to engage in ongoing learning and professional development to stay current with the latest research and advancements in their fields.
Work environment
Healthcare administrators work in different settings, including hospitals, public offices, health ministries, universities, and insurance companies. On the other hand, clinical professionals work in places where they can apply their clinical knowledge and treat patients.
The demands of both career paths may also differ accordingly. For example, clinical health practitioners have to work in high-stress environments due to the nature of their work, which may involve dealing with critically ill patients or performing emergency procedures. This is not a likely situation for healthcare administrators, although they may have periods of stress in their careers.
Career prospects
Clinical practitioners are generally in high demand, with the exodus of physicians from healthcare and an aging population. In particular, nurses are in exceptionally high demand. Employment for nurses is estimated to grow by 9% by 2030.
Consequently, demand for healthcare administrators will also grow as demand for healthcare services increases. The Bureau of Labour Statistics estimates that medical and health services manager jobs will grow by 28% between 2021 and 2031. That’s four times faster than 8%, the average rate for all professions, and equates to around 139,600 new jobs for healthcare administrators.
Conclusion
While healthcare administration and clinical health practice are different fields, they do overlap in some areas. For example, healthcare administrators may work closely with clinical health practitioners to develop and implement policies and procedures for patient care and ensure that healthcare facilities are staffed appropriately to provide quality care.
Overall, healthcare administration and clinical health practice are important components of the healthcare system, and both require unique skill sets and knowledge to succeed. Healthcare administrators focus on managing and overseeing healthcare facilities to ensure efficient operation, while clinical health practitioners work directly with patients to diagnose and treat illnesses.
Pursuing a career in healthcare administration can be a rewarding and fulfilling path for those who are passionate about improving the healthcare system and making a difference in people’s lives without wanting to get into clinical practice. As a healthcare administrator, you would have the opportunity to work behind the scenes to ensure that healthcare facilities operate efficiently and effectively, ultimately improving patient outcomes.
