Chapter 8: Healthcare Administration and Informatics
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. Administrators may make budgetary or scheduling decisions, may hire and fire employees of the organization, and may be responsible for collective bargaining over union employee contracts, pursuing credentialing of the organization with third party payers such as insurance companies, bringing in large donors and coordinating organizational sponsorship opportunities such as local public health events in the community.
Like the administrators in any large organization, healthcare administrators are typically salaried employees rather than hourly wage earners. Although they have a higher rate of pay, they may frequently be asked to work late or extended hours. This is something to take into account when deciding if this is the right career for you. There are many opportunities to be successful in this field, which we will discuss in section 8.6.1.
Some of the ways in which a healthcare administrator can contribute to patient care is by ensuring that a standard of care is followed by all healthcare providers under their direction. In addition to providing guidelines for practitioners, administrators can ensure that their facility is meeting licensing requirements and providing cost-effective care to the community. Working with physicians in the community who are seeking admitting privileges and maintaining the presence of the facility in the community through outreach programs and public health events are also ways in which the administrators can support the health of their community. Planning and developing events and programs to enhance patient healthcare is another aspect of a career in healthcare administration.
As a final note, a healthcare administrator is not the same as a office manager or clinical director who perform more of the day-to-day management tasks including reception, billing and scheduling as well as inventory and customer service duties. As the career path to administration requires a higher degree, this may be more of a long-term goal for someone like Alma from the chapter overview.
Possibilities in the Field of Healthcare Administration
There are a number of different opportunities in the field of healthcare administration. For positions such as chief nurse, degrees in the relevant fields (IT, HR, nursing, etc) can be supported with Master’s degrees in business or administration. Many of these positions will also allow employees to move up through the ranks and some companies will provide tuition assistance for achieving the appropriate business degree to advance your career.
In order to pursue a career in healthcare administration at a higher 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 is responsible for all of the nursing staff in a facility, whether a clinic or a hospital. Sometimes referred to as the chief nursing officer or CNO, this position would report directly to the Chief executive officer (CEO) or Chief Operating Officer (COO) of the hospital or facility.
Vice President
Most hospitals and some larger clinical practices will have vice presidents who supervise different areas of the practice 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 who is responsible for their division.
Chief Executive Positions: CEO/CFO/CTO/COO
Executives such as the chief executive officer, the Chief Financial Officer, the chief technology officer, or the chief operations officer are the top individuals controlling different components of hospital administration. They receive reports from vice presidents of their division and are responsible for making the large-scale decisions that affect the running of the hospital. They report to a board of directors on how they are fulfilling the organization’s mission and vision and on maintaining the business success of the hospital group.
President: Compared to the Chief Executive Officer, the president of a hospital may be more responsible for focusing on the daily operations compared to the CEO managing the general business vision and outlook. If an organization has both a CEO and a president, the president typically reports to the CEO and the CEO typically reports to the board of directors, who may represent shareholders or investors in the organization.
The people who manage and coordinate the operational, financial, and logistical aspects of healthcare organizations to ensure the efficient delivery of medical services and optimal patient care.
Also known as a practice manager. An individual who acts to ensure all business operations and administrative aspects of a clinical practice are completed appropriately. This person may be responsible for hiring and firing, training and supervising other administrative employees.
The Chief Nurse is the head of all the nursing staff in a facility, reporting directly to the CEO.