2.03 (R) [INFO] Topic 1. Healthcare Administration versus Healthcare Management
Topic 1: Is there a difference between healthcare administration and healthcare management? Yes, and no. Yes, in the sense that one is generally considered to have more responsibility for the organization as a whole than does the other. No, in the sense that the terms are often used interchangeably and that there is no general agreement as to which one (administration, management) has the broader organizational responsibility. For the purposes of this course, healthcare administration has more responsibility for the healthcare organization than does healthcare management. This course is more concerned with healthcare administration than healthcare management. This section discusses: Healthcare Administration Healthcare Management Illustrating the Difference between Administration and Management Healthcare Administration/Management Degrees Healthcare Administration/Management Fellowships Note [FUN]: Links within this section lead to external [FUN] readings not needed for the certificate work. You do not have to visit these external links. Do so only if you have the interest and the time. Note [CERT]: Pay attention to the text in bold. It just may be included on the [CERT] Lesson Two Quiz. Healthcare Administration Healthcare administration encompasses responsibility for all aspects of a healthcare organization. The focus is both internal to the organization and external to the organization to maximize the efficient and effective operation of the organization as a whole and its survival both short-term and long term. Healthcare administrators make decisions about the direction and operation of the healthcare organization. The role of the healthcare administrator is more strategic than tactical. A strategy involves the identification of broad goals – primarily long-term goals - and a plan to achieve them. A strategy is dynamic; it is changed as conditions change. The development of a good strategy needs to acknowledge the situation best described by Donald Rumsfeld (and often quoted) in a February 12, 2002 Department of Defense news briefing: "As we know, there are known knowns. There are things we know we know. We also know, there are known unknowns. That is to say, we know there are some things we do not know. But there are also unknown unknowns, the ones we don't know we don't know." Strategies must adapt as the conditions change as well as when the knowns and unknowns are clarified. The strategic goals of an organization are often published in an organization's strategic plan. For example, the Massachusetts General Hospital (MGH)/Massachusetts General Physicians Organization (MGPO) Strategic Plan adopted in 2014 lists twelve key strategies (strategic goals): Redesign the model of care Center-based care Population health management Transform chronic disease care Strategic service expansion and network development An MGH Research Institute as a welcoming front door for industry and philanthropy Facilitate translational research Optimize clinical education across the health professions Leverage the power of MGH patient data Workforce development Intensify diversity and inclusion efforts Stronger internal governance There are many published articles and reports on an organization's strategic goals and strategic planning. Some of them are listed below. You may find some or all of them interesting. Each is optional; you do not have to read it. They are: Your Strategic Plans Probably Aren't Strategic, or Even Plans Amgen Strategy American Hospital Association (AHA) Strategic Plan Stanford Medicine Integrated Strategy 2020 Vision: A Strategic Plan for Columbia University College of Physicians and Surgeons Healthcare Management Healthcare management encompasses responsibility for the day-to-day operations of a part of the healthcare organization – an organizational unit (e.g., department, division). Healthcare managers implement the decisions of healthcare administrators with a primary focus on the activities of personnel and distribution of resources (e.g., expenditures) in a specific unit. The role of the healthcare manager is more tactical than strategic. Tactics are well-defined concrete steps/initiatives using specific resources to achieve the specific tasked objectives required to implement the strategy (implement the plan). Although the implementation of the tactics does not necessarily require a broad view of the organization, such a broad view is helpful for keeping the tactics consistent with the strategy. Illustrating the Difference between Administration and Management The difference between the two terms (administration, management) can be illustrated by the difference between the responsibilities of marketing versus the responsibility of sales; healthcare administration is more like marketing and healthcare management is more like sales. In large organizations, the individuals responsible for administration may be clearly differentiated from those with responsibility for management. The smaller the organization, however, the more likely a few people (or one person) assumes responsibility for both administration and management. In a small start-up company for example, one person may be developing a marketing strategy while also making sales calls. In a small start-up company, one person may be developing a strategic plan or a business plan for the start-up (administration) while also directly managing and motivating software developers (management). Over the course of a career in administration/management, professionals may find their responsibilities shift between administration and management a number of times. Healthcare Administration/Management Degrees Another question for those interested in healthcare administration/management who wish a bachelor's degree or master's degree in this area is whether to get a health-related degree or a business degree. For example, should you get a bachelor's degree in health (healthcare, health services) administration or a bachelor's degree in business (perhaps with a healthcare organization focus)? Should you get a master's degree in health (healthcare, health services) administration (MHA) or a master's of business administration (MBA) perhaps with a healthcare organization focus? The answer is not an easy one. And the right answer for you may not be the right answer for someone else. The business degree provides a broad view of administration/management applicable to all organizations. The health-related degree focuses on the administration/management of healthcare organizations specifically. Even if the business program has a concentration area in health, the focus is not as comprehensive as that found in a health-related degree program. Business degree programs are usually located within a college or university's business school. Such programs can seek accreditation from the Association to Advance Collegiate Schools of Business (AACSB) International or the Accreditation Council for Collegiate Business Schools and Programs (ACBSP). These programs are classified by the National Center for Education Statistics (NCES) in the Classification of Instructional Programs (CIP) in Category 52: Business, Management, Marketing, and Related Support Services, usually with the specific code of 52.0201: Business Administration and Management, General. Health-related administration programs are usually located within a college or university's health sciences or medical school. Such graduate-level programs can seek accreditation from the Commission on Accreditation of Healthcare Management Education (CAHME). These programs are classified by NCES in the CIP in Category 51: Health Professions and Related Clinical Sciences, usually with a specific code of either 51.0701: Health/Health Care Administration/Management or 51.0702: Hospital and Health Care Facilities Administration/Management. Healthcare Administration/Management Fellowships Many health-related organizations offer healthcare administration/management fellowships primarily for those who have a master's degree. A list of these fellowships can be found at the American College of Healthcare Executives (ACHE) Directory of Postgraduate Administrative Fellowships. A few of the specific programs are listed below: Cleveland Clinic Administrative Fellowship Johns Hopkins Administrative Fellowship Kaiser Permanente Administrative Fellowship Massachusetts General Hospital Administrative Fellowship Mayo Clinic Administrative Fellowship
Note [FUN]: The video for Topic 1 - Massachusetts General Hospital (MGH) Administrative Fellowship: Program Overview - is a YouTube video produced by MGH. Many consider the USPHS to be an essential health system component in the United States. The video provides an overview of the program and career advancement opportunities.
