Healthcare administration is a growing field, and with a degree in hand, you’ll be ready to take on a variety of exciting career opportunities. But, really, is a healthcare administration degree worth it?
In this article, we’ll examine the value of a healthcare administration degree and the factors to consider before deciding if it’s the right educational path for you.
The Benefits of a Healthcare Administration Degree
1. Growing Field
The continued growth of the healthcare industry is contributing to a growing field of healthcare administration because there is an increasing demand for skilled professionals to manage and oversee the operations of healthcare organizations.
Specifically, these are the factors that are contributing to the growth of the healthcare industry and the demand for healthcare administrators:
- Aging population: As people are living longer, there is an increased demand for healthcare services. This is particularly true for older adults – especially baby boomers at the moment-, who often require more medical care.
- Technological advances: Constant advances in medical technology are leading to new and improved treatments for different conditions. These advances require healthcare administrators to manage and oversee the implementation of new technologies in healthcare organizations.
- Increased access to healthcare: In many countries, there are initiatives to increase access to healthcare, such as the Affordable Care Act in the United States. This can lead to an increased demand for healthcare administrators to manage and oversee the delivery of care to a larger number of patients.
- Changes in healthcare delivery: There is a trend towards more decentralized and community-based models of healthcare delivery across the world. This requires healthcare administrators to be able to effectively manage and coordinate care across a variety of settings.
Besides, according to the Bureau of Labor Statistics (BLS), employment in healthcare management is projected to grow 28% from 2021 to 2031.
2. Diverse Career Opportunities
There are many different career opportunities available in healthcare administration, and the specific job roles and responsibilities can vary widely depending on the size and type of healthcare organization.
Some common career paths in healthcare administration include:
- Hospital administration: Hospital administrators are responsible for managing the day-to-day operations of a hospital- including managing budgets, personnel, and facilities, as well as coordinating the delivery of healthcare services.
- Medical office management: Medical office managers are responsible for administering and managing a medical practice or clinic- including managing staff, scheduling appointments, managing patient records, and handling billing and insurance issues.
- Nursing home administration: Nursing home administrators are responsible for managing the operations of a nursing home or long-term care facility- including overseeing the delivery of healthcare services, managing staff, and ensuring compliance with regulations.
- Public health administration: Public health administrators are responsible for managing public health programs at the local, state, or federal level- including managing budgets, developing and implementing public health policies, and coordinating with other healthcare organizations.
- Health insurance administration: Health insurance administrators are responsible for managing the operations of a health insurance company. This includes managing budgets, developing and implementing insurance policies, and coordinating with healthcare providers.
In 2021, the largest employers of healthcare administration degree graduates were:
|Hospitals; state, local, and private||30%|
|Offices of physicians||12%|
|Nursing and residential care facilities||9%|
|Outpatient care centers||7%|
So, with a healthcare administration degree, you’ll learn the skills you need to manage the business side of healthcare, from financial planning and budgeting to human resources and information systems.
3. Increased Earning Potential
According to the BLS, the median annual wage in healthcare administration was $101,340 in May 2021.
Median annual wages in the top industries were:
|Hospitals; state, local, and private||$119,450|
|Outpatient care centers||$99,540|
|Offices of physicians||$98,230|
|Nursing and residential care facilities||$83,550|
Typically, healthcare administrators working in larger healthcare organizations, such as hospitals, and those who have advanced degrees and more experience earn higher salaries.
Healthcare administrators who work in certain locations may also have higher earning potential due to factors such as the cost of living and the demand for healthcare services in that area.
But judging from the median annual wages, a healthcare administration degree will earn you a pretty comfortable salary!
Pursuing a Healthcare Administration Degree – What to Consider:
I. Financial Costs
Here are the factors to consider as part of the financial costs of pursuing a degree in healthcare administration:
⚫ Tuition costs: Healthcare administration programs can be expensive, especially if you are considering pursuing a graduate degree- e.g, an MBA with a healthcare administration specialty.
It is important to research the tuition costs of different programs and understand how much you will need to pay in order to complete your degree.
According to DATA USA, the average tuition costs for a Health Care Administration & Management major at a public college in-state are around $7,070, while the average tuition costs for a Health Care Administration & Management major at a private college out of state are around $31,144.
⚫ Opportunity cost: Pursuing a degree in healthcare administration requires a significant time commitment, and you may have to forego other opportunities, such as working or participating in other activities, while you are in school.
So, consider the opportunity cost of pursuing a degree in healthcare administration, and whether the potential benefits of the degree outweigh the costs.
⚫ Debt: Many students pursuing a healthcare administration degree take out student loans to cover the costs of attendance. So, consider the amount of debt you will incur and how you will manage it after you graduate.
⚫ Return on investment: Think about the potential ROI of pursuing a healthcare administration degree- not only the potential salary and benefits you may receive after graduating but also the value of the skills and knowledge you will gain during your studies.
II. Time Commitment
If you’re considering pursuing a degree in healthcare administration, think about the time commitment involved.
First, consider the length of the program. Healthcare administration programs can vary in length, with some taking as little as two years (for Associate & Master’s degrees) and others taking 3–7 years (for Bachelor’s & Doctoral degrees).
Ensure you have the time and resources to commit to the program you’re considering.
Next, think about the course load. Healthcare administration programs can be demanding, and you may be required to take a full course load to complete the program promptly.
Make sure you have the time and energy to commit to a full course load while also managing other responsibilities like work and family commitments.
Finally, consider any other commitments you have. Pursuing a degree in healthcare administration requires a significant time commitment, and you may have to forego other opportunities like working or participating in other activities while you’re in school.
Think about the impact this time commitment will have on your other commitments, and whether you’re prepared to make the necessary sacrifices.
So, Is a Healthcare Administration Degree worth it?
In conclusion, a healthcare administration degree can be a valuable investment in your future, with the potential to open up a range of diverse and rewarding career opportunities in a growing field.
With the skills and knowledge, you’ll gain from a healthcare administration program, you’ll be prepared to succeed in a variety of roles, from hospital administration to public health administration. And with employment in healthcare management projected to grow 28% from 2021 to 2031, the demand for skilled professionals is only set to increase.
However, carefully consider the financial costs, time commitment, and potential ROI before making a decision. Take the time to research your options and weigh the pros and cons, and you’ll be well on your way to a fulfilling career in healthcare administration.