What Is Healthcare Management?

Healthcare management is a field that involves directing and leading health organizations. Health managers and administrators focus on improving patient care, along with ensuring the financial health of the organization.

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Read time 8 minutes

GCE Editorial Team

Published on Sep 15, 2025

In This Article

Overview
Difference Between Healthcare Management and Healthcare Administration
Why Should I Pursue a Career in Healthcare Management?
What Does a Healthcare Manager Do?
Where Do Healthcare Management Professionals Work?
What Are Examples of a Healthcare Management Career?
How To Pursue a Career in Hospital Management
Earn Your Undergraduate Healthcare Administration Degree
Do You Need a Master’s Degree To Work in Healthcare Management?
Healthcare Management Skills

In This Article

Healthcare management is a leadership function that involves the organization and coordination of healthcare services, providers and facilities. The goal of healthcare management is to deliver high-quality patient care while ensuring fiscal viability. Those who work as health care managers must also ensure compliance with all applicable regulatory standards.

The healthcare industry is filled with qualified professionals who want to make a difference, and you may be attracted to this industry because you feel called upon to help others. However, you may not necessarily wish to provide direct patient care as a nurse or doctor.

Instead, you might consider the role of a healthcare manager. There are quite a few options for aspiring professionals who want to break into the healthcare field. Explore this guide to careers in healthcare management to learn more and begin weighing your options.

Difference Between Healthcare Management and Healthcare Administration

Healthcare management and healthcare administration are interrelated disciplines, but they serve distinct functions within the healthcare system. While they share common goals and occasionally intersect, their responsibilities rarely overlap as each focuses on different aspects of organizational leadership and operations.

Healthcare Management

Healthcare managers focus on the day-to-day operations within specific units or teams. They supervise staff, coordinate schedules, implement procedures and ensure that patient care standards are met. Managers are typically more hands-on, working directly with clinical teams to meet immediate operational objectives. In comparison to administration, there are also numerous specialty roles, such as a unit supervisor, department manager or service line director.¹

Healthcare Administration

Healthcare administrators, on the other hand, are responsible for the strategic and operational oversight of medical facilities or departments. Their duties often include budgeting, resource allocation, policy development, compliance and long-term planning to ensure that healthcare systems run efficiently. Administrators operate at a higher strategic level, whereas managers are more involved in frontline execution.¹

Why Should I Pursue a Career in Healthcare Management?

Healthcare is a fast-growing career field in the United States.² There are many reasons to pursue the role of a healthcare manager, but here are the top three:

1. Positive Job Outlook

The U.S. Bureau of Labor Statistics (BLS) estimates job growth for medical and health services managers to increase by 29% from 2023 to 2033, much faster than average for all professions. At this rate of growth, employers are expected to hire about 160,600 new medical and health services managers during this time period.²

Additionally, medical and health services managers had a median annual wage of $117,960 in May 2024, according to the BLS.³

2. Room for Growth

As a qualified professional, a career in healthcare management or healthcare administration can offer you a variety of pathways based on your career goals and where you are in your journey. Whether you are just getting your foot in the door as an assistant or technician, seeking a career move or pursuing advancement, there are healthcare careers at every level.⁴

Please review your state’s and prospective employer’s requirements for healthcare management and administration positions, as they may vary.

3. Your Education May Take You in Many Directions

If you’re hoping for a career full of possibilities for specialization, then healthcare management may be right for you. With a firm foundation in healthcare administration competencies, individuals may go on to pursue positions in medical records, patient services, office management, healthcare consulting or human resources.⁴ Though, it’s important to note that many of these specialty areas may require additional education.

What Does a Healthcare Manager Do?

Now that you’re familiar with the top reasons for pursuing a career in healthcare management, it’s time to take a closer look at the specifics of the field. Healthcare managers — also known as health services managers, administrators or executives — are responsible for planning, coordinating and overseeing the daily operations of healthcare facilities and services. Some healthcare managers are responsible for overseeing an entire facility, whereas others focus on just one department or clinical area.

Is healthcare management a good career? It certainly can be, as it provides professionals the opportunity to make a positive impact on the healthcare environment. The specific tasks that these professionals perform during a typical workday are heavily dependent on the needs of the facility and the specific position.

In general, however, if you choose a career in healthcare management, you might do any of the following:⁵

Recruit and supervise staff members, coordinate ongoing training initiatives and develop work schedules
Manage the facility’s finances (including patient fees) and develop departmental or facility-wide budgets
Develop the mission and values of the facility, as well as departmental goals.
Identify ways of improving the quality of patient care, as well as the efficiency and profitability of the healthcare facility
Act as the public face of the healthcare organization and represent it on governing boards or during community meetings
Maintain accurate records regarding the facility’s healthcare services

It’s also not unusual for a health services manager to specialize. For example, some may oversee a specific department in a hospital, such as orthopedic surgery or physical therapy. Others might work across departments in an area such as health information technology or finance.

Where Do Healthcare Management Professionals Work?

One way to narrow down your career choices within this field is to think about the specific type of healthcare setting you might want to work in. State, local and private hospitals are the largest employers of managers and administrators. Other professionals work in the offices of physicians or for outpatient care centers.⁶

There are plenty of other specialty areas to consider, though many require additional education by way of certification to work as a manager or administrator. Some potential specialty options include the following:^4,6

Nursing homes
Assisted living communities
Public health agencies and programs
Health information organizations
Pharmaceuticals development or sales companies
Health insurance companies
Laboratories
Nonprofit organizations

Your healthcare career may take you in any number of directions. Regardless of which healthcare setting you choose, you can be confident that your work has the potential to make a positive difference in the lives of patients and healthcare staff members alike.

What Are Examples of a Healthcare Management Career?

If a career in healthcare management is in your future, you should give some thought to the specific type of job you’d like to pursue. Note that there are many options available within the healthcare management and administration field. If you’d like to apply to an executive-level position at a major hospital later in your career, you may want to consider returning to school to earn a master’s degree and have the opportunity to examine advanced healthcare management skills.⁴

Below are examples of healthcare management careers:

Medical and Health Services Manager

Medical and health services managers are responsible for planning, directing and overseeing the business side of a healthcare facility or system. They ensure that facilities and activities are in compliance with regulations, and they may work to improve resource allocation for different departments and staff. They establish and implement policies and provide oversight.

General and Operations Manager

In healthcare, general and operations managers focus on the daily operations of the facility. They perform administrative duties, such as ensuring that best practices are adhered to and troubleshooting compliance problems. They may keep inventory of medical equipment and supplies, oversee patient billing and help staff members achieve departmental and facility-wide goals.

Related Article: How To Become a CEO

Chief Executives

A chief executive, or CEO, is at the top of a healthcare organization. They are responsible for providing broad oversight to the mission, objectives and operations of the company. CEOs may handle a varied range of tasks that include meeting with stakeholders, liaising with departmental heads and administrators, adjusting operational procedures as needed and implementing hospital-wide protocols to ensure compliance with applicable standards.

How To Pursue a Career in Hospital Management

You can begin preparing for a career in healthcare management as early as high school. Although healthcare managers and administrators do not provide patient care, it’s helpful for them to have a basic understanding of healthcare and nursing topics.⁷ If your high school offers any introductory courses to health care, business, or related topics, these would be good classes for you to take.

Leadership skills are also important.⁶ Look for extracurricular activities or sports teams to join, and begin actively working on cultivating your leadership skills. Lastly, consider volunteering for positions in healthcare settings, such as a local nursing home or children’s hospital.

As you approach your high school graduation date, you’ll need to carefully consider your options for your postsecondary education. Most health services management positions require at least a bachelor’s degree. Earning a master’s degree may not be strictly necessary, but it may help you position yourself for possible career advancement in the future.⁷

Earn Your Undergraduate Healthcare Administration Degree

If you know that you want to work in healthcare management, you should look for a bachelor’s degree program in healthcare management or administration.⁷ A healthcare management degree can teach competencies in key areas such as project management and leadership with a strong focus on the healthcare field.

The specific curriculum will vary from one school to the next, but in general, you can expect to examine topics such as the following:

The issues and challenges of the modern regulatory environment, with a look at compliance issues regarding accrediting bodies
The factors that influence healthcare quality, cost and access, such as social priorities, political trends and economic issues
Ethical theories and decision-making models that guide the resolution of ethical dilemmas in the modern healthcare system
Strategic planning in healthcare settings
The role of healthcare management information systems (health technology) in modern healthcare systems

It is also recommended for you to gain some practical experience during your time as a student. Take the initiative to visit your student services department to inquire about relevant internship opportunities. An internship in the healthcare field may enable you to begin developing your professional network. You may also acquire some key contacts who might provide you with letters of reference.

Do You Need a Master’s Degree To Work in Healthcare Management?

You may find that healthcare employers prefer or require their managers to have a master’s degree. If you aspire to a higher-level executive position at a large hospital, consider a graduate degree.^4,7

There are three main options for your graduate education. You may choose to earn a Master of Science in Health Administration, a Master of Business Administration (MBA) with an Emphasis on Health Systems Management or a Master of Public Administration (MPA) with an Emphasis in Health Care Management.

An MBA degree would focus more on general business competencies with a specialization in healthcare management. In contrast, an MS or MPA with an emphasis on healthcare management or administration would focus more narrowly on the manager’s role and responsibilities in a healthcare setting.

Healthcare Management Skills

Along with competencies in business management and health services, healthcare management professionals can benefit from having excellent leadership skills. They need to be able to motivate and lead staff members, and to create a positive, productive work culture.⁷

Other skills and characteristics needed in this role include:⁷

Analytical reasoning
Communication skills
Attention to detail
Technology competencies

Grand Canyon University’s Bachelor of Science in Health Care Administration degree teaches key competencies in the field of healthcare administration. Working professionals who are interested in earning a graduate degree might consider earning the MPA with an Emphasis in Health Care Management, MS in Health Administration or MBA with an Emphasis in Health Systems Management.

If you’d like to learn more about this or the other programs offered by GCU’s College of Nursing and Health Care Professions, complete the form on this page.

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Banner Health. (n.d.) Executive Leadership and Departmental Roles. Banner Health.
COVID-19 has adversely affected the global economy and data from 2020 to 2023 may be atypical compared to prior years. Accordingly, data shown is effective September 2024, which can be found here: U.S. Bureau of Labor Statistics, Occupational Outlook Handbook, Medical and Health Services Managers, retrieved July 18, 2025.
The earnings referenced were reported by the U.S. Bureau of Labor Statistics (BLS), Medical and Health Services Managers as of May 2023, retrieved July 18, 2025. Due to COVID-19, data from 2020 to 2023 may be atypical compared to prior years. BLS calculates the median using salaries of workers nationwide with varying levels of education and experience. It does not reflect the earnings of GCU graduates as Medical and Health Services Managers, nor does it reflect the earnings of workers in one city or region of the country or a typical entry-level salary. Median income is the statistical midpoint for the range of salaries in a specific occupation. It represents what you would earn if you were paid more money than half the workers in an occupation, and less than half the workers in an occupation. It may give you a basis to estimate what you might earn at some point if you enter this career. Grand Canyon University can make no guarantees on individual graduates’ salaries. Your employability will be determined by numerous factors over which GCU has no control, such as the employer the graduate chooses to apply to, the graduate’s experience level, individual characteristics, skills, etc. against a pool of candidates.
Oppenheimer, T. (2025, June 12). What Jobs Can You Get With a Healthcare Administration Degree? Nurse.org. Retrieved July 18, 2025.
U.S. Bureau of Labor Statistics. (2025, April 18). What Medical and Health Services Managers Do. Occupational Outlook Handbook. Retrieved July 18, 2025.
U.S. Bureau of Labor Statistics. (2025, April 18). Medical and Health Services Managers: Work Environment. Occupational Outlook Handbook. Retrieved July 18, 2025.
U.S. Bureau of Labor Statistics. (2025, April 18). How to Become a Medical or Health Services Manager. Occupational Outlook Handbook. Retrieved July 18, 2025.

Approved and verified accurate by the Associate Dean of the College of Nursing and Healthcare Professions on Sept. 2, 2025.

The views and opinions expressed in this article are those of the author’s and do not necessarily reflect the official policy or position of Grand Canyon University. Any sources cited were accurate as of the publish date.