The Accrediting Commission of Health care Management was created in 1968 as an accrediting agency of graduate education in hospital administration. The agency works in conjunction with the Association of University Programs in Health Administration, the American College of Hospital Administration, the American Public Health Association, and the American Hospital Association.

CAHME came into being to meet the growing need of interest in the field of hospital management. The origins of the organization began in 1970, but in 2004 the Accrediting Commission of Health care Management was born into existence and recognized by the U.S. Department of Education. The commission is qualified to accredit master's level health care management programs in the United States and Canada.

The goal of the accrediting commission is to establish the criteria needed for master's level programs, and oversee the level of standards accepted for health care management education. The programs accredited under the umbrella of CAHME can vary and include schools of business, medicine, public health, public administration, allied health sciences, and graduate studies.