7.6 Healthcare Administration
Katie Baker
Healthcare administration includes careers where people manage and coordinate the operational, financial, and logistical aspects of healthcare organizations to ensure the efficient delivery of medical services and optimal patient care. Healthcare administrators are often responsible for budget decisions, employee management (including hiring and firing), contract negotiations with unionized employees, obtaining credentialing from third-party payers such as insurance companies, and securing sponsorships or large donors for organizational initiatives. They also play an important role in coordinating community events, such as local public health events.
Healthcare administrators are typically salaried employees rather than hourly wage earners. While the position offers a higher salary, it may also require long or extended working hours, which is an important consideration when pursuing this career. However, the field offers a broad range of career opportunities, as discussed below.
Contributions to Patient Care
Healthcare administrators directly contribute to patient care by ensuring that a standard of care is followed by all healthcare providers under their direction. In addition, administrators ensure that their facility is meeting licensing requirements and providing cost-effective care to the community.
Administrators also work closely with community physicians seeking admitting privileges and help maintain the facility’s visibility and involvement in the community. By organizing public health events and outreach programs, administrators support the health of their community. They may also be involved in planning and developing programs aimed at enhancing patient healthcare.
It is important to distinguish healthcare administrators from office managers or clinical directors, who perform more of the day-to-day management tasks, such as reception, billing, scheduling, inventory, and customer service. Because the career path to administration requires a higher degree, it may be more of a long-term goal for someone like Alma from the chapter overview.
Career Opportunities in Healthcare Administration
Healthcare administration offers a variety of career opportunities. For positions such as chief nurse, degrees in the relevant fields (e.g., IT, HR, and nursing) can be supported with master’s degrees in business or administration. Many positions also allow employees to move up through the ranks, and some companies provide tuition assistance for achieving the appropriate business degree for advancement.
To pursue a career in healthcare administration at an executive level, individuals must earn either a master’s degree or PhD in healthcare or hospital administration. Many successful individuals in this field also hold a master’s of business administration (MBA). These positions are more about administration than healthcare, so a strong background in healthcare is not always required.
Chief Nurse
The chief nurse, sometimes referred to as the chief nursing officer (CNO), is responsible for all nursing staff in a healthcare facility, whether it is a clinic or a hospital. This position reports directly to the chief executive officer (CEO) or chief operating officer (COO) of the facility.
Vice President
Most hospitals and some larger clinical practices have vice presidents who oversee various areas of the organization, including human resources, patient services, and information technology. This position typically receives input from department directors or heads and reports directly to the chief executive responsible for their division.
Chief Executive Positions: CEO/CFO/CTO/COO
Executives such as the chief executive officer (CEO), chief financial officer (CFO), chief technology officer, and chief operations officer (COO) oversee different components of hospital administration. They receive reports from the vice presidents of their respective divisions and are responsible for making high-level decisions that impact the hospital’s operations. These executives report to a board of directors on how they are fulfilling the organization’s mission and vision, as well as on maintaining the business success of the hospital group.
President
While the CEO manages the broader business vision and strategy, the president of a hospital is typically more focused on the daily operations. When both positions are present in an organization, the president usually reports to the CEO, who in turn reports to the board of directors, which may represent shareholders or investors.
Professionalism in healthcare includes being service-oriented. In this context, workplace team members, vendors, patients/clients, and their families or support people are all considered the "customers" you will serve. Think about how you like to be treated when you are relying on someone to assist you. Whether you're buying something, ordering food, or requesting a prescription from a healthcare provider, you expect to be treated with respect. Similarly, patients depend on healthcare workers to care for them during their most vulnerable moments. By demonstrating professionalism, healthcare workers can build trust, which can enhance patient outcomes and ensure continued patient loyalty to the organization.
Consider a scenario where you are a patient or customer. Imagine arriving at a place of business and approaching the front desk to speak with a staff member. The staff appears busy and does not acknowledge you as you wait. This lack of attention may frustrate you, and you might even feel like leaving. Feeling overlooked and ignored is never the goal. When staff members make eye contact, welcome you warmly, and prioritize your needs, it helps ease any stress and contributes to a positive experience in this vulnerable setting.
This focus on patient experience is known as a service-oriented approach. Have you ever entered a business where employees are talking about personal matters, such as their dating life, instead of focusing on customers? This behavior is unprofessional, as it distracts from serving others and the needs of the organization. If employees are on a break, they should step away from the service area. While it’s acceptable to converse with colleagues, when a customer arrives, the focus should shift to work duties and the customers' needs. Regardless of one's role in the organization, everyone should contribute to service, whether it’s by smiling at people as they arrive, helping patients find their way, or opening the door for someone carrying heavy items.
In healthcare, we will sometimes have to care for individuals whose behaviors or lifestyles conflict with our personal values or beliefs. The ethical principle of justice dictates that, despite any personal feelings, every patient is entitled to healthcare. For example, even if a person has committed violence toward another, they still deserve the care and attention we provide. It can be difficult, but it’s essential to leave personal opinions and emotions at the door to deliver unbiased, compassionate care.
