When examining healthcare careers, it’s often easy to mistake the roles of a healthcare manager and healthcare administrator.
The two careers are similar in many ways, so much so that the terms have become interchangeable at many universities around the country. But in reality, these are two completely different positions with separate duties.
Duties
Generally, the difference is fairly simple. Healthcare managers are in charge of running business aspects at a healthcare facility, while administrators are charged with staffing it. Managers often specialize in areas such as healthcare policy, accounting and facility management, whereas an administrator might be more involved in public health, business or administrative areas, where direct patient contact is not as applicable.
The misunderstanding of the two terms can be costly. Some people might feel as though they are better suited to one career more than the other, but without proper knowledge of all the responsibilities, education requirements and job expectancy, they may come to realize that they’ve chosen the wrong field.
To avoid confusion, it’s important to understand the differences between a healthcare manager and healthcare administrator from the outset.
Education
For a healthcare manager, an MBA in healthcare management is typically required, but for healthcare administrators, a bachelor’s degree may be enough to find a job in the field. Despite this flexibility, most administrators hold an MHA or MBA with a concentration in healthcare.
Salary and Job Growth
Both of these positions boast a positive outlook when it comes to finding work. According to the U.S. Bureau of Labor Statistics, healthcare administration and management is projected to grow by 23% through 2022, faster than the national average job growth rate for all other occupations.
From a financial standpoint, healthcare administrators typically hold a slight edge over their manager counterparts, averaging $82,000 annually to the manager’s $79,000, according to the popular job board Indeed.com. However, these numbers may not take into account professionals who have obtained education higher than a bachelor’s degree.
Managers, however, also have an avenue to a larger income if they specialize in health informatics, the business of managing information flow within a facility and making sure that its computer systems are working properly. Those who specialize in this area of management can earn an average annual salary of $89,000.
Careers in Healthcare Management
Examples of entry-level positions in healthcare management may include human resources, marketing, public affairs, nursing administration and patient care services. Depending on education and experience, healthcare managers may work in healthcare settings such as:
- Hospitals
- Rehabilitation centers
- Mental health organizations
- Research institutions
- Universities
- Nursing homes
- Health insurance organizations
Healthcare Administration Work Environments
Administrators may also be able to find work in all of the previously mentioned work settings, as well as in areas like:
- Home healthcare
- Operational management
- Director of healthcare services
- Community relations manager
In addition, jobs which involve departmental budgets, hiring and scheduling staff and operating specific departments within a healthcare facility may be well-suited to a healthcare administrator’s background and education.
Why Is It So Confusing?
The confusion between the two positions may arise from the fact that the two are specialized fields and use similar skill sets. Both positions require a solid foundation of leadership and interpersonal skills, an understanding of best business practices and a deep knowledge of regulations within the healthcare industry.
For smaller facilities, the two positions are often merged into one as it is typically more cost effective to have one individual address the needs of both roles. In larger facilities, the healthcare manager may be tasked with the big picture of how the entire facility operates, while a cast of administrators oversee each department.
