Why is Healthcare Administration Important?

Updated October 18, 2022 ยท 1 Min Read

Why is healthcare administration important? Healthcare administrators include those who work behind the scenes to process insurance claims and provide support to workers.

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What is the Importance of Healthcare Administration?

When many people think of hospitals and other healthcare facilities, they think about the doctors and nurses working there without giving much thought to why healthcare administration is so important. Healthcare administrators include those who work behind the scenes to process insurance claims and provide support to workers. They are the ones responsible for training new workers and creating new programs that provide information and resources to the general public. Students thinking about studying healthcare administration in college or graduate school should look at the importance of this field and what they can do with their degrees.

Keeps Costs Down

One reason the healthcare administration industry is so important is because it keeps costs down. When a patient who does not have insurance seeks medical help, hospital administrators can work with that patient to lower his or her overall costs. They can work out payment plans or enroll the patient in programs that reduce their costs. If a patient does not pay for medical care, the hospital may pass those costs onto other patients. Administrators can also work with a patient's insurer and find ways to cover the total cost of any services provided.

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Provides Trained Workers

Healthcare administrators handle many of the same duties that managers do. The Bureau of Labor Statistics even includes both types of jobs in the same category. According to the BLS, administrators earn a median salary of more than $93,000 a year. One reason that these professionals earn so much is because they provide the valuable training that employees need. Healthcare administrators are responsible for hiring new employees. They both advertise any open positions after deciding what those positions require and interview any potential employees. Administrators must find the best workers who can handle the needs of any patient.

Helps the Public

Though some assume that healthcare administrators simply work with employees in the offices of a facility, they also provide some help to the general public. Many hospitals now offer special programs such as outreach programs. These programs let the public know why they have an increased risk of suffering from specific medical conditions and what they can do to lower their risks. Other programs help the public understand the reasons why they should stop smoking or get active. Hospitals and other facilities offer these programs because they can help the public stay healthy and reduce the risk that they might need medical help, which can lower healthcare costs.

Maintains Daily Operations

Any look at the importance of healthcare administration must also focus on the daily operations of a facility. Doctors and nurses primarily focus on the medical needs of patients. They are the ones who take their vital signs and order and perform the tests and treatments that patients need. These facilities cannot operate without some administrators working behind the scenes. They are the ones who make sure that the facility operates within its budget and the ones who negotiate with suppliers and vendors to get better prices on anything that works and patients need.

Related Resource: The 25 Best Bachelor's in Health Care Administration Online

Many graduate schools now offer healthcare administration and other degree programs that teach students the business aspects associated with working in this field. The importance of healthcare administration includes helping a facility operate on a daily basis, providing programs for the public, training new employees and helping every patient.

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