Healthcare administration is the management of the business and operations of hospitals, clinics, nursing homes, and other health organizations. That includes budgets, staffing, regulatory compliance, and health information systems. Administrators handle this work so that clinicians can focus on patients.
The Bureau of Labor Statistics (BLS) groups these professionals as medical and health services managers. They held about 640,400 jobs in 2025 and earned a median salary of $123,860. Employment is projected to grow 24% from 2025 to 2035, compared with 3% for all occupations. That works out to about 62,300 openings each year.
History and Evolution
Healthcare administration became a formal profession in the early 20th century. A milestone came in 1933 with the founding of the American College of Hospital Administrators, now the American College of Healthcare Executives. Today the field is shaped by an aging population, more complex regulations, and the growth of electronic health records and telehealth.
Healthcare Administration Roles and Responsibilities
What is the role of a healthcare administrator, and what are some of their typical tasks or duties? While doctors, surgeons, and nurses examine and treat patients, healthcare administrators handle the “behind-the-scenes” tasks and decisions that enable hospitals, clinics, and similar organizations to operate successfully; for example, setting hospital policies and making budgetary decisions.
Numerous careers fall within the scope of health administration, meaning that specific tasks and duties can vary significantly. With that in mind, here are a few examples of the types of responsibilities that health administration professionals may be expected to handle:
- Coordinate with departments like HR and accounting to optimize efficiency
- Create employee schedules and handle other staffing-related issues
- Lead and oversee departments and staff members
- Manage medical facilities (or specific departments within larger organizations)
- Monitor and replenish inventory, such as ordering more medical equipment before stocks run out or become too low
- Taking steps to ensure compliance with state and federal regulations, such as the Health Insurance Portability and Accountability Act of 1996 (HIPAA)
Want to take a deeper dive into this topic? Learn more about the role of healthcare administrators and how to become one or explore some essential hard and soft skills for a successful career in health administration.
Where Do Healthcare Administrators Work?
According to BLS, the largest employers are hospitals (28% of these jobs), physician offices (13%), nursing and residential care facilities (9%), outpatient care centers (7%), and government (7%). Others work for insurers, pharmaceutical companies, community health centers, and nonprofits.
Career Paths for a Degree in Healthcare Administration
BLS gives a range for medical and health services managers: the lowest 10% earn under $73,390 and the top 10% earn over $224,340. Pay also depends on the setting. The 2025 medians are $136,130 in government, $133,580 in hospitals, $116,060 in outpatient care, $105,770 in physician offices, and $100,520 in nursing and residential care. Common roles include:
Hospital Administration and Management
A hospital manager is responsible for developing, overseeing, and optimizing all aspects of a hospital’s operations and strategies, from medical research and staff performance to patient records and budgeting issues. Hospital administrators provide additional support and oversight, such as setting operational goals and training staff members.
Telehealth Program Manager
Run virtual care programs. The rise of telemedicine has created numerous job openings and career opportunities since 2020 and the COVID-19 pandemic. The BLS does not currently provide salary information about this position.
Clinical Manager
Runs a single department, such as intensive care or physical therapy.
Human Resources Manager
A Human Resources (HR) Manager oversees an organization’s human resources department, manages employee relations and ensures a company’s workforce operates effectively and efficiently. The skills transfer to general management roles. According to the U.S. Bureau of Labor Statistics 2025 medians are $149,280 for human resources managers.
Finance Manager in Healthcare
Their responsibilities would include budgeting, financial analysis, risk management, and reporting. According to the (BLS) the average median salary is $166,570 for financial managers.
Nursing Home Administrator
Manages admissions, facilities, and resident care. Every state requires these administrators to be licensed.
Health Information Manager
Keeps patient records accurate, secure, and HIPAA-compliant. Link to the MS in Health Informatics.
Education Requirements for a Healthcare Administrator
The education requirements that will impact your job search will depend on the type of healthcare administration career you intend to pursue and the employer’s hiring preferences. For example, an employer might specify that bachelor’s degrees are acceptable, but that master’s or even doctoral degrees are preferred.
However, the minimum education required in this field is typically a bachelor’s degree. Most bachelor’s degree programs require four years to complete, or the equivalent to 180 quarter units. Therefore, completing online coursework can be a highly effective strategy for students looking to accelerate their learning and graduate sooner.
Earn Your Healthcare Administration Degree at National University
Explore a new career, accelerate your professional development, and make a positive difference in public health outcomes in your community. Pursue your degree in healthcare administration at National University, which offers online and on-campus programs for graduates, undergraduates, and transfer students.
Bachelor of Science in Healthcare Administration
As discussed throughout this article, most employers require a bachelor’s degree for applicants of healthcare-related positions. Earning a bachelor’s degree also increases earning potential while providing a robust foundation for students who plan to pursue an advanced degree.
The Bachelor of Science in Healthcare Administration at National University is designed to prepare students for leadership and administrative roles within the healthcare industry. Students who enroll in our undergraduate healthcare administration program complete industry-current coursework in topics like healthcare marketing, healthcare economics, issues and trends in healthcare, and health informatics
Master’s Degree in Healthcare Administration
Earning a master’s degree has numerous benefits, like increasing your earning potential, creating professional networking opportunities, providing opportunities to sharpen your skills and advance your learning, and empowering you to advance in your career. The Master’s Degree in Healthcare Administration (MHA) prepares graduates with the conceptual and analytical skills necessary to overcome the greatest management challenges confronting healthcare systems today.
The MHA is built around a rigorous, career-focused curriculum that covers the most pressing topics facing today’s healthcare industry. Coursework includes biostatistics, epidemiology, healthcare law, and public health research methods, culminating in an internship and capstone project.
You may also be interested in the Doctor of Health Administration.
Learn More
Learn more about healthcare programs at National University, or talk to an admissions counselor about how you can apply today.
Frequently Asked Questions
Most healthcare administration jobs require a bachelor’s degree, and many prefer a master’s degree. It generally takes four years to complete an undergraduate degree, with an additional two to four years required for most master’s degree programs. This means it typically takes anywhere from four to eight years to obtain the necessary education.
No. Nurses receive clinical training to provide hands-on patient care and treatment, which is not part of a healthcare administrator’s role. For a comprehensive overview of nursing careers, browse our guide to 39 types of nurses or explore our accredited nursing programs.
BLS reports a median of $123,860 (May 2025) for medical and health services managers, the occupation that includes healthcare administrators.
