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The Business Side of Health Care: Health Service Administration


Health care is a growing industry, especially as advances in technology keep stretching the human life expectancy. Demand is constantly growing for physical therapy, in-home nursing, and assisted-living facilities. A health care administrator's role is to coordinate patients, doctors, and everyone in between. A health care administrator is responsible for budgetary decisions and staffing needs.

Health Care Administration Responsibilities

Working in health care administration means that you'll be responsible for patient records: medical histories and current health as well as billing, legal and insurance information. Maintaining patient confidentiality, updating databases, and keeping lots of information organized and current is the responsibility of the administrator. Also, health care administrators set forth policies on a large and small scale, for example, deciding where the group or department stands on patient rights, budgetary concerns, and personnel.

A health care administrator has a head for business. When people think about hospitals, they usually think of doctors and nurses. Health care administrators are the unsung heroes that keep up with the paperwork that helps the health care facility run smoothly. Hospitals, hospices, and assisted-living homes need an administration system to keep track of patients, treatments, staff, schedules, and occupied rooms. Without a qualified administrator to manage the flow of people in and out, a hospital would collapse into disorganization.

The business aspects of health care stretch from personnel management to financial analysis. Just like any business, health care facilities need qualified individuals to manage human resources, computer systems and databases, finance, and all other aspects of health care administration. Those involved with health care management deal with the "business" side of health care: staff and budget needs, organizational systems, databases, and accountability. They prepare reports on the allocation of funds or resources, improve efficiency by making sure patients are not kept waiting or denied service, and they often reorganize departments by streamlining processes and helping each employee do the best job they can. Private practice and small physician groups require the services of only one administrator or a small staff to keep operations running smoothly, while hospitals with large numbers of surgeons, physicians, and nurses could require an entire administration department.

Degrees in Health Administration

Earning a health care diploma can help put you on the right path towards a career in health care. Higher education, like a bachelor's degree or a master's of health service administration, can take you into the upper ranks in any hospital you choose. An education in health care services can also serve you well in health organizations that work for better work conditions or cleaner air. The health industry can stretch from hospital administration to environmental organizations and pharmaceutical companies.

Career Outlook for Health Care Administrators

Health care administrators can earn a broad range of salaries, most in the upper middle class income range. According to the US Department of Labor, the average salary of a medical or health services manager is nearly $70,000, although with lots of education and experience it's possible to earn more than $100,000 per year. Health care administrators working for the federal government have the highest salaries, while those in home health care services (private nursing, for example) earn slightly less. Regardless of your annual salary, a career in health care administration is satisfying to someone who has an interest in the business behind staying healthy.