Despite it being a job with many responsibilities, many wonder how much a hospital administrator makes. Hospital administrators have the potential to earn good wages in return for their dedication to the facility. Also known as medical and health services managers, these trained professionals run or oversee the operations of a hospital. They prepare and monitor budgets; hire and train staff members; develop departmental goals; represent the facility at board meetings, and ensure the hospital is operating efficiently and in compliance with hospital and legal requirements. Here is some information on hospital administrator wages.
What Factors Determine Wages?
Hospital administrator wages can be determined by many factors, including geographic location, employer, years of work experience and degree level. We often hear of people wishing to relocate for better wages. This is because geographic locations really do make a difference in wages. An area that has a lot of competition may pay higher wages than a small town with only one hospital. The cost of living in a specific town will also affect wages. A hospital administrator with five years or experience will probably be offered a higher wage than one fresh out of college because there will be less training required.
Average Wages for Hospital Administrators
The U.S. Bureau of Labor Statistics (BLS) reports that medical and health services managers earned an average annual wage of $111,680 as of May 2017. Managers at the lowest 10 percent earned about $58,350, and those at the upper 90 percent earned about $176,130. The bureau reports the average hourly wage was $53.69. Wages can also vary from one reporting agency to another. PayScale reports that hospital administrators earned an average annual wage of $90,385 as of May 2018. They have wages ranging from $46,135 to $181,452 with the average hourly wage at $22.38.
Geographic Locations Affect Wages
How much a hospital administrator makes is probably affected more by geographic location than any other factor. Below are the five top-paying states for medical and health services managers followed by the five lowest-paying states along with the wages they earned as of a May 2017 BLS report.
• District of Columbia – $143,710
• New York – $136,770
• Connecticut – $132,600
• Delaware – $129,070
• Massachusetts – $128.730
• Puerto Rico – $75,160
• Arkansas – $82,930
• Iowa – $86,710
• Oklahoma – $88,990
• Idaho – $89,180
It’s easy to see how different states offer different wages. Arkansas hospital administrators earned $82,930, which is substantially less than the $136,770 earned by hospital administrators working in New York. Salaries differ from state to state, but certain cities and metropolitan areas garner higher wages as well.
For instance, hospital administrators in the San Francisco-Redwood City- South Francisco metropolitan division earned about $159,250. The Nassau and Suffolk Counties in New York paid hospital administrators about $151,660. Both of these areas report higher wages than the highest-paid states.
Hospital administrators not only have a lot of responsibility, but they also have a job that allows them to make the hospital or medical facility not only profitable and efficient but also one that provides the very best health care for its patients. With health care so important in our country today, working as a hospital administrator will not only provide good wages, but it will also provide the individual with an opportunity to offer good health care to patients.