This chapter discusses hospital administration. The administration is more pronounced at higher level of management, while management is more pronounced at lower level. Thus administration and management may be distinct activities but both pertain to the dual aspect of the same device. Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims. By virtue of serving a health care organization the hospital administrator performs some specific roles which are described in detail. Deployment of resources for long term goals of the hospital, the administrator will have to conduct SWOT analysis. In Indian hospitals materials cost about 50% of hospital budget. There are two types of cost: one is cost of material and second is cost on material.