How to Become a Health Services Manager: Salary & Career Paths for 2025?

Co-Founder and Chief Data Scientist

Health services managers are essential to the success of healthcare organizations, with their leadership directly impacting the quality, efficiency, and coordination of patient care. As 23% of the United States population is expected to be 65 or older by 2050, many current healthcare leaders will reach retirement age, creating a growing demand for new professionals who can guide the industry through evolving policies, technologies, and care needs. Whether you're advancing through the ranks as a healthcare professional or transitioning from another field, this guide will show you how to enter and grow as a health services manager.

Key Things You Should Know About a Health Services Manager

Health services managers plan, coordinate, and direct the daily operations of medical facilities, departments, or practices to ensure efficient, high-quality patient care.
These managers liaise between medical staff, administrators, patients, and insurers to balance clinical priorities with business goals and regulatory requirements.
With healthcare needs rising and many current managers nearing retirement, job growth in this field is projected to increase much faster than the average for all occupations.

What does a health services manager do?
What degree do you need to become a health services manager?
Do health services managers need a license to practice?
What are common career paths for health services managers?
Where do health services managers typically work?
How much does a health services manager make?
What is the job outlook for health services managers beyond 2025?
What are the biggest challenges health services managers face?
Can Accelerated Degree Programs Enhance Career Advancement in Healthcare?
How can professional certifications enhance career advancement?
Is prior healthcare experience necessary to become a health services manager?
What skills are required to succeed in health services management?
How can I access affordable training opportunities in healthcare?
Other Things You Should Know About Becoming a Health Services Manager

What does a health services manager do?

A health services manager, also referred to as a healthcare administrator or executive, is the strategic backbone of any medical organization. These professionals play a pivotal role in ensuring that healthcare facilities operate efficiently, legally, and in alignment with modern standards of care. From entire hospitals to specialized departments, health services managers oversee the people, processes, and policies that make quality care possible.

At the core of their role is planning, directing, and coordinating health services. Whether managing a multi-specialty clinic or a single hospital department, they develop goals and implement strategies to improve the delivery of care. They constantly adapt to changes in healthcare laws, technology, and regulations, ensuring compliance while pushing for innovation.

Key responsibilities of health services managers include:

Prepare, manage, and monitor departmental or facility budgets.
Organize staff schedules to ensure adequate coverage and efficiency.
Recruit, hire, and train healthcare personnel.
Facilitate clear communication across departments and with stakeholders.
Serve as a liaison between medical staff, patients, insurance providers, and governing boards.
Balance clinical needs with administrative and operational priorities.

Depending on their setting or specialty, their focus may vary. For example:

Nursing Home Administrators: They are responsible for every aspect of resident care, including staffing and facility maintenance.
Clinical Managers: They lead departments like surgery or rehabilitation and tailor their oversight to specific medical disciplines.
Health Information Managers: These professionals manage sensitive patient data, ensuring privacy, accuracy, and seamless system integration. Earning a traditional or online MBA information systems degree can be especially valuable for this role, as it combines business leadership with advanced knowledge of data management and healthcare technologies.

What degree do you need to become a health services manager?

To become a health services manager, most professionals start with at least a bachelor’s degree, typically in a healthcare-related or business field. While a bachelor's degree is the standard entry point, the level of education required can vary depending on the employer and the role. Some organizations may accept candidates with an associate’s degree and relevant experience, while others may favor or require a master’s degree for leadership or specialized positions.

Many successful health services managers also gain on-the-job experience in clinical or administrative settings, which can sometimes compensate for formal education in the eyes of employers.

Common degree paths for health services managers include the following:

Bachelor’s in Health Administration or Health Services Management: A health administration degree offers foundational knowledge in healthcare systems, policy, and organizational leadership.
Bachelor’s in Nursing (BSN): Combines clinical expertise with healthcare operations; often pursued by nurses moving into management.
Bachelor’s in Business Administration (BBA): Focuses on budgeting, human resources, and strategic planning, applicable to healthcare operations.
Master of Health Administration (MHA) or Master of Public Health (MPH): Preferred for advanced or executive roles; includes courses in healthcare law, ethics, informatics, and finance. A master of public health degree will also qualify you for a position as public health administrator. But what does a public health administrator do? Find out from our separate article on the topic.
Health Information Management Degree: Prepares students to oversee electronic health records and ensure data accuracy and privacy compliance.

Although a background in healthcare management or administration offers a strong advantage when pursuing a career as a health services manager, the number of degrees awarded in this field has been declining. In 2022, approximately 30,702 degrees were awarded—a 2.33% decrease from the previous year. Below are the top institutions that granted the most degrees in healthcare management and administration in 2022:

Insitutions that awarded the most healthcare management and administration degrees in 2022

Do health services managers need a license to practice?

Licensing requirements for health services managers depend largely on the type of facility they work in and the state in which they practice. While not all roles in health services management require a license, certain positions do, especially those in regulated environments. Below are some examples:

Nursing Home Administrator: All states require nursing home administrators to be licensed. Requirements typically include a bachelor’s degree, completion of a state-approved training program, and passing a national and/or state exam.
Clinical Manager (with Nursing Background): Clinical managers who are also registered nurses must hold an active RN license. This is essential when overseeing nursing departments or making clinical decisions.
Social Services Manager (in Healthcare Settings): Those managing healthcare-related social work services may need to be a licensed clinical social worker (LCSW or equivalent), depending on the role and state regulations.

What are common career paths for health services managers?

Those looking for non clinical healthcare careers may want to become a health services manager. They have diverse career opportunities across various healthcare settings, depending on their education, experience, and area of specialization. Here are some of the most common career paths:

Hospital Administrator: Hospital administrators oversee entire hospital operations, including budgeting, staffing, patient services, and compliance with healthcare laws. They often work in large, complex environments and are responsible for strategic planning and executive decision-making.
Nursing Home Administrator: These professionals oversee long-term care facilities, managing resident care, staffing, financial operations, and facility maintenance. For individuals without a nursing background who are interested in this path, direct entry MSN programs for non-nurses online can provide a streamlined route to gaining the necessary clinical and leadership skills. Licensure is required in all states for this role.
Clinical Manager: Clinical managers lead specific departments such as surgery, cardiology, or emergency care. They focus on staffing, resource allocation, and coordination of clinical services within their unit while ensuring quality and regulatory compliance.
Practice Manager: Practice managers oversee the business and administrative functions of a medical practice or group of physicians. They handle scheduling, billing, hiring, and day-to-day operations to keep the practice running smoothly.
Health Information Manager: Specialists in this role manage patient data systems and ensure the privacy, accuracy, and accessibility of health records. They typically work in hospitals, clinics, or health IT companies and may hold certifications in health informatics. Check out our medical records manager career guide here.

Where do health services managers typically work?

Health services managers are essential to the efficient delivery of care across a variety of healthcare environments. In 2023, they held over 500,000 jobs in the United States, underscoring the growing need for leaders who can manage complex operations and support high-quality patient services.

During the same year, 30% of health services managers were employed in hospital settings, where their expertise is crucial for overseeing large teams, streamlining processes, and ensuring compliance in fast-paced, high-demand environments. But beyond hospitals, health services managers also work in a wide range of other facilities and sectors, as shown below.

How much does a health services manager make?

In 2023, health services managers earned a median annual salary of $110,680, making it a financially rewarding career path. This figure is about 8% higher than the median pay for other management occupations, reflecting the high level of responsibility and specialized knowledge required in healthcare leadership.

However, actual earnings can vary significantly based on several key factors:

Location: Salaries tend to be higher in metropolitan areas or states with a high cost of living. Regions with a strong demand for healthcare professionals also typically offer more competitive pay.
Education: Education plays a significant role in determining the earning potential of a health services manager. While a bachelor’s degree is typically the minimum requirement, those who pursue advanced degrees, such as MHA, MBA with a healthcare focus, or even one of the easiest MPH programs to get into, often qualify for higher-paying leadership roles and more specialized positions in the healthcare industry.
Industry: Health services managers working in hospitals or specialized care facilities often earn more than those in smaller practices or administrative roles.
Experience Level: The number one secret for how to become a manager, in general, is to amp up your experience. And, as with most careers, professionals with more years of experience or advanced degrees typically command higher salaries, especially in senior or executive roles, as shown below:

What is the job outlook for health services managers beyond 2025?

The job outlook for health services managers remains exceptionally strong well beyond 2025. Based on the latest data from the U.S. Bureau of Labor Statistics, employment in this field is projected to grow by 29% from 2023 to 2033, which is significantly faster than the average for all occupations. This growth reflects ongoing expansion in healthcare services, an aging population, and increasing demand for efficient healthcare delivery.

On average, about 61,400 job openings for medical and health services managers are expected each year throughout the decade. These openings will arise not only from new job creation but also from the need to replace professionals who retire or transition to other careers.

What are the biggest challenges health services managers face?

Health services managers play a critical role in keeping healthcare systems running smoothly, but the position comes with a unique set of challenges. Below are some of the challenges they face in the field:

Regulatory and Policy Changes: Constant updates to healthcare laws, insurance requirements, and compliance standards make it challenging for managers to stay current and ensure their organizations remain in full compliance.
Staffing Shortages and Retention: Recruiting and retaining qualified healthcare staff remains a major issue, especially as many professionals approach retirement age. This adds pressure on managers to maintain service quality with limited resources.
Budget Constraints: Balancing high-quality patient care with financial sustainability is an ongoing challenge. Managers often face difficult decisions about staffing, equipment, and service offerings within tight budgets.
Technology Integration: Implementing and managing health information systems, electronic health records (EHRs), and other technologies requires both technical know-how and staff training, often with limited time and support.
Burnout and High Stress Levels: The emotional and mental demands of coordinating care, managing teams, and responding to emergencies can lead to burnout, especially in high-stakes environments like hospitals.
Workplace Injuries and Illnesses: Despite being in a leadership role, health services managers face a surprisingly high rate of workplace injuries. In 2020, there were 13,750 reported nonfatal injury and illness cases, placing them among the top 25 professions for such incidents. Common causes include slips, falls, and overexertion, often due to fast-paced, high-pressure environments. The jobs with the highest nonfatal and illness rates are shown below.

Can Accelerated Degree Programs Enhance Career Advancement in Healthcare?

Accelerated degree programs can provide a streamlined pathway to acquire specialized competencies and elevate leadership capabilities in a competitive healthcare landscape. These programs are designed to help professionals integrate advanced operational, financial, and clinical management skills in a shortened timeframe. For instance, individuals interested in a complementary focus on pharmaceutical operations might consider exploring best accelerated PharmD online programs to gain an in‐depth understanding of medication management and regulatory challenges. This targeted educational approach can serve as a catalyst for expanding one’s expertise and enhancing overall career prospects while reinforcing proficiency in both management and clinical contexts.

How can professional certifications enhance career advancement?

In a dynamic healthcare environment, professional certifications validate specialized competencies and demonstrate a commitment to continuous learning. They offer targeted expertise in areas such as regulatory compliance, digital integration, and financial oversight, thereby strengthening managerial profiles. Additionally, acquiring certification in medical administrative skills can signal readiness for higher responsibility and leadership roles. For candidates seeking practical, cost-effective training in essential technical areas, enrollment in affordable online medical billing and coding courses can further enhance professional credibility and readiness for advanced challenges.

Is prior healthcare experience necessary to become a health services manager?

Prior healthcare experience is not always a strict requirement to become a health services manager, but it can significantly enhance your qualifications and ability to succeed in the role. Employers often value candidates who understand the complexities of healthcare settings, especially those who have worked in clinical or administrative roles. This experience helps managers make informed decisions, communicate effectively with medical staff, and navigate the fast-paced, highly regulated nature of healthcare environments. For example, being a healthcare coordinator is a good starting point for your career if you are aiming for a future leadership role in the healthcare industry. Healthcare coordinator salary is not a lot, so taking advanced studies and moving up the ladder allow you to increase your earning potential.

Some of the most common pathways into health services management include:

Transitioning from clinical roles such as nursing or allied health.
Moving up from administrative positions in hospitals or clinics.
Entering the field with a business or public health background, supplemented by healthcare coursework or practical training.

That said, individuals with strong leadership or business backgrounds can also enter the field, especially if they hold relevant degrees in health administration or related disciplines. Earning an affordable online MBA healthcare management can further strengthen their qualifications and open doors to leadership roles. In such cases, internships, residencies, or entry-level positions in medical offices or hospital departments can serve as valuable stepping stones to management careers.

What skills are required to succeed in health services management?

Success in health services management hinges on a well-rounded blend of leadership, analytical thinking, and interpersonal skills. Health services managers are tasked with overseeing both people and processes in high-stakes environments, which requires not just technical know-how but also the ability to lead with empathy and strategic foresight. Below are the essential skills for health services managers:

Leadership and Team Management: Managers must inspire, guide, and coordinate healthcare teams across departments. This involves conflict resolution, performance evaluation, and staff development.
Communication and Collaboration: Clear communication with medical professionals, support staff, insurance representatives, and patients is vital. Managers need to translate complex policies and decisions into practical, actionable language.
Problem-Solving and Critical Thinking: From operational challenges to regulatory issues, managers need to make quick, data-informed decisions under pressure while maintaining quality and compliance.
Financial and Budgeting Skills: Managing budgets, tracking expenses, and overseeing billing processes are core functions, especially in facilities operating with limited resources or under strict reimbursement models.
Knowledge of Healthcare Laws and Regulations: Understanding HIPAA, Medicare/Medicaid policies, and other legal requirements ensures the organization operates within compliance standards.
Technical Proficiency: Familiarity with health information systems, electronic medical records (EMRs), and data analytics tools is increasingly essential for managing both patient data and operational performance.
Adaptability and Innovation: The healthcare landscape is constantly evolving. Managers must be open to change and able to lead digital transformation, process improvements, and shifts in care models.

The World Economic Forum’s 2023 Future of Jobs report found that creative thinking and analytical thinking are the top two skills expected to grow in importance, according to business leaders worldwide. These skills are increasingly valued as organizations adapt to rapid technological and workplace changes, as shown below.

What Do Graduates Say About Being a Health Services Manager

Choosing a career in health services management has been a transformative decision. I gained the expertise to drive significant organizational change while improving patient care delivery. My daily work is rewarding both professionally and emotionally, knowing that each strategic decision positively impacts lives. Adaline
Being a health services manager offers a perfect blend of operational challenges and the opportunity to make a measurable difference in community health. The role has empowered me to lead innovative initiatives, fostering a culture of excellence across healthcare settings. Timothy
Pursuing a career in health services management has granted me the unique chance to integrate administrative rigor with compassionate care, ultimately enhancing patient outcomes. Witnessing the tangible impact of my work on team morale and operational efficiency fills me with immense pride. Chris

How can I access affordable training opportunities in healthcare?

Affordable training programs provide a cost-effective entry point into the healthcare field by equipping aspiring managers with practical administrative and supportive clinical skills. These programs can serve as a bridge toward more advanced roles, offering essential insights and real-world application without the high initial expenditure. In addition, exploring options such as cheap online medical assistant programs can help candidates build a solid foundation while minimizing financial barriers.

Key Findings

In 2023, hospitals employed the largest share of health services managers, accounting for 30% of the workforce in this field.
Entry-level health services managers can earn approximately $114,500 per year.
From 2023 to 2033, employment for medical and health services managers is expected to grow by 29%, significantly faster than the average for all occupations.
Health services managers experience one of the highest rates of nonfatal occupational injuries among all professions.
In 2022, 30,702 degrees were awarded in healthcare management or administration, a 2.33% decline compared to the previous year.

Other Things You Should Know About Becoming a Health Services Manager

Is health services management a good career?

Yes, health services management is a strong and rewarding career choice, offering competitive salaries, job stability, and the opportunity to make a meaningful impact on patient care and healthcare operations. The demand for skilled healthcare managers is growing rapidly, with the U.S. Bureau of Labor Statistics projecting a 29% job growth from 2023 to 2033. It’s an ideal path for individuals who enjoy leadership, problem-solving, and working in a fast-paced, evolving industry. The role also offers diverse opportunities across various healthcare settings.

How many years does it take to become a health services manager?

Becoming a health services manager typically takes about 4 to 6 years, depending on your educational path. Most positions require at least a bachelor’s degree, which takes around four years to complete. However, many professionals pursue a master’s degree in health administration, public health, or business, which can add another one to two years. Gaining relevant experience through internships or entry-level roles during or after school can also influence your timeline.

How do I become a healthcare manager with no experience?

If you’re starting with no experience, focus on gaining education in a related field like healthcare administration, public health, or business. Entry-level roles in medical offices, clinics, or hospitals—such as administrative assistant or office coordinator—can provide valuable exposure and a stepping stone into management. You can also consider certifications or continuing education, and enrolling in programs such as an affordable online MBA in healthcare management to strengthen your qualifications. Networking and mentorship within the healthcare field can also accelerate your career path.

References:

HRSA. (2024, November). State of the U.S. health care workforce, 2024. Bureau of Health Workforce - Health Resources and Services Administration. Retrieved April 12, 2025.
Salary.com. (2025, April 1). Employee health services manager salary in the United States. Salary.com.. Retrieved April 11, 2025.
U.S. BLS. (2024, April 3). Occupational employment and wages, May 2023: 11-9111 medical and health services managers. U.S. Bureau of Labor Statistics. Retrieved April 11, 2025.
U.S. BLS. (2024, August 29). Occupational outlook handbook: Medical and health services managers. U.S. Bureau of Labor Statistics. Retrieved April 11, 2025.
WE Forum. (2023, May 1). Future of jobs 2023: These are the most in-demand skills now and beyond. World Economic Forum. Retrieved April 12, 2025.