Healthcare
Administration
A Viable Career Option for the New Millennium
by Lynne Scroggins
Getting Ready
In the ever-changing healthcare administration profession, like in many other
specialized fields, you have to cross one hurdle at a time to achieve your goal.
Your undergraduate curriculum should include subjects such as accounting,
finance, organizational behavior, technology support, public speaking and basic
writing skills in order to have the basics for entering graduate school. It is
important to practice public speaking and business writing as often as possible.
Graduate school is important because most of the executives who rise to senior
management in a health care setting have a master’s degree in healthcare or
business. When choosing a graduate school, check the percentage of students
placed into residencies or mid-level management positions upon graduation. If
that percentage is 90 percent or above, its worth continued follow through to
see if the school would be a good match for you.
Stay busy during your summer vacation by working or volunteering in a
hospital or health care setting doing whatever you can. It will give you an
opportunity to " feel the pulse" of the organization and most likely
meet some interesting executives. There are several opportunities for summer
internships during your college career with our professional organizations. In
particular, the Institute for Diversity in Healthcare Management headquartered
in Chicago, IL, offers college and graduate students summer internships in
various cities. There are also several colleges and universities that offer
summer learning programs to students interested in the health care field. Check
with your placement office or just call around to some Medical Schools and
inquire about summer opportunities. You will likely be pleased with the outcome.
Healthcare Career Options
The very first job that most graduates seek after earning their master’s
degree is an Administrative Residency in the healthcare setting of your choice.
In this position, the resident learns about the organizational structure and
political culture of an organization. Each resident is assigned to an executive
level team member (often the CEO) and serves as their assistant for one year.
During that year, the resident is assigned projects that directly impact
hospital operations and are directed so that they may apply their formal
training in problem solving. This hands-on opportunity generally gives the
resident the unique opportunity to work directly with senior management in a
learning capacity. If you work hard and gain the respect of senior management,
the individual that leads you through this year of residency usually carries the
honor of your mentor/preceptor throughout your career. My mentor, Eugene Cashman,
CEO for LeBonheur Children’s Hospital in 1985, told me to use the hospital as
my laboratory for the one year of my residency. He encouraged me to
independently practice my management skills while he remained close enough to
guide me. Salaries for the Administrative Residency typically start around
$25,000 per year.
During
your residency, you will be able to decide if you would like a line management
or a staff role as your career foundation. Line management is the track to the
CEO’s position, while staff roles are organizational support functions such as
human resources or quality management. The CEO has to set the organization’s
strategic plan, understand customer service, master organization behavior and
rules of financial management to move the organization forward. Elliott Roberts (right),
retired CEO of the Medical Center of Louisiana in New Orleans and one of the
first African-American hospital administrators in the country, says students
considering the line management track may begin, after their administrative
residency, as a department or service line director. In a support role, one
usually develops one area of specialty or expertise. In Human Resources for
instance, you must understand things like labor laws, employee grievance
procedures, and payroll methods. There are even specific computer programs
designed specifically for human resource management like PeopleSoft, and it is a
great benefit to know how to operate such a system. Computer buffs may become
expert in Wide Area Network (WAN) or Local Area Network (LAN) development for
health care systems like Columbia/HCA or Tenet. There are also hospital finance
software packages that are designed for hospital/healthcare billing and accounts
receivable. Because of increased automation, the health care industry has
recognized technology as an integral hospital entity and many are recruiting for
Chief Information Officers (CIO), also a specialized staff role.
Managed Care companies are thriving all over the country and provide a
wonderful opportunity for recent graduates. The theory of the managed care
industry is to give individuals a limited choice of where they will receive
their medical care and negotiate with the healthcare providers to reduce their
cost of service to members of the managed care network. Many are also realizing
the importance of Long Term Care and its overreaching effects on our aging
population. Nursing Home/Assisted Living Care is one of the fastest growing
segments of the healthcare industry. As we see the never-ending media coverage
of patient abuse in the nursing home industry, there is a great need for
talented administrators to enter the field. The health care consulting industry
takes on a broad number of issues where expertise in every aspect of healthcare
operations is necessary. Many of the big ten firms in the country seek recent
graduates so that they can mold them into accomplished consultants. Usually when
a healthcare facility seeks the service of a consulting agency, they want the
agency to focus on one or two major challenges facing their particular facility.
Consultants must know how to work with all levels of health care delivery staff
and give formal professional advice in an effort to improve operational
effectiveness. Some other career areas of specialty include information
technology, marketing, architecture, financial management, food service
administration, medical records, pharmacy, engineering and of course, medical
personnel like physicians, nurses and adjunct therapists.
Minorities in the Executive Ranks
In 1997, the American College of Healthcare Executives (ACHE), the Institute
for Diversity in Healthcare Management and the National Association of Health
Services Executives (NAHSE), three large professional organizations representing
health administrators, performed a survey of 410 African Americans, 408
Caucasians, 264 Hispanics and 124 Asians about their career outcomes, factors
that might account for differences in those outcomes and respondents’
attitudes. It follows by five years, a similar survey by the ACHE and NAHSE in
1992, which documented dissatisfaction among minorities and a pronounced pay gap
between minorities and whites at similar levels in the organization. The 1997
study showed that minorities are well represented in the health care workforce
but have not entered the executive ranks in proportion to their numbers. The
study revealed that only about five percent of executive level healthcare
executives are African American. The number of top-level executives has not
changed significantly over the past five to ten years when comparing the 1992
and 1997 surveys. This is due to several factors, not the least of which is that
minorities eventually hit the glass ceiling of the hospital hierarchy and may
not be allowed to enter the executive ranks. Also, the healthcare industry is
rather conservative and has failed to encourage minorities into graduate and
executive-training programs. Also, hospital/healthcare consolidations increase
competition among talented hospital administrators.
Healthcare Trends
The healthcare field, both current and long term, is ever changing.
Healthcare continues to be one of the most passionately debated topics in our
society for a number of reasons which include the ever-increasing cost of
technology and medication, insurance issues related to covered services, the
struggle to remain profitable in this tumultuous climate, the medicare and
medicaid crisis, and more. Keep in mind that even a healthcare facility must
cover the cost of providing care plus generate some surplus in dollars to keep
the organization viable. This has become very difficult with managed care,
medicare and medicaid reductions, and hospital mergers coupled with the
increasing costs of providing care. For the past ten years, healthcare
organizations have been reshaping themselves; merging, acquiring, aligning, and
partnering – positioning themselves to provide quality services and remain
viable. Health care experts point out that these factors continue to set the
challenge, even for the new millennium.
Networking
Networking
is an opportunity to interact on a personal level with individuals in your area
of interest. I cannot stress enough the importance of networking. Allison
Wright, M.P.H. (left), a recent graduate of the master’s program at
Southern University in Baton Rouge, says, "You must seize any opportunity
which provides a setting in which you will be exposed to established
African-American health care professionals." Every job opportunity that I
have had has been enhanced by the result of networking and mentorship. To know a
person in the company that you want to be a part of is extremely beneficial as
your career moves up through the years. Organizations like the National
Association of Health Service Executives (NAHSE) at www.NAHSE.org and The
Institute for Diversity in Health Care Management at
www.institutefordiversity.org cater to the needs of students interested in
making health administration their career. Scholarships and summer internships
are offered to talented students by these organizations.
The premier health administration organization for all administrators is the
American College of Health Care Executives (ACHE) at www.ACHE.org where you have
an advancement tract which leads to getting credentials in the field. Also,
read, read, read every healthcare article and journal that you can possibly
read. Keeping abreast of trends in the health care industry is of utmost
importance. Researching the organization that you want to join is essential.
Many professional health care organizations publish journals and newsletters.
There are also many healthcare trade journals like Modern Healthcare, Hospitals
and Health Networks and Healthcare Executive. Many healthcare organizations
subscribe to these publications and are members in the professional
organizations listed above. Just to know someone in the organization can provide
access to these opportunities. Robert
Currie, CHE, national president of NAHSE says, " involvement in a
professional association such as NAHSE creates opportunities for students to
develop lifelong relationships with seasoned African-American healthcare
executives. These relationships lead to mentorships and career
opportunities." Business etiquette is also a key component in achieving
career success. Walter McLarty, vice president of Human Resources at Ochsner
Foundation Hospital in New Orleans, says, " The most important attribute
that each of us has is our attitude - it is also the one thing that we have
control over and ultimately determines our professional outcomes." As you
leave one job, don’t burn bridges. There is nothing better than an outstanding
recommendation from your old boss or professor.
Final Reflections
After interviewing many African-American healthcare executives across the
country, I found that there were no glamour stories about their rise to success.
There were only lessons to be learned of hard work, determination and careful
planning. A true passion exists in these individuals to ensure that quality
healthcare is provided to all. They also know that it would be wonderful if
diversity in health care management was reflective of the diverse communities we
are charged to serve. Though the outlook for hospital and healthcare services
continues to remain uncertain, we can be sure that the need for quality services
will continue to be ever present. To make a prediction about the future of the
health care industry would be futile because health care issues will continue to
be heavily debated. Probing questions such as the following remain unanswered.
Will physicians unionize? Will medicare reform take on a positive direction?
Will hospital mergers continue? Or, will all patients receive one quality level
of health service regardless of their ability to pay? These and many other
challenging questions will continue to be debated into the next millennium.
Therefore, if you choose healthcare administration as your career goal, buckle
up and get ready for an exciting ride!
Lynne Scroggins is a
regional administrator in the Office of Mental Health, Louisiana Department of
Health and Hospitals in New Orleans, LA.
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