As is usually the case in any career, the salary levels for Healthcare Managers and Administrators depends largely on a number of factors, including experience, educational qualifications and certifications as well as other factors.
Education As a Factor Influencing Salary
One of the biggest variables in the salaries for those working as Healthcare Managers and Administrators is the level of education. Most positions as Healthcare Managers will minimally require a background in business and at least a Bachelor’s Degree in a business-related major. In todays employment marketplace most Healthcare Administrators will require at least a Master’s Degree. Many medical professionals who move into administrative roles will pursue a Master of Business Administration (MBA). According to the Bureau of Labor Statistics (BLS), in May 2012, the median annual wage for Medical and Healthcare managers was $88,580. The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $53,940, The top 10 percent, with Master’s Degrees and many years of experience, can earn up to $144,000 per year. Those at the top of the pay scale are almost always are those employees with graduate degrees.
Location As a Factor Influencing Salary
The annual mean wages for healthcare occupations vary widely based on location of employment. According to the BLS in 2012 the highest salaries for Medical and Health Service Managers were in the states of Massachusetts, Washington, Rhode Island, New York and Connecticut. The top salaries for Metropolitan areas in the country were San Jose, Madera, Boston, Rochester, and Tacoma. Even with the diversity in the salary range, those working as Healthcare Managers will have salary ranges higher than many other professions in the current economy.
Size of the Organization/Facility/Practice As a Factor Influencing Salary
Larger hospitals pay more competitive salaries than smaller healthcare organizations. The BLS reported that compensation level for Medical and Health Services Managers will vary according to the size of the facility. Healthcare Administrators and Managers in a medical practice with six or fewer doctors, the median salary was $86,459. For those with 7-25 doctors, it was $115,000, and for practices with 26+ doctors, the median salary was $150,726.
The Levels of Responsibility As a Factor Influencing Salary
Hospital CEO’s and CFO’s almost always have a Master of Health Administration (MHA) or MBA, drawing a salary of up to $245,000 dollars. Medical and Health Services Managers typically earn up to $90,000. Those CEO’s and CFO’s of larger facilities often have more responsibilities, so there is typically a direct correlation to the increased salary level.
Work Experience As a Factor Influencing Salary
The salary of a hospital CEO with 4 years of experience ranges from $59,495 to $150,117. A CEO with 20 years experience or more can expect to earn betweem $115,553 and $245,774.
Certification As a Factor Influencing Salary
Certification is not mandatory for most positions in Healthcare Administration, however it does have a significant impact on the expected salary level. Many Healthcare Administrators who have been certified by the respective Board for Healthcare Administration Licensure Exam under the Department of Education earns up to $40,000 more than those administrators who are not certified (but fully qualified).
There are many factors that will determine the salary of those in careers as Healthcare Managers and Administrators and it is important to be aware of those differences when choosing a career.