Health Care Management

Employment for medical and health services managers is expected to grow by 29 percent from 2023 through 2033, according to the U.S. Department of Labor (DOL). It will be the sixth, fastest-growing career during this time span.

The DOL reports that “as the large baby-boom population enters older age groups, which typically experience more health problems, there should be increased demand for health care services. This means there will be greater need for physicians and other healthcare workers, medical procedures, and health care facilities, and therefore greater need for managers to organize and oversee medical information and healthcare staff. These managers are important for improving care coordination, which is key in team-based care. In addition, widespread use of electronic health records will continue to create demand for managers with knowledge of health information technology and informatics systems.” Demand will also increase in the offices of health practitioners, as services that were formerly provided in hospitals are shifted to these settings.

The DOL reports that management careers in the following medical and health services sectors will have especially strong growth through 2033:

• services for the elderly and persons with disabilities: +52.1 percent
• offices of physical, occupational and speech therapists, and audiologists: +48.9 percent
• home health care services: +44.7 percent
• offices of other health practitioners: +44.6 percent
• outpatient care centers: +42.5 percent
• ambulatory health care services: +35.2 percent
• specialty (except psychiatric and substance abuse) hospitals; state, local, and private: +34.0 percent

The recruiting firm B.E. Smith reports that turnover among senior health care executives continues to be an issue. One reason for this turnover is that many C-suite members—especially CEOs—are in their 60s and close to the traditional retirement age. To address this issue, B.E. Smith reports that “organizations are expanding horizons to fill the leadership gap, looking beyond the healthcare industry for senior talent, both to augment the candidate pool and to import new skills.” Those with managerial experience in finance and hospitality were cited as the most desirable sources of managerial experience from outside the industry, followed by those from the information technology and life sciences/pharma sectors.

There is also a shortage of chief nursing officers, and not enough replacements are in the pipeline. Many nurses are uninterested in pursuing management positions. In fact, 61 percent of registered nurses surveyed said they did not want to pursue a career in management. Only 7 percent of nurses said that they planned to pursue a career as a nurse manager in the next three years, according to the staffing firm Trusted Health’s 2021 Nurse Career & Satisfaction Survey.

Some industry segments will not grow as fast as others. Hospitals will continue to employ the most medical and health services managers but job growth, while still strong, will increase more slowly (25.5 percent) than the 29 percent growth expected for all health care managers because of the increasing use of clinics and other outpatient care sites. Since there are many hospitals, there will continue to be many job openings for managers in this specialty. Changes in the health care system are taking place because of the need to control escalating costs. This will have the greatest impact on hospitals, traditionally the largest employer of health services executives. Medical and health services managers with experience in large hospital facilities will enjoy an advantage in the job market, as hospitals become larger and more complex. According to the American Hospital Association, the trend toward hospital systems that include laboratories, group practices, ambulatory care facilities, and ancillary care will increase. In addition, separate companies are being set up to provide services such as ambulatory surgery, alcohol and drug rehabilitation, or home health care. These organizations will compete with hospitals for patients and funding.

With hospitals adopting a more business-like approach aimed at lowering costs and increasing earnings, demand for MBA graduates should remain steady. Individuals who have strong “people” skills and business or management knowledge will find excellent opportunities as administrators in nursing homes and other long-term facilities.

Americans are living longer, and although seniors are healthier today on average than they were in the past, this demographic group still requires more care than other age groups do. This suggests that as the number of senior citizens increases, demand will grow for managers who oversee operations at nursing homes, long-term care facilities, and other settings where health care is provided to the elderly.

Managers also will be needed to oversee the digitization of patient records and to ensure their security as required by law. Additional demand for managers will stem from the need to recruit workers and increase employee retention, comply with changing regulations, implement new technology (especially AI), and help improve the health of their communities by emphasizing preventive care.

More opportunities will be available with health care management companies that provide management services to hospitals and other organizations, as well as specific departments such as emergency, managed-care contract negotiations, information management systems, and physician recruiting.

Technology is fueling the creation of new managerial roles and expanding the work of existing managers. B.E. Smith, a health care executive search services firm and a company of AMN Healthcare, surveyed executives regarding which health care leadership roles are likely to grow in importance. Three of the four roles they cited involve technology management and include leadership roles in cybersecurity, artificial intelligence, and information technology. “Healthcare providers are accelerating their application of technology to increase efficiency, enhance clinical diagnosis and outcomes, and protect patient data,” said Mary Newell, vice president of physician and leadership search for AMN Healthcare. “This requires both hard assets and the leadership talent to optimally apply them.”

Applicants with work experience in the health care field, professional certifications, and strong business and financial management skills should have the best opportunities. Competition for jobs at the highest management levels will be keen because of the high pay and prestige. It’s important to note that required skill sets have changed for corporate-level managers. “From new financial challenges to elevated executive turnover to a changing workforce, compelling industry trends are mandating that leaders become more strategic and reliant on a host of interpersonal skills,” according to the staffing firm AMN Healthcare. Respondents to its 2022 AMN Healthcare Trends Survey cited the following traits as being most important:

1. Communications: 23 percent of respondents cited this trait
2. Integrity: 18 percent
3. Vision/Strategy: 17 percent
4. Ability to Build Positive Culture: 16 percent
5. Agility/Adaptability: 15 percent

In the 2022 survey, “Communications” and “Integrity” moved ahead of perennial leader “Vision/Strategy.” AMN Healthcare says that “the tight range of scores for the five attributes underscores leadership’s multiple demands.”

Salaries of health care managers depend on the type of facility, its geographic location, the size of the administrative staff, budget, and the policy of the governing board. Salaries ranged from less than $67,900 to more than $216,750 in May 2023, according to the DOL. Mean annual earnings of medical and health services managers were $134,440. The mean annual salary for workers in all careers was $65,470. Mean annual wages were highest in New York ($179,160), District of Columbia ($170,710), Delaware ($164,190), New Jersey ($162,430), and Massachusetts ($158,540). Salaries for managers varied by facility type. For example, managers at general medical and surgical hospitals earned mean annual salaries of $145,390, while those who were employed at nursing care facilities earned $106,520.