A guide to a career path in health care administration

By: The Capella University Editorial Team with Bradly E. Roh, PhD, DBA and Interim Dean and Vice President for the School of Business, Technology and Health Care Administration

Reading Time: 10 minutes 

Health care organizations are some of the most complex workplaces in any industry. Hospitals, clinics and health systems depend on people across many functions to keep services running. 

That complexity also means there are many different career paths behind the scenes. If you want to work in health care without providing direct patient care, figuring out where to start in administration can feel unclear at first.

Understanding how administrative roles fit into the broader health system can help you identify where your skills and interests may apply. 

Explore why professionals pursue careers in health care administration, some of the roles available at different career stages and how you can prepare to move into this field. 

Building a career in health care? Explore Capella’s online health sciences programs.

Why pursue a career in health care administration?

For professionals interested in the health sector without providing direct care, health care administration offers a path that supports patient services through leadership and operations. Several factors draw people to this field, from long-term demand to opportunities for advancement and specialization.

Job stability and long-term demand

Health care is one of the few industries where the need for hospital administrators doesn’t slow down. As long as people need care services, medical facilities will need professionals to manage operations. Choosing health care as a career path could potentially mean working in a field with consistent demand. 

Career progression

In health care administration, you can start with entry-level roles such as a medical office coordinator or a patient services supervisor. These roles often focus on coordinating schedules and supporting daily operations so clinical teams can focus on patient care. 

As you build experience, you may move into leadership and management roles that oversee a department or guide operational programs. In larger organizations, administrators may continue progressing into positions responsible for operations across multiple teams or facilities.  

Each step up increases your influence over how services are organized and delivered. 

Flexibility to specialize 

Health care administration includes many different operational areas, which means you can focus your work on a specific function over time. Some roles concentrate on patient access and scheduling. Others support compliance, quality improvement or regulatory documentation. In larger organizations, administrators may also work in areas such as health information management or finance. 

For example, someone who begins in a general administrative role may later move into health information management if they develop an interest in data systems and medical records.  

This ability to specialize allows administrators to build deeper expertise while continuing to work within the health care system. Over time, professionals often shape their careers around the operational areas that best match their strengths and interests. 

Entry-level careers to explore

Your first role is where you learn how the system actually works. Working inside health care facilities gives you hands-on experience with the processes and workflows that define the field. Career outcomes vary based on many factors, and pursuing a particular pathway or degree doesn’t guarantee a job, promotion, salary increase or other career growth. 

Health information manager

As a health information manager, you manage the security and accessibility of patient health records within health care organizations. You’re responsible for ensuring data systems meet federal standards and that clinical documentation accurately reflects patient care for billing, legal and continuity purposes. 

Responsibilities may include:

• Maintaining compliance with HIPAA (Health Insurance Portability and Accountability Act) and other federal and state data regulations

• Reviewing patient documentation and querying providers to correct or update records

• Supporting audits, reporting and quality improvement initiatives 

• Managing access controls so only authorized personnel can view sensitive records

Degree pathway

• Common degrees: Bachelor’s in health care administration, health informatics or a related field, with coursework in data management and information systems

• Certifications: RHIA (Registered Health Information Administrator) or RHIT (Registered Health Information Technician) from AHIMA (American Health Information Management Association)

With Capella’s Bachelor of Science (BS) in Health Care Administration, Health Information Management specialization, you can build the skills to manage electronic health records. You can also learn how to navigate data security requirements and apply statistical analysis in real health care settings, while studying online at a pace that fits your schedule. 

Clinic manager or health care manager

In this role, you manage daily workflows at outpatient centers, ambulatory care settings and general medical and surgical hospitals. The role focuses on keeping the facility running efficiently while maintaining compliance with environmental and operational standards. 

Responsibilities may include:

• Hiring, training and scheduling administrative and support staff 

• Managing the clinic’s budget, billing systems and inventory of supplies and equipment

• Developing and implementing policies and procedures to meet compliance and safety standards

• Serving as a key point of contact between clinical staff, department heads and external partners 

Degree pathway

• Common degrees: Bachelor’s in health care administration or health services management

• Certifications: CMM (Certified Medical Manager) through PAHCOM (Professional Association of Health Care Office Management); some employers may list other practice/clinic admin credentials

As a student starting out or a professional looking to move into health care operations, you can prepare to pursue clinical management roles with Capella’s BS in Health Care Administration Leadership. You’ll work on foundational skills in people management, strategic planning, health care finances and marketing, to lead teams and coordinate care delivery. 

Remember that these are just examples of potential roles within health care administration. Outcomes vary based on many factors, and no degree can guarantee access to a job or salary.

Mid-level careers

Moving into a mid-level role means taking on greater management responsibilities. You supervise teams, control budgets and are responsible for how a department or program performs. 

Behavioral health care manager

Behavioral health care managers oversee the administrative side of mental health or substance use treatment programs. Because these programs are closely regulated, the role often involves working with licensing rules, Medicaid requirements and accreditation standards. 

Responsibilities may include:

• Managing program operations and service delivery workflows for mental health or substance use programs

• Ensuring compliance with state behavioral health program licensing requirements and federal Medicaid and SAMHSA (Substance Abuse and Mental Health Services Administration) regulations

• Coordinating care transitions and service referrals across inpatient, outpatient and community-based behavioral health settings

• Tracking program outcomes and preparing reports for funders, accreditation bodies such as CARF (Commission on Accreditation of Rehabilitation Facilities) and state oversight agencies

Degree pathways

• Common degrees: Master of Health Administration (MHA) degree

• Certifications: CPRP (Certified Psychiatric Rehabilitation Practitioner) (often requested in behavioral health program management roles)

Note: Licensure varies by state and employer. If the role includes supervising clinical staff, you may need an active license such as an LCSW (Licensed Clinical Social Worker), LPC (Licensed Professional Counselor) or RN (Registered Nurse). Check your state requirements before committing to this path.

For administrators already working in behavioral health settings who meet licensure requirements, Capella’s MHA can help you develop leadership skills, preparing you for new opportunities.

Practice manager

Practice managers oversee the daily operations, staff management and financial performance of a medical practice, like a physician group, specialty clinic or other outpatient setting. 

Responsibilities may include:

• Managing revenue cycle operations, including fee schedules, payer contract negotiations and accounts receivable 

• Coordinating payroll and financial reporting to practice owners or governing boards

• Representing the practice in negotiations with insurance companies, vendors and third-party service providers 

• Reviewing denied insurance claims, identifying causes and coordinating with staff to resubmit them 

Degree pathways

• Common degrees: MHA

• Certifications: Practice-manager credentials vary by employer; some listings mention CMM (Certified Medical Manager) or similar credentials

Professionals with a background in operations, finance or office management outside of health care may be able to transition into this role if they combine their experience with a relevant degree. 

If you're already working in this sector and want to upgrade to practice leadership, Capella’s MHA can help you build skills that practice managers need, such as financial management, team leadership and strategic decision-making. 

Prior experience, geography and degree field, affect career outcomes, and Capella does not guarantee a job, promotion, salary increase or other career growth.

Senior-level careers

At the senior level, roles often emphasize strategy. You set organizational priorities, lead system-wide initiatives, evaluate performance and make decisions that directly affect the financial health and quality of care delivered across the entire facility. 

Director of compliance

In this role, you build and oversee health care programs that keep organizations aligned with federal, state and local regulations, such as HIPAA and the HITECH (Health Information Technology for Economic and Clinical Health) Act. You work across departments to identify risks, enforce standards and respond to regulatory changes. 

Responsibilities may include:

• Conducting internal audits and risk assessments to identify vulnerabilities and build corrective action plans 

• Leading compliance training and education programs for staff across departments

• Investigating reported violations and coordinating with legal counsel when necessary

• Liaising with government agencies, accreditation bodies such as The Joint Commission and executive leadership on compliance matters

Degree pathway

• Common degrees: Doctor of Health Administration (DHA)

• Certifications: CHC (Certified in Health Care Compliance) through the Health Care Compliance Association

Alongside education, most director-level positions require more than seven years of experience in a compliance, legal or regulatory role within a health care setting.

If you’re already working in health care administration or a compliance-adjacent role and want to move into executive leadership, Capella’s DHA program can help you build expertise in health care law and organizational strategy.  

Program director

Planning and implementing specific health care programs or service lines within a facility involves coordinating many moving parts. You work across clinical, administrative and financial teams to make sure programs meet operational goals, budget targets and regulatory requirements. 

Responsibilities may include:

• Managing program budgets and allocating resources to support efficient service delivery 

• Hiring, supervising and supporting program staff, including managers and coordinators 

• Monitoring program performance using data and metrics and reporting outcomes to senior leadership

• Ensuring programs meet applicable federal and state regulatory and accreditation standards

Degree pathway

• Most common degree: DHA

• Certifications: PMP (Project Management Professional) through the PMI (Project Management Institute)

With Capella’s DHA program, you can build on your master’s degree and transition from clinical or project management roles into program and executive leadership. You can shape organizational strategy, oversee financial performance and drive decisions that affect how entire health care systems operate. 

Remember that these are just examples of career options within health care administration. Prior experience, geography and degree field, affect career outcomes, and no degree or pathway can guarantee a job or salary.

Pursuing a future career in health care administration

Health care administration offers paths that grow with your experience, whether you’re starting in operations or preparing for executive responsibility.  

The key is aligning your education and on-the-job learning with the level of impact you want to make. 

Explore Capella’s online health science degrees to build practical skills, such as managing, overseeing, executing and leading operations in complex health care environments.  

Ready to take the next step? Find the Capella online health science degree that fits your goals.

FAQs

What is the career path of a health care administrator?

Health care administrators typically start in roles such as health information manager or medical coordinator and advance into mid-level positions like practice manager with experience and education. Senior roles such as chief operations officer or program director generally require a master’s degree or higher combined with significant leadership experience.  

The career path is not always linear. Some professionals move into the field through certifications or by transitioning from adjacent roles in operations, finance or human resources.  

Is health care administration a good career?

Health care administration offers a range of work environments and opportunities that can help you grow your skills and prepare for entry-level to executive roles. As health systems continue to expand, the need for professionals who can manage operations, coordinate teams and ensure compliance continues to grow across hospitals, clinics and outpatient settings. 

What can you do with a health care administration degree?

A health care administration degree can prepare you for roles across clinical facilities, public health organizations, long-term care settings and outpatient centers. Depending on your degree level, you can pursue careers in operations, compliance, program management, health information or executive leadership.