Challenges in the Field Of Health Administration

The health care system in the U.S. is a massive enterprise comprising thousands of hospitals and post-acute care facilities. There are thousands of insurance companies, which consist of millions of people in this industry alone. But still, an estimated one out of six Americans lack health insurance coverage. While the industry is highly competitive, it is also very costly and complex to manage. The industry spends almost $1 trillion per year, making it one of the largest sub-sectors in the U.S. economy.

Health care expenditures may exceed more than double over the next 25 years. However, the main challenge in this industry is to decrease costs and increase access to high-quality, cost-effective medical care. In order to achieve this goal, there needs to be a stronger emphasis on quality improvement and productivity through reengineering processes and reducing waste, fraud, and abuse.

The healthcare industry employs several workers, including physicians, nurses, pharmacists, paramedics, physical therapists, etc. It is essential to recognize the importance of the health care industry to the economy and society as a whole. It is also necessary to understand the demand for health care workers, the complex issues that face managers in these fields, and the various ways managers can impact this industry.

Let’s take a look at the challenges and ways to overcome in the field of health administration:

Addressing the Rising Cost of Healthcare:

The industry needs to emphasize the quality of care provided while simultaneously decreasing costs. There is a growing demand for health services, but at the same time, it is becoming more and more difficult for patients to pay for these services. There is a need to control costs while at the same time improving access.

The health care industry is rapidly growing with many employment opportunities. Suppose you’re looking to join the ranks of this fast-paced field. In that case, earning your degree could be just what may set you apart from other candidates within this niche. Hence, a master in health administration is an excellent way to further your career and improve the lives of others.

A significant challenge that health care administrators face is how to provide quality and accessible services while spending less on administrative costs. It is essential to determine the best way to provide care and the most effective way to organize costs. Also, there needs to be a focus on working with new technologies like electronic medical records and emphasizing patient-centered care.

Reducing Waste and Fraud:

It is essential to the industry that there may be a focus on reducing waste and fraud. The best way to do this is to reduce the administrative costs of the health care system. For example, there needs to be a focus on reducing the number of excessive tests and procedures performed and decreasing duplicate processes. There may also be a focus on preventing errors and a need to utilize resources effectively.

Administrators also have a role in ensuring that the health care system is safe from fraud, waste, and other abuses. Health care fraud costs the country a significant amount of money each year, and it is up to administrators to ensure that these types of crimes do not occur.

Working with Demographic Changes:

It is essential to understand that there are changes taking place within the workforce. According to the United States Department of Health and Human Services, over one-third of the population in the United States is living with one or more chronic health conditions. The baby boomer generation, which consists of people born between 1946 and 1964, makes up 21.45% of the population. There needs to be a focus on how this age group is cared for. In the next ten years, many of these individuals will retire and leave the workforce. Therefore, health administrators will need to focus on finding ways to replace these workers.

Managing a Regulatory Environment:

Administrators face challenges as they work with the regulatory environment. They push for health care policy changes and attempt to create new legislation that may significantly impact all managers within the industry. It is often challenging to keep up with all new rules and regulations, but it is essential to comply. Ensuring that all of the legal requirements are met is extremely important.

Administrators need to focus on ensuring that providers and patients have access to information about the quality of care. This information needs to be up-to-date and accurate, so managers must stay on top of all changes within the field.

Administrators need to ensure that they have access to the latest training and information regarding health care. It is essential to know about changes that are taking place within the industry. There is a need for managers to have at least an undergraduate degree in order to get a managerial job. However, there is also a strong need for practical experience.

Administrators may also want to focus on developing skills in computer technology, finance, and marketing. The development of personal skills is also essential. It will be helpful for managers to have excellent communication and leadership skills to be successful.


The field of health care administration heads towards an eternal challenge. However, as with any industry, there are ways to overcome these obstacles and get the job done well from start to finish.

The value that society places on healthcare workers never changes. However, the most fundamental step towards success for many healthcare administrators starts before even stepping foot into work: being prepared mentally. Besides, many opportunities await aspiring professionals while it is possible to focus on various areas.