Healthcare facilities and companies are complex organisms, and their leadership must be able to keep them running smoothly. Healthcare managers have a hand in staffing ratios and facility budgets, and act as a liaison between upper and lower management to communicate policy changes and staff needs. Unlike a nurse manager, who works directly with nursing staff on medical units, healthcare managers look at the big picture for their organization, ensuring their facility or healthcare product is efficient, cost-effective, and attracts capable staff.
Where Do Healthcare Managers Work?
Healthcare managers can work in a large variety of settings, from the hospital to an office building. Some may even work at home or on a hybrid schedule. Some common places that employ healthcare managers include:
Hospitals
Home health care
Long-term care facilities
Outpatient care centers
Skilled rehab facilities
Government agencies
Universities
Health technology companies
Third-party vendors like EPIC (a popular documentation system)
Some healthcare managers go to patient units to speak with staff and keep their fingers on the pulse of the facility. Healthcare management almost always involves meetings throughout the day, discussing high-level vision, and creating action steps to achieve the company’s goals.
What Does a Healthcare Manager Do?
The daily life of a healthcare manager will depend on what type of role they choose. In academic or research roles, they may conduct surveys and analyze data from an office. If they work in a large hospital, they may spend their time meeting with nurse managers, directors of nursing, and executive management to discuss status and plans for the future.
A healthcare manager may be responsible for:
Advancing policies and standard-of-care guidelines to ensure high levels of care.
Analyzing patient claims to develop predictive models of future healthcare needs.
Creating long-term, high-level goals and action steps on an ongoing basis.
Developing risk assessments for future plans.
Ensuring the efficient flow of patient care.
Keeping their facility up to date with state and federal regulations.
Managing quality assurance for their facility and creating improvement plans.
Overseeing the management of policies, accounting, and practical needs of their facility.
Providing solid leadership to their organization, helping all operations become more streamlined.
Working to build and expand their professional network and the network of their organization.
While healthcare managers don’t treat patients themselves, they have the opportunity to promote better care for all patients under their purview. In a hospital setting, they can implement new policies that keep patients safer. In the research sector, they can help develop new products and workflows that improve patients’ healthcare options.
How Do I Become a Healthcare Manager?
Healthcare managers don’t have to be nurses, but experience in healthcare is an important requirement. To become a healthcare manager, the first step is to earn a bachelor’s degree in a field like nursing, business, health services, or liberal arts.
If someone decides to go the nursing route to healthcare management, they may find a position more easily if they first practice as a registered nurse (RN) for several years. After graduation, RNs need to pass the state licensing exam: the National Council Licensure Examination (NCLEX-RN). A series of multiple-choice questions, this standardized test shows a nurse’s clinical knowledge and capability to practice in their field.
Any type of bedside experience can help prepare a nurse for healthcare management. Leadership roles on the floor, like working as a charge nurse, may also provide good experience.
After working on a unit, aspiring healthcare managers can begin their advanced degree: a Master of Science in Nursing (MSN) or a Master in Healthcare Administration. These degrees give healthcare managers an even deeper understanding of the healthcare system, and many facilities require an MSN to be considered for the role.
Healthcare managers can choose from any number of professional certifications, depending on their area of focus. The American Organization for Nursing Leadership has approved a few advanced certifications for healthcare managers: the CENP and CNML. The Certified in Executive Nursing Practice (CENP) certification is designed for nurse executive positions. Applicants must have:
An active unrestricted RN license
A Master’s in Nursing with two plus years of experience in an executive nursing role OR
A Bachelor in Nursing (BSN) and four years of experience in an executive nursing role
The Certified Nurse Manager and Leader (CNML) certification is designed for healthcare managers. Applicants must have:
An active, unrestricted RN license
A BSN degree or higher with two plus years of experience as a healthcare manager OR
A non-nursing bachelor’s degree with three years of experience as a healthcare manager OR
An associate’s degree with five years of experience as a healthcare manager
Because healthcare managers work in management roles, they can earn more than bedside nurses. The US Bureau of Labor Statistics (BLS) reports the average salary for healthcare managers is $127,980 as of 2022. This amount can vary depending on the work setting and the cost of living in the area. The low-end average was $64,100 and the high-end was $209,990. Depending on the type of facility, an employer may be able to offer higher or lower compensation:
Hospitals; State, Local, and Private: $119,450
Government: $117,000
Outpatient Care Centers: $99,540
Offices of Physicians: $98,230
Nursing and Residential Care Facilities: $83,550
Pharmaceutical and Medicine Manufacturing: $225,700
Scientific Research and Development Services: $219,050
Salaries also vary depending on which state a healthcare manager works in. The West Coast generally pays nurses the best, but they also have a higher cost of living.
The top-paying states for healthcare managers are:
New York: $171,620
District of Columbia: $156,870
New Jersey: $153,300
Massachusetts: $152,450
Delaware: $150,840
The top-paying cities for healthcare managers are:
Dalton, GA: $172,490
New York-Newark-Jersey City, NY-NJ-PA: $172,320
San Francisco-Oakland-Hayward, CA: $171,610
California-Lexington Park, MD: $171,180
San Jose-Sunnyvale-Santa Clara, CA: $165,140
Trenton, NJ: $162,390
Bloomsburg-Berwick, PA: $159,920
Boston-Cambridge-Nashua, MA-NH: $159,130
Janesville-Beloit, WI: $158,710
Rochester, NY: $157,380
Certified healthcare managers can be paid more than those who aren’t certified, depending on the facility. In general, the more experience and proof of expertise, the more a healthcare manager will be able to earn.
Are Healthcare Managers in High Demand?
Healthcare managers are in high demand, and the demand is projected to increase in the years ahead. The BLS reports that 480,700 medical and health services manager jobs were available in 2021, and they expect this number to increase 28% by 2031, much faster than the average.
Healthcare in the United States is a profitable industry, and new hospitals are being built all the time. Revenue for digital health products is expected to grow annually by almost 11%, reaching a projected market volume of $256 billion by 2027. With such financial promise, healthcare manager roles are set to increase.
Additional Resources About Becoming a Healthcare Manager
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