Health Care Management vs. Health Care Administration: Differences and Similarities

Prospective students interested in a business-related career in the health care industry may consider various types of degree options, such as the online Master of Business Administration (MBA) in Healthcare Management program from Florida Institute of Technology. For those looking to earn a degree and enter the field, it is important to consider the nuanced differences between the focus of this program —health care management — and others that emphasize health care administration studies.

Medical career terminology can often be confusing. Certain terms are used interchangeably, leading to misconceptions about a particular program of study or profession. The confusion of career terminology is also not unique to the medical field. For instance, many people are unaware of the difference between criminology and criminal justice, or computer information systems and computer science. The same holds true for health care administration and health care management.

Is Health Care Management the Same as Health Care Administration?

The public often assumes these terms and fields are very similar, possibly even identical. However, there are differences between health care management and health care administration, both in the practice and the study of the fields.

While both fields obviously deal with health care and leadership, they each possess unique characteristics. These differentiations in characteristics and components form the foundation of each specific educational and career path.

What Is Health Care Management?

Health care management typically refers to managing all business aspects of a health care facility or organization. According to the U.S. Bureau of Labor Statistics (BLS), a bachelor’s degree is the minimum education requirement to qualify for health care management positions, but many employers prefer or require an advanced degree for leadership roles, hospitals with Magnet designation being prime examples.

This is a rapidly expanding field that shows no signs of slowing down. In fact, BLS reports that this occupational area is among the fastest-growing professional fields in the country. As the health care industry gets more complex, more facilities seek qualified individuals with the business expertise to manage their organizations. Given this, an advanced business degree with a focus on health care management can provide the ideal educational background.

Education and Careers in Health Care Management

An MBA in health care management emphasizes coursework on the business of health care, standards of patient care, best practices, organizational policies and budget management. With an MBA, a health care management professional has the qualifications and background to form a business plan tailored to a company’s specific professional goals and interests. These professionals gain valuable experience through the practice of modern theories of effective negotiation, management and leadership. They develop the aptitude to make critical decisions through effective problem-solving.

Careers in health care management vary widely, depending on education and experience. Job options may include executive positions in the following settings:

  • Hospitals
  • Mental health organizations
  • Rehabilitation centers
  • Universities and research institutions
  • Health insurance organizations
  • Nursing homes

Examples of entry-level health care management job areas might include human resources, marketing and public affairs, medical staff relations, nursing administration, and patient care services. MBA graduates generally pursue work in mid- to upper-management positions as well as executive leadership roles.

What Is Health Care Administration?

Health care administration may overlap with health care management but generally relates more to the management of staff associated with a particular department of health care. Coursework in this area focuses on developing confidence in analytical and decisions-making skills to navigate the complex and dynamic environments of all kinds of health care facilities.

Health care administration professionals may be responsible for tasks that include meeting regulatory requirements while supporting and encouraging employees. They also provide compassionate and expert care and administrative services to patients and their families while managing finances.

Direct patient care experience may be an asset to this profession, but many health care administrators specialize in public health, business or other administrative areas where direct patient contact is not applicable. It is critical that health care administration professionals are competent in handling finances, hiring the best staff, and effectively responding to an ever-changing and challenging regulatory environment.

Health care administration professionals may come from a medical background, though business skills are an asset. Their educational background also varies. While the field differs from health care management, earning an MBA in health care management still provides essential skills to handle administration-oriented job responsibilities. Careers in health care administration may include:

  • Home health care / operations management
  • VP of health care management services
  • Community relations manager
  • Director of health care services

Health Care Administration vs. Health Care Management: Deciding on a Path

Health care management and health care administration careers both require the ability and commitment to put patients and their families first while still meeting the complicated regulations and financial demands of our nation’s health care system. As one of the most highly regulated industries in the U.S., health care demands well-trained and effective professionals who are ready to work toward creating healthy environments and successful organizations.

Each type of professional supports staff, increases patient satisfaction and moves their health care facility into a cost-effective direction. There are nuanced differences between the two roles, mostly concerning an overall business management emphasis versus a department-oriented supervisory and administrative focus. However, comprehensive coursework in Florida Tech’s MBA in healthcare management online program will prepare graduates to excel in either role.

Learn more about Florida Tech’s online MBA in healthcare management program.

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