April 24, 2024

What Are Some of the Factors That Influence Salary Levels for Managers and Administrators in Healthcare?

In the current employment marketplace, Healthcare is one of the fastest growing industries and it continues to rise in employment numbers despite downturns in the current economy and its stunted growth. This increasing demand is responsible for the salaries of those careers in Healthcare management to continue to increase and the jobs market to continue in its upward growth.

The level of salary often depend on many contributing factors some of which include:

Location Influencing Salary Levels for Healthcare Managers

The mean annual wage for Healthcare Managers varies based on location of employment. According to the US Bureau of Labor and Statistics, in 2012 the highest salaries for Medical and Health Service Managers were in the states of Massachusetts, Washington, Rhode Island, New York and Connecticut. In these states Healthcare Managers and Administrators earned annual salaries of more than $105,000. The top salaries for Metropolitan areas in the country were San Jose, Madera, Boston, Rochester, and Tacoma. California and New York had the most employed as healthcare managers with each state employing nearly 27,000 Healthcare Management Executives and with Texas, Pennsylvania, and Ohio each tallying between 14,000 and 18,000 employees.

Size of the Organization Influencing Salary Levels for Healthcare Managers

The US Bureau of Labor Statistics reported that compensation level for Medical and Health Services Managers can vary according to the size of the facility. Larger hospitals tend to pay higher salaries than smaller healthcare organizations. The median salary for Healthcare Administrators and Managers in a medical practice with six or less doctors was $86,459, with 7-25 doctors it was $115,000, and for practices with more than 26 doctors the median salary was $150,726.

The Level of Responsibility Organization Influencing Salary Levels for Healthcare Managers

Hospital CEO’s with a Master of Health Administration or Master of Business Administration earn upwards of $245,000 annually, whereas General Medical and Health Services Managers generally make up to $90,000.

Work Experience Organization Influencing Salary Levels for Healthcare Managers

The salary of a hospital CEO with 4 years of experience ranges from $59,495 to $150,117 where as a CEO with 20 years + experience makes between $115,553 to $245,774.

What Are Some of the Careers With the Highest Paying Salaries in Healthcare Management?

Chief Nursing Officers (also referred to as Director of Nursing) are those responsible for managing an entire nursing department, and are generally considered the highest salaries for nursing careers. Most positions require a minimum of a Master of Science in Nursing, or a Master of Health Administration. The average annual salary is $173,000.

Hospital CEO’s are those individuals responsible for management and daily operation of an entire hospital and who usually reports to a board of directors. They are responsible to ensure that the hospital runs in a cost-effective manner. The average annual salary is $135,000.

Administrator in Public Health Care Facilities provide care to specialty groups such as the veterans pursuing careers with local, state, or federal agencies (such as the Food and Drug Administration and Centers for Medicare & Medicaid Services) or health-related national associations, such as the Red Cross or the American Hospital Association. The Median annual salary is $115,000

Health Care Actuaries work for insurance companies and are responsible to evaluate and minimize the financial risks for their organization. Healthcare Actuaries determine proper pricing for insurance plans by properly analyzing external risk factors. The average annual salary is $114,000.

Health Informatics Managers are responsible for the collection, handling and processing of clinical information for all types of purposes. You will need to handle patient information, billing information and various types of information that ensure medical quality. Through the use of the latest data analysis techniques, you will be able to make informed decisions about how to best organize all types of medical, patient and financial data in your organization. Average annual salary is $93,000.

There are many choices for exciting careers in Healthcare Management and Administration. With a variety of factors influencing the level of responsibility and salary earned, it is important to be well educated in a fully accredited Master’s Degree Program that will best suit future career objectives.

Salary Data Provided by the United States Bureau of Labor Statistics.