Healthcare Administration Salary & Career Guide

10 Min Read Published September 1, 2024
healthcare administration salary guide

Healthcare administration is a rapidly growing field with lots of room for career advancement, high earning potential, work-from-home opportunities, and degree programs you can complete online. Check out our healthcare administration salary guide below.

This guide will explain everything you need to know about getting started in this fast-growing and lucrative career, including what you can expect in a healthcare administration salary, what careers are available, what you'll do as a healthcare administrator, and more. 

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What is Healthcare Administration?

Healthcare administrators, also known as healthcare executives or healthcare services managers, plan, coordinate, and direct healthcare services.

Healthcare administrators work closely with medical physicians, nurses, and other staff to ensure healthcare or medical facilities run smoothly and safely and are compliant with all state and national regulations. 

Healthcare administrators typically do not deal with patients on a day-to-day basis but rather help shape policies and make healthcare changes. They oversee the daily operations of a medical facility, including staffing, finance, and overall healthcare compliance with all governing bodies. 

Healthcare administrators are responsible for communicating with staff throughout the hospital and delegating appropriate duties to other individuals. 

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Healthcare Administration Salary 

Healthcare Administrators are one of the best-paying careers available for those who want to get into the healthcare field but don't want to go the nursing route. The U.S. Bureau of Labor Statistics (BLS) reported a 2023 median salary of $110,680 per year or $53.21 per hour for medical and health services managers. 

The BLS does not differentiate between different healthcare administrators and managers, so this figure is not specific to Healthcare Administrators. However, according to Payscale, the average annual salary for healthcare administrators is $78,816. But you can earn a higher annual salary with increased years of experience:

  1. Less than 1 year of experience earns an average salary of $64K
  2. 1-4 years of experience earn an average salary of $70K
  3. 5-9 years of experience earns an average salary of $82K
  4. 10-19 years of experience earns an average salary of $91K
  5. 20+ years of experience earns an average salary of $96K

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Top Paying STATES for Healthcare Administrators

State Annual Salary Monthly Pay Weekly Pay Hourly Wage
Oregon $45,661 $3,805 $878 $21.95
Alaska $45,622 $3,801 $877 $21.93
North Dakota $45,475 $3,789 $874 $21.86
Massachusetts $45,283 $3,773 $870 $21.77
Hawaii $44,539 $3,711 $856 $21.41
Washington $44,399 $3,699 $853 $21.35
Nevada $43,137 $3,594 $829 $20.74
South Dakota $42,979 $3,581 $826 $20.66
Colorado $42,922 $3,576 $825 $20.64
Rhode Island $42,292 $3,524 $813 $20.33
Connecticut $42,142 $3,511 $810 $20.26
New York $41,508 $3,459 $798 $19.96
Mississippi $41,230 $3,435 $792 $19.82
Vermont $40,496 $3,374 $778 $19.47
Delaware $40,440 $3,370 $777 $19.44
Virginia $39,894 $3,324 $767 $19.18
Illinois $39,715 $3,309 $763 $19.09
Maryland $39,175 $3,264 $753 $18.83
Kansas $38,795 $3,232 $746 $18.65
Nebraska $38,366 $3,197 $737 $18.45
California $38,339 $3,194 $737 $18.43
New Jersey $38,060 $3,171 $731 $18.30
Missouri $38,057 $3,171 $731 $18.30
Pennsylvania $38,026 $3,168 $731 $18.28
Wisconsin $37,722 $3,143 $725 $18.14
South Carolina $37,714 $3,142 $725 $18.13
Maine $37,476 $3,123 $720 $18.02
Oklahoma $37,154 $3,096 $714 $17.86
New Hampshire $36,962 $3,080 $710 $17.77
North Carolina $36,935 $3,077 $710 $17.76
Idaho $36,651 $3,054 $704 $17.62
Minnesota $36,468 $3,039 $701 $17.53
Wyoming $36,407 $3,033 $700 $17.50
Texas $36,382 $3,031 $699 $17.49
New Mexico $36,226 $3,018 $696 $17.42
Indiana $35,948 $2,995 $691 $17.28
Kentucky $35,813 $2,984 $688 $17.22
Michigan $35,540 $2,961 $683 $17.09
Ohio $35,439 $2,953 $681 $17.04
Arizona $35,205 $2,933 $677 $16.93
Iowa $34,886 $2,907 $670 $16.77
Montana $34,675 $2,889 $666 $16.67
Alabama $34,242 $2,853 $658 $16.46
Arkansas $33,889 $2,824 $651 $16.29
Utah $33,873 $2,822 $651 $16.29
Tennessee $33,833 $2,819 $650 $16.27
Georgia $31,899 $2,658 $613 $15.34
Louisiana $31,840 $2,653 $612 $15.31
West Virginia $29,368 $2,447 $564 $14.12
Florida $28,231 $2,352 $542 $13.57

Source: Ziprecruiter

Top Paying Cities for Healthcare Administrators

As of 2023, the highest-paying cities for Healthcare Administrators that have reported salaries, according to the BLS, are:

Metropolitan area Hourly mean wage Annual mean wage
Trenton, NJ $ 93.14 $ 193,730
San Francisco-Oakland-Hayward, CA $ 89.69 $ 186,560
New York-Newark-Jersey City, NY-NJ-PA $ 86.22 $ 179,330
San Jose-Sunnyvale-Santa Clara, CA $ 84.92 $ 176,640
Napa, CA $ 83.04 $ 172,730
Boston-Cambridge-Nashua, MA-NH $ 79.78 $ 165,940
Danbury, CT $ 79.76 $ 165,910
Vallejo-Fairfield, CA $ 79.32 $ 164,990
California-Lexington Park, MD $ 78.48 $ 163,250
Portland-Vancouver-Hillsboro, OR-WA $ 77.44 $ 161,070

 

What Do Healthcare Administrators Do?

Healthcare administrators are in charge of day-to-day operations such as creating work schedules, monitoring budgets, and maintaining compliance with state laws and regulations. They are also responsible for coordinating with other medical and nursing professionals throughout the organization.

They work closely with medical physicians, registered nurses, and other healthcare professionals, as well as patients and their families. Healthcare administrators generally work the first shift in order to collaborate with other healthcare professionals. 

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How to Become a Healthcare Administrator

1. Earn a Degree

Anyone interested in becoming a healthcare administrator will likely want to earn either an Associate Degree in Healthcare Administration or a Bachelor's in Healthcare Administration.

In these programs, you’ll take classes in medical coding, anatomy and physiology, business management, human relations and resource management, healthcare marketing, and finance and delivery systems.

You can also earn related degrees such as medical or nursing and then continue your education with an additional degree or a post-bachelor's or post-graduate certificate in healthcare administration (More on those options in the next sections.) 

2. Advance Your Education

Completing a Master’s in Business Administration (MBA) or Master’s in Healthcare Administration (MHA) or going all the way to the doctorate level is key to working in top healthcare administrator positions. Without this degree, you will be limited to entry-level positions in smaller facilities or at only a departmental level within healthcare organizations.

3. Earn Advanced Certifications 

There are several advanced certifications that are helpful for healthcare administrators. The American Association of Healthcare Administrative Management offers several certifications, including Certified Revenue Cycle Executive (CRCE), Certified Revenue Cycle Professional, and Certified Revenue Integrity Professional.

Healthcare Administration Degrees

When it comes to healthcare administration, there's not just one default degree to get. From associate to Ph.D., there's a degree for every level and every career goal. You can learn more in our Ultimate Guide to Healthcare Administration Degrees.

Types of Healthcare Administration Degrees

Associate Degree in Healthcare Administration

Prerequisites:
  • High School Diploma or GED
  • Minimum GPA
Total Program Cost:
$5,000 to $20,000
Program Length:
16-24 months
  • Career Opportunities: Entry-level healthcare careers such as:
    • Medical administrative assistant
    • Medical records assistant
    • Medical transcriptionist

Bachelor's Degree in Healthcare Administration

Prerequisites:
  • High School Diploma or GED
  • Minimum GPA
  • Standardized Test Scores
Total Program Cost:
$30,000 for in-state and upwards of  $100,000 for private universities
Program Length:
4 years

Career Opportunities: Mid-level healthcare administration careers such as:

  • Community health manager
  • Healthcare consultant
  • Health insurance analyst
  • Health policy analyst
  • Health promotion specialist
  • Health services manager
  • Medical reimbursement analyst
  • Medical services administrator
  • Nursing home administrative assistant
  • Private practice officer manager

Master's Degree in Healthcare Administration (MHA)

Prerequisites:
  • Bachelor's Degree in Business or Healthcare Administration
  • GPA minimum
  • GRE or GMAT scores
  • Relevant work experience
  • Resume or CV
  • Letters of recommendation
Total Program Cost:
$10,000 to $100,000
Program Length:
12 months to 3 years

Career Opportunities: High-level roles as healthcare executives, including:

  • CEO or COO
  • Clinic director 
  • Department or division director
  • Facility manager
  • Healthcare consultant
  • Health services manager
  • Hospital administrator
  • Long-term care manager
  • Medical records manager
  • Nurse manager

MBA in Healthcare Management

Prerequisites:
  • Bachelor's Degree in a related field
  • GPA minimum
  • GRE or GMAT scores
  • Relevant work experience
  • Resume or CV
  • Letters of recommendation
Total Program Cost:
$10,000 to $100,000
Program Length:
12 months to 3 years

Career Opportunities: 

An MBA in Healthcare management focuses on business management and leadership for healthcare professionals.

High-level roles as healthcare executives, including:

  • Policy Analyst
  • Clinical director
  • Hospital chief executive officer
  • Medical records manager
  • Health and social services manager
  • Chief Nursing Officer (CNO)
  • Chief Financial Operator (CFO)
  • Medical Manager
  • Nursing home administrator
  • Health information manager
  • Healthcare administrators
  • Pharmaceutical project manager

Doctorate Degree in Health Administration (DHA)

Prerequisites:
  • Master's Degree
  • CV or resume
  • Interview
  • Letters of recommendations
  • Minimum GPA of 3.0
  • Personal statement
  • Relevant work experience
Total Program Cost:
$60,000+
Program Length:
3 to 5 years

Career Opportunities:

Earning a doctorate degree in healthcare administration qualifies individuals for all of the same jobs as having a Master’s degree. However, most DHA holders are interested in careers in research and/or academia.

PhD in Healthcare Administration

Prerequisites:
  • Letters of recommendations
  • Minimum GPA of 3.0
  • Personal statement
  • Relevant work experience
Total Program Cost:
$60,000+
Program Length:
3 to 5 years

Career Opportunities:

Similar to a DHA, this is a terminal degree that focuses on research and education. The main purpose of this program is scientific and investigative research, especially through experiments and research. 

Healthcare Administration Certificates

Degrees aren't your only option when it comes to getting into a healthcare administration career. There are also healthcare administration certificate programs available for both post-bachelor's and post-master's degrees. 

Essentially, depending on which degree you currently hold -- a bachelor's or master's degree -- you can complete an add-on certification to the degree you already have. This can be to a degree you have in a related field, to help you add some additional management or leadership skills to your career, or one outside of health administration if you're looking to make a career change. 

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What Healthcare Administration Careers are Available?

Healthcare administration is a vast field, and so are the career opportunities within it! From entry-level healthcare administration roles like medical administrative assistants to hospital CEOs, there's something for everyone.

Check out our guide to healthcare administration careers for an overview of all the opportunities available. Or, if you want to jump straight to the money jobs, check out our list of the highest-paying healthcare administration jobs.

Here are some of the popular careers available in healthcare administration along with their average salaries:

What is the Career Outlook for a Healthcare Administrator?

According to the BLS, employment of medical and health services managers (i.e., healthcare administrators) is projected to grow 28% from 2022 to 2032, much faster than the average for all occupations. 

Much of this growth is expected to be seen as the baby boomer population continues to age, as well as technology that allows patients to live longer lives. 

This demand will continue to increase the needs of doctors, nurses, and other healthcare professionals; therefore, healthcare administrators will be needed in order to ensure operations run smoothly.

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Where Can I Learn More About Healthcare Administration?

Healthcare Administrator FAQs 

  • What can I do with a Healthcare Administration degree?

    • With an entry-level healthcare administration degree, individuals can work in a variety of healthcare services. Other roles can include office managers, administrative assistants, medical insurance specialists, or consultants. After earning an advanced degree, such as an MBA or MHA, individuals can become top-level administrators. 
  • What does a Healthcare Administrator do?

    • Healthcare administrators are in charge of day-to-day operations, including creating work schedules, monitoring budgets, and maintaining compliance with state laws and regulations. They are also responsible for coordinating with other medical and nursing professionals throughout the organization. 
  • How do I start a career in Healthcare Administration?

    • First, you must obtain a degree with applicability to healthcare administration. Joining an association such as the American College of Healthcare Executives and making connections in the field will help advance your career.

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Kathleen Gaines
MSN, RN, BA, CBC
Kathleen Gaines
News and Education Editor

Kathleen Gaines (nee Colduvell) is a nationally published writer turned Pediatric ICU nurse from Philadelphia with over 13 years of ICU experience. She has an extensive ICU background having formerly worked in the CICU and NICU at several major hospitals in the Philadelphia region. After earning her MSN in Education from Loyola University of New Orleans, she currently also teaches for several prominent Universities making sure the next generation is ready for the bedside. As a certified breastfeeding counselor and trauma certified nurse, she is always ready for the next nursing challenge.

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