Healthcare Managers and Administrators are creating a tremendous impact on the business world. Those graduates with an MBA with a concentration in healthcare will have the ticket to earn salaries within the top 10% of earnings for management positions in the medical field. Current data reported by the US Bureau of Labor Statistics predicts that that by the year 2020, the need for more managerial roles within the healthcare industry will have expanded by more than 22% and the average salary of a health care administrator is $84,270.
Will Salary Levels Vary by Location?
One of the top factors that will affect what a Healthcare Manager’s salary is the location of employment. Healthcare Managers in an urban area can expect to make significantly more than those working in a rural area of the country. According to industry reports, the highest healthcare manager/administrators salaries are in the following areas:
- Washington D.C
- Rhode Island
- New Jersey
- New York
In these selected states, Healthcare Managers and Administrators typically earn salaries of more than $105,000 annually. Listed below are the highest paying areas in the country with average annual salaries:
- Salinas, CA: $132,650
- San Jose / Sunnyvale / Santa Clara, CA: $122,730
- Lawrence / Methuen / Salem, MA-NH: $121,390
- Burlington / South Burlington, VT: $119,780
- Seattle / Bellevue / Everett, WA: $118,750
What Other Factors Influence Salary Scales?
Salary also fluctuates according to the responsibilities of the administrator and the size of the facility he or she operates. The median annual salary of a health care administrator working in a practice with up to six physicians is $86,459. The average salary increases to $115,000 in practices with seven to 25 physicians and reaches $150,756 in practices with 26 or more physicians. affecting compensation for specific job is the individual experience level. Those with an additional period of experience will earn significantly more than those in an entry-level position. Another factor is the size of the business or organization, the type of business, and an assessment of individual strengths to fit employment needs will also affect salaries. The salary of a health care administrator can vary greatly according to the depth of his responsibilities and the size of the facility where he is employed. The lowest 10 percent of professionals earned less than $51,280 and the top 10 percent earned more than $144,880.
What Area of Employment Has the Highest Annual Salary for a Healthcare MBA?
Those employed in hospital facilities are the highest paid; in part because this is the most prevalent and popular venue for the occupation. There is however, a wide range in salaries of those employed within hospitals. Hospital chief information officers (CIO) earned an average of $208,000 annually in 2012, with those employed at critical access facilities with fewer than 25 beds earning as little as $80,000 per year. Another factor that influences the salaries was the type of organization, title for the position and reporting relationship. Those who worked at hospitals with fewer than 200 beds earned significantly less salaries compared to those who worked at larger facilities with between 200 and 399 beds. Position Title was also a factor: 37 percent of those employees with CIO-only titles earned $199,890 on average in comparison with those 28 percent with the additional title of vice president earning $206,788 and the 11 percent with senior or executive vice president titles earning average of $310,326 annually.
Salary and Growth Data Provided by the US Bureau of Labor Statistics, 2014 Occupational Handbook.