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Home Why Is Healthcare Administration Important? - Everything You Need To Know

Why Is Healthcare Administration Important? - Everything You Need To Know

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Why Is Healthcare Administration Important - Everything You Need To Know

Every time you think about a medical facility, I bet the first thing you think of is the doctors and nurses that are scattered amongst the joint, fixing problems. What if I told you that this is precisely why healthcare administration is so important? It’s important because these people are the puppet masters of everything happening on the hospital floor. They provide support to workers, process insurance claims, train new employees, and create new programs that provide information and resources like PowerPoints (ppts) for the public to access.

Key Aspects of Health Administration and Management

The first key aspect is that they keep costs down. For instance, imagine you’re sick with something really nasty, and you don’t have health insurance. You’re still going to have to go to the hospital, but the hospital administrators work with the patient to lower their overall costs out of pocket. If a patient doesn’t pay for the medical care they have received, the hospital might have to pass the costs out of necessity to other patients. Administrators take charge and also work with insurers to find ways to cover the entire cost of all services provided. This is the role of administration in patient care.


The second aspect is that they handle many of the things that a typical manager would do. They advertise open positions after deciding what those positions require. They interview any potential employees who apply for those roles. Administrators on a daily basis must find the best workers who can handle the needs of the organization and patients.

The third aspect is that they help the public. Some assume healthcare administrators work with employees in the offices of a facility, but they also provide the necessary care to the general public. They coordinate hospitals special programs like outreach programs, these inform the public as to why they have an increased risk of suffering from specific medical conditions and tell them how they can lower their overall risks. Hospitals tend to offer these programs because they can help the public stay healthy and reduce the risk that they might need medical attention, therefore, keeping healthcare costs low.

The final aspect of this is that they maintain daily operations. Doctors and nurses primarily focus on the medical needs of the patients in their care. They take vital signs, order and perform tests, administer treatments that patients need. These facilities just straight up can’t operate without administrators who are behind the curtain. They make sure the facility operates within its budget and others negotiate with vendors and suppliers to get better pricing on anything that benefits the patients and the organization. 

What does a Healthcare Administrator do on a daily basis?

To break it down for those of you who don’t like to read, here’s the TLDR:

  • Coordinate hospitals special programs
  • Inform the public of health risks
  • Maintain daily healthcare facility operations
  • Work with budgets to negotiate best outcomes for patients
  • Deal with insurance to settle debts for patients

Common Questions about Healthcare Administration Jobs:

How much is the Healthcare Administration salary in Canada?

According to Payscale, they make $63,298 on average annually, with a $8,844 bonus! This is different from the United States because of healthcare climate cost differences.

How much is the Healthcare Administration salary in the United States?

According to BLS, administrators earned a median annual salary of more than $93,000 per year! That’s double what the annual household income in the United States is.

How much does a Health Services Administrator make in Australia?

In Australia, people in this career typically bring in just over $32 per hour.

What do Healthcare Administrators wear?

This depends wholly on the setting. If you are in an office setting, you will likely be wearing business casual clothing on normal days, and business professional clothing when you have meetings. If you’re on the floor at a hospital, you will need to wear a lab coat and scrubs, depending on the circumstances.


What skills do you need to work in Healthcare Administration?

  • Communication
  • Teamwork
  • Planning Ability
  • Mentoring
  • Problem-solving
  • Business Administration and Operations
  • Patient Care
  • Data Analysis
  • Budgeting
  • Quality assurance and control

These base skills are something you should build up if you’re asking yourself: “Would I be a good healthcare administrator?”. Running a healthcare facility isn’t easy. It takes a supreme mix of business expertise, management ability, and a foundational understanding of how your respective country’s healthcare system operates. This leads us to our next question, which largely incorporates acquiring those skills.

What is a Healthcare Administration Degree?

A degree in this field is typically considered a good major. There is massive demand for this position and this is an excellent choice for those who want to work in a business or managerial capacity within a healthcare setting.

You will likely need an undergraduate/bachelor’s in one of the following:

  • Bachelor of Science Degree in Healthcare Administration
  • Bachelor of Science Degree in Health Information Management
  • Bachelor of Science Degree in Nursing
  • Bachelor of Science Degree in Public Health Administration
  • Bachelor of Science Degree in Business Administration

Followed up by the following master’s:

  • Master of Healthcare Administration (MHA)
  • Master of Business Administration (MBA)
  • Master of Public Health (MPH)

Is a BS in Healthcare Administration worth it?

The short answer is yes. The long answer is, if you’re willing to put in the work for it. Careers in this field pay much more than most careers you will be able to attain from just a bachelor’s degree. When looking at the long-term salary adjustments, obtaining the master’s degree in this field makes it even more worthwhile.

What are the highest paying healthcare administration jobs?

  • Health Information Manager
  • Healthcare Consultant
  • Hospital Administrator
  • Pharmaceutical Product Manager
  • Hospital CFO

What are the entry level healthcare administration jobs?

  • Medical Office Administrator
  • Health Information Officer
  • Medical Executive Assistant
  • Healthcare Human Resources Manager
  • Social and Community Service Manager

Do Healthcare Administrators work long hours?

Typically, they work an average of 40 hours per week. There are unlikely circumstances where longer hours may be necessary; since many facilities are open 24 hours per day. Managers may be called to fix potential issues that arise during any hour.

I hope that this full guide on healthcare administration answered all your questions and gave you exactly what you were looking for. If you’re looking for your next job, make sure to sign up on our job board, we have plenty of healthcare administration positions posted from only the best organizations.

Why Is Healthcare Administration Important? - Everything You Need To Know
Jake Tilk

Jake is the Digital Marketing Manager for OptyConnect and Healthcare Consultant. He holds a B.B.A. in Marketing with a minor in Business from Western Michigan University and has a certification in Software Development.