Why are Healthcare Administration Jobs in High Demand – 25 Biggest Reasons

Written By: Caitlin Goodwin DNP, CNM, RN

As a nurse, I have observed firsthand how healthcare administrators play a crucial role in shaping the health outcomes for patients and communities. Why are healthcare administration jobs in demand? The need for skilled healthcare administrators is on the rise, and rightfully so. There are many reasons why healthcare administration jobs are needed, including changing healthcare services, evolving patient needs, and ongoing technological advancements. Let us dive into the 25 biggest reasons why healthcare administration jobs are in high demand for healthcare professionals.


The estimated future statistics predict a continuing high demand for healthcare administration jobs. For example, the ten-year projection for growth in healthcare administration jobs is 28.33% between 2021 and 2031. The change in the demand for health services means that the need for healthcare workers will continue to increase with a strong demand for healthcare administration jobs. And after spending two decades working with incredible healthcare administrators, it is clear why- skilled healthcare administrators can provide management, navigation, and efficiency optimization.

(Source: Careeronestop.org)



(The following are the 25 biggest reasons why healthcare administration jobs are in high demand.)

REASON #1: Career Growth and Stability

As medical technology and knowledge advance, the healthcare industry continues to grow and seeks to hire healthcare administrators for many reasons. Healthcare administrators are crucial to their success as more facilities open and expand. One of the top reasons why healthcare administration jobs are in high demand includes the unlimited potential for health system growth and development.

REASON #2: Aging populations

The increase in demand for healthcare administrators is primarily due to an aging population that requires more healthcare. The aging population is not a temporary trend but a permanent change. As the baby boomers reach retirement age and the general life expectancy increases, the aging population requires more medical care. As the need for healthcare grows, so does the need for healthcare administrators to manage medical services. Healthcare administrators ensure that healthcare facilities can meet the growing need for services efficiently and positively.

REASON #3: Health Information Technology

Health information technology includes electronic health records, patient tracking, provider order entry, and medical billing. Many unique technologies, like telehealth, are growing following the pandemic. Healthcare facilities seek administrators who are familiar with information technology because they can efficiently manage these systems to improve workflow efficiency, patient care, privacy, and regulatory requirements.

REASON #4: Cost Efficiency

Healthcare administrators have proven to manage budgets as healthcare costs increase. With an increasing focus on cost efficiency across the healthcare industry, healthcare administrators ensure that their company uses all resources effectively. Healthcare administrators are in demand because they create waste reduction strategies, streamline efficiency, and control costs. Administrators also influence staffing levels because they are familiar with the nuances. While saving money is important, having enough nursing staff working each shift to safely care for all patients and deliver ordered services is crucial.

REASON #5: Emphasis on Quality Improvement

Healthcare administrators adopt and manage health technologies like electronic health records (EHR). With a growing focus on quality improvement (QI), healthcare administrators can improve care delivery by developing and implementing QI initiatives. Currently, in healthcare, the emphasis on QI is growing so that health systems can deliver better patient outcomes, reduce costs, and ensure efficient workflow. Administrators are sought after because they identify areas that can be improved, such as patient satisfaction, mortality and morbidity outcomes, or readmission rates.

REASON #6: Healthcare Data Analysis

As a nurse, I know how much electronic health records and other computer systems create a large amount of data. Healthcare administrators are in demand because they drive health facility decision-making and quality measures as experts at collecting and analyzing data. However, more than just looking back at the data, healthcare administrators use a data-driven approach to interpret the information to improve outcomes and efficiency through patient, financial, and operational changes. Experienced administrators know how to investigate complex data sets to promote better healthcare and can see which measures to implement next.

REASON #7: Risk management

One of the biggest reasons why healthcare administration jobs are in high demand is that risk management is a key aspect of this role. Risk management focuses on identifying, assessing, and mitigating the risks impacting the operations of a facility, including compliance and review by regulatory bodies. An administrator who is an effective risk manager may lead teams, drive strategy, and make decisions that support the mission and values of the organization.

REASON #8: Healthcare Ethics and Compliance

Adhering to healthcare ethics and compliance saves facilities money, enables them to protect their reputation, and provides communities with the best possible care. Since healthcare administrators are specialists in healthcare laws, regulations, and ethical standards, they are in demand for their ability to create policies, training, audits, and incident reports to stay compliant. Healthcare administrators are incredible at maintaining the integrity of the organization through developing, maintaining, and upholding ethical guidelines.

REASON #9: Patient Safety

I have watched healthcare administrators truly put patient safety first because they care, which means all the difference in the world for these teams. Promoting patient safety is one of the most important factors supporting patients in a healthcare facility. In my experience, when an adverse patient safety event occurs, the administration is at the helm, creating policies and working through debriefs to ensure it never happens again. Administrators often do risk assessments, quality improvement, and quality assurance projects to keep patients safe. By putting patient safety first, healthcare administrators uniquely bring a unique combination of respect and care to their work setting.

REASON #10: Interpersonal Communication in Healthcare

Interpersonal communication in healthcare describes the information exchange between individuals throughout the process of delivering and receiving healthcare services. As a nurse, I have witnessed firsthand how interpersonal communication can either be helped or hindered by healthcare administration. Skilled healthcare administrators are in demand because they bridge the gap between medical providers, hospital staff, insurance companies, patients, stakeholders, and the overall community. Good communication improves outcomes, team collaboration, patient satisfaction, and issue resolution.

REASON #11: Healthcare Marketing

Today, effective marketing is crucial to compete in the fast-paced healthcare industry. Regarding healthcare marketing, promoting and positioning the organization and services is vital in a competitive market. To guide marketing strategies, healthcare administrators can provide key information, statistics, and community outreach support. Healthcare administrators are in demand because of their unique skill set in translating important data into public campaigns. Healthcare administrators shape and guide marketing strategies.

REASON #12: Healthcare Public Relations

For those involved in public relations, their priority is managing the positive reputation of the organization. Healthcare administrators oversee public relations efforts and work to improve the public image of the facility through working with the media, crisis communication, and community engagement. Healthcare administrators can build community trust and position the facility as a leader in their field by banking on their reputation. A positive public image attracts patients and high-ranking medical professionals.

REASON #13: Healthcare Policy and Advocacy

Another crucial reason why healthcare administration jobs are in high demand is that they are experts in healthcare policy and advocacy. Healthcare administrators ensure that organizations stay compliant with existing regulations but also work to improve healthcare by shaping policy and advocating for access to quality healthcare in their communities.

REASON #14: Health Insurance

Health insurance in the United States significantly impacts health care access, reimbursement, and care plans. I have witnessed how much some families or patients struggle to get the necessary medical coverage for their individual needs. Healthcare administrators are in demand because they can best navigate the complicated maze of insurance payers. After all, they understand negotiating health insurance reimbursements. Healthcare administrators ensure patients receive the care they need and receive fair reimbursement from health insurance companies.

REASON #15: Continuity of Care

Healthcare administrators are in demand because they excel at providing continuity of care by creating systems that ensure service coordination. Research proves that continuity of care in healthcare facilities improves patient outcomes, strengthens patient satisfaction, and reduces the risk of readmission. Facilities need healthcare administrators because they create policies to support the continuity of care. Healthcare administrators excel at the continuity of care because they have the business skills and healthcare experience to ensure patients and staff alike thrive.

REASON #16: Crisis Management

Crisis management is crucial for health facilities because it keeps patients safe and secure and minimizes costs. Healthcare administrators excel at crisis management because they can manage stressful situations effectively. Healthcare administrators typically create crisis response plans that support patients, staff, and facility infrastructure. By utilizing strategic planning, healthcare administrators can ensure they can work collaboratively and efficiently during an emergency.

REASON #17: Patient Experience

Patient experience impacts health insurance reimbursement, facility reputation, and overall patient satisfaction. When patients are satisfied, the facility is rated better, receives more referrals, and increases patient volume. Healthcare administrators can bolster the patient experience by supporting a higher and more efficient level of service. Health facilities are willing to seek out skilled healthcare administrators because the financial impact of a satisfactory patient experience is substantial.

REASON #18: Community Health Education

Healthcare administrators influence health education through their expertise in policy development, community outreach, public health awareness, and staff training. Healthcare administrators are in demand because they coordinate wellness programs, green lighting public health campaigns, and support community health events. When healthcare administrators focus on community health education, it provides a valuable community outreach center.

REASON #19: Professional Health Training

When it comes to professional health training, healthcare administration jobs are in high demand because they create and implement healthcare professional training programs. The healthcare team must stay updated with industry, practice-based, and medical technology changes to keep patients safe and improve outcomes. Healthcare administrators have the skill to create a budget and policy surrounding professional development.

REASON #20: Global Health Challenges

Global health issues will challenge healthcare, and administrators are in high demand to create policies, procedures, and action plans to combat these factors. According to the Institute for Health Metrics and Evaluation, administrators can impact major health-related issues, including mental health, the long-term effects of the pandemic, climate change, the intersectionality of socioeconomic factors, aging, and chronic disease. With these factors on the rise, healthcare administrators can implement strategies to manage these challenges in the ever-changing healthcare landscape to ensure their facilities maintain the standard of care.

REASON #21: Healthcare Research

Medical and nursing research shapes administrative policies and procedures in medicine as well as impacts billing reimbursement. Healthcare administrators are poised to incorporate this growing body of evidence and find facility experts to disseminate it directly to their medical and nursing teams. Healthcare research provides evidence-based decision-making resources, expert collaboration and consultation, and educational tools. Research is the most important point in healthcare to improve patient care, outcomes, and standards.

REASON #22: Career Advancement Coordination

Healthcare administrators coordinate career advancement for other healthcare professionals through promotion, continuing education, and professional development opportunities. They may provide support for scheduling or reimbursing workshops, seminars, or training programs. Healthcare administrators can often give resources on advanced degrees or certifications to ensure their team has contemporary knowledge and skills.

REASON #23: Problem-Solving and Analytical Skills

As a long-time nurse, I have been grateful to healthcare administrators who can quickly resolve issues or come up with creative decisions in unexpected situations. Healthcare administrators are in demand because they bring problem-solving and analytical skills to generate creative options and solutions to challenges. Healthcare administrators evaluate potential outcomes to ensure they can adapt to the quickly changing healthcare environment.

REASON #24: Changing Healthcare Industry

Healthcare administrators must address evolving factors in the healthcare industry driven by technology and policy changes. These challenging opportunities demand creative leadership. For example, as artificial intelligence increases, administrators must ensure that it is used effectively and address any ethical situations that could arise. Other updates include telemedicine and changes to electronic health records. Crucial initiatives include diversity, equity, and inclusion that create a skilled leader to support.

REASON #25: Demand for Improved Patient Satisfaction

One of the biggest reasons why healthcare administration jobs are in high demand is because they increase patient satisfaction by influencing policies that improve the experience, quality improvement efforts, and responding to patient concerns. Healthcare administrators provide improved patient satisfaction through streamlining processes, patient feedback, communication, and facility maintenance.


The ten states where healthcare administration jobs are in high demand range across the entire country. There are many options for those interested in the American Southwest mountain states. Arizona, Utah, and Nevada comprise the top three states for high demand for healthcare administration jobs. Texas is fourth, Tennessee is fifth, and New York state is sixth in need. Next come Massachusetts, Oregon, and Delaware. The tenth state is Iowa on the list of in-demand healthcare administration jobs.

Rank State 10-Year Job Outlook
1 Arizona +67.27%
2 Utah +46.15%
3 Nevada +43.06%
4 Texas +42.86%
5 Tennessee +42.76%
6 New York +42.13%
7 Massachusetts +38.63%
8 Oregon +37.72%
9 Delaware +37.50%
10 Iowa +37.44%
(Source: Careeronestop.org)


The top ten metropolitan areas with the highest demand for healthcare administration jobs are spread across the country. In Arizona, the Phoenix-Mesa-Scottsdale metro area tops the chart at number one, with a 10-year job outlook growing at 67.27%. The Texas metropolitans follow next. The second position goes to Dallas-Fort Worth-Arlington with a 10-year job outlook of 42.86%, while the third is Houston-The Woodlands-Sugar Land.

The fourth is New York-Newark-Jersey City, and the fifth is Boston-Cambridge-Nashua. California metropolitan Los Angeles-Long Beach-Anaheim comes in sixth, and San Francisco-Oakland-Hayward is seventh. Rounding out the top ten are Philadelphia-Camden-Wilmington at eight, Detroit-Warren-Dearborn at nine, and Minneapolis-St. Paul-Bloomington at ten.

Rank Metro 10-Year Job Outlook
1 Phoenix-Mesa-Scottsdale +67.27%
2 Dallas-Fort Worth-Arlington +42.86%
3 Houston-The Woodlands-Sugar Land +42.86%
4 New York-Newark-Jersey City +42.13%
5 Boston-Cambridge-Nashua +38.63%
6 Los Angeles-Long Beach-Anaheim +35.53%
7 San Francisco-Oakland-Hayward +35.53%
8 Philadelphia-Camden-Wilmington +33.20%
9 Detroit-Warren-Dearborn +31.54%
10 Minneapolis-St. Paul-Bloomington +29.05%
(Source: Careeronestop.org)


Healthcare administrators are in demand. However, there are many different roles that an administrator may choose. The five most in-demand healthcare administration jobs include the following:

1. Clinical Practice Administrator.

Healthcare administrators are in demand because they focus primarily on improving patient care quality and compliance with regulations in the outpatient setting. The clinical practice administrator oversees clinic, office, and specialty practice operations to ensure it runs smoothly and efficiently, from scheduling patient appointments to managing budgets. As health regulations become more strict, clinical practice administrators must ensure clinics maintain compliance while delivering efficient and quality care.

2. Hospital Administrator.

Hospital administrators enable hospitals to function by managing hospital operations, overseeing clinical and non-clinical staff, and ensuring effective processes. The demand for hospital administrators increases as the complex system of regulations and technologies grows. Operating duties include budgeting, managing staff, ensuring quality assurance, and supporting quality improvement.

3. Healthcare Program Manager.

Healthcare program managers are in demand because they plan, execute, and oversee healthcare projects and initiatives. As regulations change and diversity and equity initiatives emerge, healthcare administrators must support this policy growth. As healthcare policies evolve, the program manager must stay aligned with diversity, equity, and inclusion in patient care and staff growth. Healthcare program managers must make changes to stay ahead of the curve.

4. Pharmaceutical Project Manager.

A pharmaceutical project manager is crucial to the pharmaceutical industry because they are involved in various stages of drug development. These project managers are involved from early research to market release. They support clinical trials by liaising with regulatory bodies and managing all drug creation, management, and marketing aspects. Pharmaceutical project managers are fluent in ensuring that drug development processes are compliant, efficient, and safe.

5. Long-Term Care Administrators.

Long-term care administrators, sometimes called nursing home administrators, oversee the operation of all long-term care facilities, such as nursing homes and assisted living centers. These administrators are in demand because they observe the highest standard of care by ensuring compliance with regulations and laws. Long-term nursing home administrators ensure establishments are well-run and meet all necessary measures. As the baby boomer population ages and requires quality long-term care, the demand for these administrators grows accordingly.


I have personally seen the need for healthcare administrators in the contemporary healthcare market. If you still ask yourself, “Why are healthcare administration jobs in demand?” This article described the 25 biggest reasons why healthcare administration jobs are in high demand. The crucial roles healthcare administrators play highlight why this field needs skilled professionals who can quickly adapt to regulations, policies, and changes in the managerial landscape.

In conclusion, the need for healthcare administration jobs is soaring due to many different compelling factors. As healthcare organizations strive to improve their technology systems, improve patient outcomes, and enhance performance, healthcare administrators are crucial to supporting the mission of the team.

Caitlin Goodwin DNP, CNM, RN
Caitlin Goodwin is a Certified Nurse-Midwife who has been a nurse for 12 years, primarily in women’s health. She is passionate about caring for children with developmental disabilities, as her son has Autism Spectrum Disorder. She is currently working as a freelance writer and consultant and is passionate about advocating for her patients, students, and profession.