How to become a healthcare manager

Labor market trends look bright for healthcare managers. An aging population, technological change in the health services industry, and high retirement rates are poised to drive huge levels of job growth in the near future.

Take advantage of projected growth in the industry: Explore below to learn how to become a healthcare manager.

What is a healthcare manager?

Healthcare managers work behind the scenes in hospitals, clinics, and long-term care facilities to optimize both quality of care and resource efficiency. They create budgets, monitor spending, ensure compliance, and prepare operational reports.

In their roles, healthcare managers interact with institutional executives, other administrators, frontline medical personnel, and insurance providers.

Steps to become a healthcare manager

When exploring how to become a healthcare manager, note that many professionals follow one of two paths. The first involves direct training for the role through targeted education and career advancement. The second involves transitioning into administration after working in patient care.

You can follow the pathway that applies to you. Use the insights below to build your career development plan:

Step 1: Earn a bachelor's degree in healthcare administration or a related field

A bachelor's degree in healthcare administration, healthcare management, or another related field can set you up for success in the field. Relevant alternative college majors include:

• Business administration (with a healthcare management concentration if available)
• Nursing
• Public health

Bachelor's programs typically take about four academic years to complete. They build solid knowledge foundations in your chosen major, positioning you for entry-level roles or advanced education at the graduate level.

Find out more by reviewing what you will learn in a healthcare administration bachelor's program.

Step 2: Build relevant healthcare experience

Healthcare managers rely on well-developed knowledge of institutional functions to perform their duties. As such, the role typically requires multiple years of relevant experience. You can build that experience by working your way up the healthcare administration ladder.

As an alternative, you can transition into healthcare management after working in patient care. Nurses and doctors sometimes choose to follow this path.

Professional experience in public health or non-healthcare business roles may also work to your advantage. However, specific knowledge of healthcare institutions and how they work is essential.

Step 3: Consider pursuing a certificate or master's in healthcare administration

You can also consider boosting your career by pursuing a graduate degree. You can seek a graduate certificate in healthcare administration or a master's degree.

If you choose the degree path, consider a master's in healthcare administration (MHA) or a master of business administration (MBA) with a healthcare concentration. Both paths build strong skill sets, and both are available to learners from diverse educational and professional backgrounds.

Also, note that licensure requirements apply to some healthcare management roles. For example, all states require that nursing home administrators hold specialized licenses. Research your state's licensing requirements as you compare educational options.

Healthcare manager vs. healthcare administrator

During your journey, you'll likely encounter the terms "healthcare manager" and "healthcare administrator," and you may wonder how they differ. Because these roles have overlapping duties, some sources use the terms interchangeably. However, subtle but important elements differentiate these positions.

Healthcare administration focuses on specific operations within a healthcare institution, such as claims processing or records management. In contrast, healthcare management takes a big-picture view, guiding the entire organization's operational course.

Also, healthcare administrators tend to work almost exclusively in institutional settings. Healthcare managers work in these settings too, but they may also operate in external organizations such as consulting firms or insurance companies.

How much can you make as a healthcare manager?

According to May 2024 data from the Bureau of Labor Statistics (BLS), medical and health services managers earned a median annual salary of $117,960 and an average annual salary of $137,730.

Notably, the BLS projects very rapid growth for this career path. The BLS projects 29% job growth for medical and health services managers from 2023–33.

Get started on edX

edX partner providers offer many opportunities to learn how to become a healthcare manager. These include standalone courses, executive education programs, bachelor's and master's degrees, and more.

Connect with online courses and programs to start your journey.