Healthcare Careers: A Day in the Life of a Healthcare Administrator

By Rick Fromme

In today’s ever-increasingly complex world of healthcare delivery, skilled Healthcare Administrators are essential in overseeing and managing a wide range of medical facilities. They’re in large part responsible for the facility’s overall efficiency and ensuring it consistently delivers expert patient care. Healthcare Administrators plan, direct, coordinate, and supervise the delivery of healthcare. They deal with the integration of healthcare delivery systems, technological innovations, an increasingly complex regulatory environment, restructuring of work, and an increased focus on preventive care. The healthcare administrator job description is constantly evolving to adapt to a perpetually changing environment. It’s a challenging job, but one that can be rewarding both personally and financially. 

Postive Job Outook

Just like numerous jobs in the clinical aspect of healthcare (i.e., physicians, physician assistant, ARNPs, physical therapists, dentists, etc.), according to the U.S. Bureau of Labor Statistics (BLS), the job outlook for Healthcare Administrators is also projected to increase; projecting a 22% growth in this field over the next ten years.  Those who have strong business management skills and usually an advanced degree, such as having graduated from an MBA program specializing in Healthcare Management will prove to be the best candidates for this multifaceted leadership role.  

Various Work Environments

In addition to the hospital or medical center’s principal CEO, large medical facilities usually employ several assistant administrators who aid their top administrator and execute a variety of tasks. Assistant administrators often direct activities in clinical areas such as nursing, surgery, therapy, medical records, or healthcare IT. They may be in charge of recruitment or — especially in today’s evolving legislative/regulatory environment — be assigned as a liaison to the government.

In larger facilities, hospital administrators (and their staff) serve as liaisons between governing boards,   
medical staff, and department heads. They also ensure the activities of all departments are integrated, so they’ll function synergistically. They must also adhere to policies set by a governing board of trustees and regulatory entities.

Likewise, in these larger environments, clinical managers have training or experience in a specific clinical area and, accordingly, have more specific responsibilities than do generalists. For example, directors of the robotic surgery department are experienced this innovative field, perhaps having undergone specialized training with the device’s manufacturer. Clinical managers establish and implement policies, objectives, and procedures for their departments; evaluate personnel and work quality; develop reports and budgets; and coordinate activities with other managers.

Kaweah Delta Medical Center office along Mill Creek (Photo credit: Wikipedia)

In smaller facilities and group practices, administrators are in charge of more of the day-to-day operations. For example, in a fairly large group practice that may involve several medical doctors, physician assistants, nurses, medical assistants, clerical and marketing staff, healthcare IT, etc., the healthcare administrator will oversee the operations and performance of this varied personnel. Depending upon their professional arrangement, a healthcare administrator in these types of practices may focus predominately on operational and business affairs, leaving policy decisions up to the physicians in the group.

Requisite Skills

Regardless of whether they’re in charge of a clinical area or the management of a healthcare facility, a variety of business and management skills are mandatory in order to establish long-range planning, the creation of operating objectives and annual budgets, and establishment of an overall system for the efficient implementation of medical services. The ability to create and understand detailed financial reports, managed care contracts and major expenditures are necessary, as is the ability to structure and administer administrative policies. In a clinical setting, this may also include detailed procedures and protocols for patient care.  

Healthcare is constantly evolving. Consequently, Healthcare Administrators are tasked with defining andmaintaining the quality of care being provided and do it as efficiently as possible. The healthcare administrator needs to adapt to:

• The various ways care is delivered
• The technology deployed
• The regulations that must be followed
• The changing work environment
• The increasing role of preventative care
• The evolving federal laws pertaining to healthcare delivery (i.e., changes in ACA, Medicaid, Medicare)

In larger healthcare practices and facilities, Healthcare Administrators oversee such areas as:

• Nursing
• Surgery
• Internal medicine
• Medical records
• Information systems
• Human resources
• Finance
• Facilities and material
• Patient admissions

Because healthcare administration has its hands in many functions of healthcare delivery, it can be a very challenging position. Working conditions vary. Oftentimes, 40+ hour work weeks and being on call are the norm. Especially since many large facilities have 24-hour health care services, its administrative staff must be available when certain issues occur. 

This is in line with the overall growth of health care and many of the delivery roles. The median salary is noted as $90,000, 000 per year. This can vary dramatically based on the degree, experience and size of facility.

Educational Requirements

Images of custom amirugami, an amirugami graduate in cap and gown. Self-made. (Photo credit: Wikipedia)

To be qualified to work in healthcare administration it is advised to obtain and Bachelor’s or master’s degree. A Bachelor’s in Healthcare qualifies applicants to work small group practice or individual departments. A master’s degree and previous professional experience is required to work in larger practices, to be in charge of multiple departments, or to head up a major medical entity.  However, depending upon the situation, if one is already degreed and trained in a specific clinical area such as nursing, pharmacy or medical technology, then a sometimes Bachelor’s degree in Health Care Administration may be sufficient.

It’s also possible to specialize. For instance, there are separate degrees available in Healthcare IT, (see our previous blog, “A Look Inside Healthcare IT Jobs”) Accounting and Finance, and Human Resources. These degrees would prove beneficial when seeking employment in larger facilities such as a regional medical center. 

Be forewarned that like many top tier clinical medical careers, being a Healthcare Administrator is a demanding, multifaceted job. But for someone who is passionate about health care and wants to employ their business acumen for the betterment of patients and the myriad healthcare personnel who serve them, healthcare administration can be a satisfying and rewarding career path.

In this article, I discussed the roles and responsibilities of a Healthcare Administrator. I explained many of the areas of
oversight for which Healthcare Administrators are responsible.   I also pointed out some of the various workplace environments for Healthcare Administrators and provided information about educational requirements to enter the in-demand, but challenging field. If you found this article useful, please feel free to share it with your colleagues and others. If you’d like to leave a comment, please do so below.

Rick Fromme combines entrepreneurial enthusiasm with an insider's knowledge of the medical industry to co-found MedMasters.com. Both his drive and perspective helps provide health care professionals with a superior mechanism with which to communicate, network and market their strengths. Prior to founding MedMasters.com, Rick operated a highly successful medical device distributorship. Other milestones in his 12-year career in the medical industry include a key position at a medical device start-up company that was later sold to the Ethicon Endo division of Johnson & Johnson. You may also reach Rick by connecting with him on Facebook, Twitter, Google+, LinkedIn and YouTube. 

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ObamaCare Aware

By Rick Fromme

President Barack Obama's signature on the health insurance reform bill at the White House, March 23, 2010. (Photo credit: Wikipedia)

As I sit down to research and write this blog, I see that, according to Google’s whimsical holiday-related font, today is the first day of spring. Makes sense; it’s gorgeous here at Ponte Vedra Beach, Florida. The advent of spring means several things are imminent. For one, April; concomitantly, our 2013 tax returns. 

And, for the first time ever, millions of Americans have until March 31st* to sign up for 2014’s open enrollment period for their new “marketplace insurance” as mandated by our nation’s new health care reform.

* On Tuesday, March 25th, the White House announced it was extending the sign up deadline for the ACA for a few more weeks. Fom the "Los Angeles Times":  The Obama administration plans to allow consumers to complete enrollment for health insurance under Obamacare after next week's deadline as long as they declare that they started the process before the end of the month.

Officials said they were making the move now in anticipation of a last-minute rush of consumers seeking health insurance ahead of the March 31 deadline. On Monday, more than 1.1 million people visited HealthCare.gov, the second-largest traffic day on the site, the White House said.

The new law is officially known as “The Patient Protection and Affordable Care Act (PPACA) 2010 HR3590,” more commonly referred to as the “Affordable Care Act,” (ACA), as well as both affectionately and contentiously called ObamaCare. It’s made up of the “Affordable Health Care for America Act,” the “Patient Protection Act,” the health care-related sections of the “Health Care and Education Reconciliation Act,” and the “Student Aid and Fiscal Responsibility Act.” It also includes amendments to other laws such as the Food, Drug and Cosmetics Act and the Health and Public Services Act.

 Rubik's Cube variants from 2×2×2 all the way to 7×7×7. Inspired by Rubik's cube variations. (Photo credit: Wikipedia)

Like many types of over-arching legislation, ACA is long and complex as it attempts to reform America’s multi-sided Rubik’s Cube of a health care system by providing more citizens with affordable quality health  

insurance and by curbing the growth in U.S. health care spending. Ambitious goals, indeed. Reforms include new benefits, rights and protections, rules for insurance companies, taxes, tax breaks, funding, spending, the creation of committees, education, new job creation and more. In many cases, ACA gives power to the ongoing efforts by Health and Human Services and other federal programs seeking to reform health care. So change doesn’t just happen with the ACA. For more information, visit the Health and Human Services site for information on health care reform beyond the ACA.

Simply stated, the ACA attempts to ensure Americans are treated fairly in their right to receive affordable, quality health care, as it strives to make health insurance more affordable to lower and middle income Americans and small business employers. Realistically, no one, even those who crafted and lobbied for ACA, sees it as a panacea, but at least a hopeful step in the right direction.

Condition Critical

Health care reform supporter at town hall meeting in West Hartford, CT, 2009-09-02 (Photo credit: Wikipedia)

Why do we need health care reform? From directly increasing American’s personal debt and even bankruptcy, to the ever-increasing costs of health care, to rising profits of many health care corporations, the U.S.’ health care system is in trouble. A system designed for profits will always do what it can to consistently earn a profit. And therein lies some of its maladies.

Just four years ago, investigations and reports by such venerated organizations as the “Washington Post,” “Forbes,” “Time,” and others strongly opined that our nation’s health care system was in critical condition. Consider just some of their findings:

• In 2009, Americans spent approximately $2.8 trillion on health care, and it’s projected we’ll spend $4.5 trillion on health care by 2019.

• The U.S. spends more on health care than Japan, Germany, France, China, the U.K., Italy, Canada, Brazil, Spain and Australia — combined. Yet unlike many of these other countries, not every American has free or low-cost health insurance.

• According to a report by Health Care for America Now, America's five biggest for-profit health insurance companies ended 2009 with a combined profit of $12.2 billion. Similarly, the top executives at America’s five largest for-profit health insurance companies had combined salaries topping $200 million. Your ever-increasing costs ensure their profits increase.

• If the U.S. health care system was a country, it would be the sixth largest economy in the entire world.

• Back in 1960, an average of $147 was spent per person on health care per year; by 2009, that number had skyrocketed to $8,086.

• The 2009 study found approximately 62% of all personal bankruptcies in the U.S. were related to medical bills, even though a majority — 78% — had health insurance. These unfortunate citizens were bankrupted due to gaps in coverage like co-payments and deductibles and uncovered services. Others who had private insurance got so sick that they lost their jobs and consequently, their insurance.

• Price setting for health care services isn’t regulated by government. Prices are set by the private for-profit organizations such as AMA’s Specialty Society Relative Value Scale Update Committee.

• From 1998-2009, the U.S. health care industry had spent more than $5 billion dollars on lobbying our politicians in Washington D.C.

• The U.S. ambulance industry makes more money a year than the entire movie industry.

• Nearly half of all Americans use prescription drugs. More than 25 for-profit companies made over a billion dollars in profit from prescription drugs in 2008 alone. In 2013, over $280,000,000,000 was spent on prescription drugs.

• And here’s yet another: In the last 10 years, health insurance premiums have risen three times faster than wages.

I could go on, but I think you get the picture. By staying the course, the prognosis isn’t good.

ACA & Health Care Jobs

What is good, however, is that because the ACA readily offers coverage to certain health conditions and preventative testing that were not part of traditional coverage, certain medical support staff positions will likely become more necessary once the law goes into effect. In fact, the simple implementation of the 

provisions of the ACA within medical facilities and insurance companies will increase the need for support staff. Because more Americans will be insured, many speculate the job growth in most health care sectors will be robust. (See my previous blog, “Health Care Jobs Outlook is Jammin’!”) Considering the current demand for many health care positions, pundits forecast an increased need in certain health care careers once ACA is implemented. Here are some health care jobs that will be positively affected following the implementation of the ACA:

Medical Insurance Processing

Because submitting claims via the guidelines of the ACA will require different methodologies from hospitals, doctor’s offices and other medical facilities, medical insurance claim firms should be adding additional processing staff. In addition, to prepare for the onset of the ACA, additional staff will have to be retained in order to prepare the facility’s systems to be in compliance with the requirements, filing limits, and filing deadlines associated with the new health care plan.

Physical Therapists 

 Physical Therapy Equipment (Photo credit: kbrookes)

The ACA emphasizes rehabilitative care and offers increased coverage for it. Likewise, there will be a

significant increase in the demand for skilled physical therapists and physical therapy assistants, as well as occupational therapists. Also, with the increased expansion of Americans who have insurance, it’s likely more people will have the ability to receive rehabilitation services that didn’t qualify for them before.

Diagnostic Technicians

In addition to increased rehab care, the ACA provides increased preventative care and diagnostic services — the goal being to catch maladies and diseases in their earlier stages when they’re more treatable. So such procedures as mammograms, PSAs and other screenings will be more accessible to those who didn’t previously have coverage. Consequently, the number of diagnostic technicians across a broad range of specialties (X-ray, ultrasound, laboratory work, etc.) is expected to increase.

Dental Personnel

While the ACA doesn’t increase dental benefits for adults, it does make dental care available for children, hence the increase for dental assistants, hygienists, dental lab technologists and dental billing/administrative personnel will be in demand. Let’s not forget dentists; that profession was the number one fastest growing profession according to “US News and World Report’s” findings (again, see the blog, “Health Care Jobs Outlook is Jammin’!”).

In this article, I gave a brief overview of the new health care legislation, the Affordable Care Act, which is soon going to affect every American. I also mentioned some of the various maladies and symptoms that are adversely affecting our for-profit health care model. Lastly, I listed some of the health care specialties that are expected to continue their upwards growth curve in particular due to the enactment of the ACA. If you’d like to make a relevant comment about this article, please post below. If you found this article informative and helpful please pass it along.

* Resources: 1. http://www.washingtonpost.com/blogs/wonkblog/wp/2013/03/26/21-graphs-that-show-americas-health-care-prices-are-ludicrous/ 2. http://www.forbes.com/sites/danmunro/2013/02/11/healthcares-pricing-cabal/ 3. http://www.foxbusiness.com/on-air/willis-report/blog/2013/02/25/why-health-care-costs-are-so-out-control 4. http://theeconomiccollapseblog.com/archives/50-signs-that-the-u-s-health-care-system-is-a-gigantic-money-making-scam-that-is-about-to-collapse 5. www.justfacts.com/healthcare.asp 6. healthcare.gov 7. TIME: Why Medical Bills Are Killing Us 8. http://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/NationalHealthExpendData/downloads/proj2009.pdf

Rick Fromme combines entrepreneurial enthusiasm with an insider's knowledge of the medical industry to co-found MedMasters.com. Both his drive and perspective helps provide health care professionals with a superior mechanism with which to communicate, network and market their strengths. Prior to founding MedMasters.com, Rick operated a highly successful medical device distributorship. Other milestones in his 12-year career in the medical industry include a key position at a medical device start-up company that was later sold to the Ethicon Endo division of Johnson & Johnson. You may reach Rick by connecting with him on Facebook, Twitter, Google+, LinkedIn and YouTube.  

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