Students interested in pursuing a career that allows them to help medical care facilities such as hospitals, long-term care facilities, and nursing homes plan and oversee their budgets may gravitate toward jobs in healthcare finance. Healthcare financial analysts perform a variety of financial duties, including preparing financial reports, analyzing spending, and developing strategies to streamline expenditures and improve a facility’s bottom line.
Aspiring healthcare financial analysts must start by developing the knowledge they’ll need to be successful. Completing an educational program, such as a Graduate Certificate in Healthcare Administration, can prepare graduates with the skills required to pursue jobs in the field.
What Does a Healthcare Financial Analyst Do?
The healthcare financial analyst job description can vary based on the size of the organization an individual works for, but many facets of the position remain the same. The primary role is to guide medical institutions on cost savings and profit enhancement opportunities. Other common job duties may include the following:
- Providing financial summaries designed to guide decision-making
- Devising strategies for cost reduction and revenue growth
- Monitoring monthly spending
- Measuring financial performance against financial operating plans
- Preparing graphs and presentation materials
- Researching the potential impact of operational changes to departmental and institutional budgets
- Preparing profit and loss (P and L) reports
- Forecasting operational expenses
- Gathering, assessing, and interpreting financial data, such as accounts payable and accounts receivable data, income statements, balance sheets, and cash flow statements
- Providing recommendations designed to help facilities reduce their healthcare delivery costs
- Making recommendations about cost allocations
- Communicating findings and recommendations to various stakeholders, such as department heads, the board of directors, and healthcare administration staff
Where Do Healthcare Financial Analysts Work?
Healthcare financial analysts work at medical care facilities throughout the United States, and job opportunities are available in a variety of settings, such as nursing homes, hospitals, hospice care centers, specialized care centers, and regional medical centers.
Although most professionals work 40 hours per week, Monday through Friday, overtime may be required when a facility is developing departmental budgets for the upcoming fiscal year. Most healthcare financial analysts work on-site, but some organizations allow part- or full-time remote work.
Qualifications to Become a Healthcare Financial Analyst
Most positions require candidates to have earned at least a bachelor’s degree in a related field, such as accounting or finance. However, candidates who have completed an advanced education, such as a graduate certificate or master’s degree, are likely to have the best job prospects.
Other qualifications to become a healthcare financial analyst include the following:
- Between two and four years’ relevant accounting or finance experience
- Financial literacy
- Experience with financial software, such as QuickBooks, Oracle NetSuite, Sage Intacct, or Striven
- Fluency in using spreadsheet software and database applications
- Strong written and verbal communication skills
- Effective time management skills, including the ability to meet deadlines
- Strong analytical and problem-solving capabilities
Although not required, joining industry-related professional organizations, such as the American Association of Healthcare Administrative Management (AAHAM), can help aspiring healthcare financial analysts break into the field. In addition to providing members with networking opportunities, the organization also offers numerous certification programs, such as Certified Revenue Cycle Executive (CRCE), Certified Revenue Cycle Professional (CRCP), Certified Revenue Cycle Specialist (CRCS), and Certified Revenue Integrity Professional (CRIP).
Healthcare Financial Analyst Salary and Job Outlook
According to the U.S. Bureau of Labor Statistics (BLS), the median annual salary for financial analysts, including healthcare financial analysts, was $83,660 as of May 2020. Salaries vary based on a number of factors, such as organization size, geographical region, education level, and experience.
Job opportunities in healthcare are growing rapidly. The U.S. Bureau of Labor Statistics (BLS) projects that employment in healthcare occupations, including healthcare finance, will increase by 16% between 2020 and 2030, much faster than average. The aging baby-boom population and the corresponding increase in demand for healthcare services are among the many factors driving this job growth.
Become a Healthcare Financial Analyst
AdventHealth University Online designed its Graduate Certificate in Healthcare Administration to equip graduates with the in-demand skills needed to succeed as healthcare financial analysts. Delivered by faculty experts in the field, the program prepares graduates to pursue advanced degrees, such as an online Master of Healthcare Administration in Strategy and Innovation or an MHA/MBA dual degree.
AdventHealth University Online’s graduate certificate program includes coursework in strategic leadership, principles of healthcare strategy, and healthcare finance. Upon completion of the program, students often find they’ve developed advanced knowledge in a variety of key topics, such as payment policies, reimbursement methodologies, how to manage working capital and revenue cycles, and quantitative financial analysis.
Students interested in using their financial analytics skills in a healthcare environment will find healthcare financial analysis to be a rewarding, well-paying career path with wide-ranging employment opportunities. Take the first step toward a job in healthcare finance with AdventHealth University Online today.
Recommended Readings
How to Become a Financial Manager in Healthcare
How to Become a Medical Office Manager
Healthcare Management vs. Healthcare Administration
Sources:
American Association of Healthcare Administrative Management, Certification American Hospital Association, “How Could COVID-19 Affect the Financial Health of Hospitals in 2021?”
PayScale, Average Healthcare Financial Analyst Salary
Robert Half, “All You Need to Know About Healthcare Finance Jobs”
U.S. Bureau of Labor Statistics, Financial Analysts
U.S. Bureau of Labor Statistics, Healthcare Occupations
ZipRecruiter, “What Is a Healthcare Financial Analyst and How to Become One”
