Like most organizations and companies, healthcare facilities require experts in finances to help them make sound financial decisions. This article explores the careers of financial managers, financial analysts, and accountants in relation to health care.
According to the U.S. Bureau of Labor Statistics (BLS), most finance professionals in all industries, including healthcare, require a bachelor's degree from an accredited finance program. These areas can include accounting, economics, business administration or finance. However, because of the increasingly competitive nature of these positions, employers may look for candidates who also have advanced degrees, especially for senior or managerial positions. A master's degree in business administration, finance or economics prepares students for complex financial analysis and makes them better qualified in the workforce.
|Career||Accountants and Auditors||Financial analysts||Financial managers|
|Education Requirements||Bachelor's degree||Bachelor's degree||Master's degree|
|Other Requirements||Optional certification||Optional certification||5 years of experience|
|Projected Job Growth (2018-2028)*||6%||6%||16%|
|Median Salary (2018)*||$70,500||$85,660||$127,990|
Source: *U.S. Bureau of Labor Statistics
Healthcare finance jobs vary significantly and are available in every kind of healthcare facility, from hospitals to physician offices and nursing care facilities. Though the BLS stated that overall job growth for financial accountants and analysts was expected to grow 6% between 2018 and 2028, entry into the field could be difficult and might be improved with professional certification and a graduate degree.
Accountants and Auditors
Accountants and auditors make sure healthcare organizations have accurate financial records and pay proper taxes. They also help with general financial planning. Many healthcare organizations require accountants to be licensed by the state as Certified Public Accountants (CPAs). According to the BLS, accountants and auditors made a median salary of $70,500 per year in 2018. The BLS projects that accountants and auditors will experience a 6% job growth from 2018 to 2028, which is about as fast as average for all occupations.
Financial analysts in healthcare make investment recommendations for their organizations. They study financial statements and other factors to determine the organization's value and future earnings. They also determine the financial feasibility of proposed healthcare services. In May 2018, the BLS stated that financial analysts made a median annual salary of $85,660. The BLS projects that this group of workers should grow by 6%, which is as fast as average, during the 2018-2028 decade.
Financial managers are high-level finance experts who help healthcare organizations prepare necessary financial reports, make investment decisions and develop long-term financial strategies. A master's degree plus significant knowledge of the healthcare industry is often required for this position. Job growth for financial managers is expected to be 16% during the 2018-2028 decade.
The Healthcare Financial Management Association (HFMA) offers certification to its members who are looking to advance their careers and who have 3-5 years of management experience in the healthcare industry. BLS statistics in May 2018 reported that financial managers had a median annual salary of $127,990.
Hospitals, clinics, and private healthcare offices all hire financial specialists to help facilities run within budget. While job growth is expected both in the financial and medical fields, the higher financial compensation for these positions attracts more applicants, leading to stiffer competition. The best way to create an appealing profile to potential employers is to hold higher education degrees and certificates, as well as a thorough understanding of the healthcare industry.