How much does a healthcare administrator make an hour

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.

Related resource: Top 20 Master’s in Healthcare Management Online/Online MBA in Healthcare Administration

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.

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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.

The average hospital administrator gross salary in Singapore is $322,023 or an equivalent hourly rate of $155. In addition, they earn an average bonus of $92,904. Salary estimates based on salary survey data collected directly from employers and anonymous employees in Singapore. An entry level hospital administrator (1-3 years of experience) earns an average salary of $197,312. On the other end, a senior level hospital administrator (8+ years of experience) earns an average salary of $539,979.

Most medical and health services managers work in offices in healthcare facilities, including hospitals and nursing homes, and group medical practices.

How to Become a Medical or Health Services Manager

Most medical and health services managers have at least a bachelor’s degree before entering the field; however, master’s degrees also are common. Prospective managers typically have some work experience in an administrative or a clinical role in a hospital or other healthcare facility.

Pay

The median annual wage for medical and health services managers was $101,340 in May 2021.

Job Outlook

Employment of medical and health services managers is projected to grow 28 percent from 2021 to 2031, much faster than the average for all occupations.

About 56,600 openings for medical and health services managers are projected each year, on average, over the decade. Many of those openings are expected to result from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire.

State & Area Data

Explore resources for employment and wages by state and area for medical and health services managers.

Similar Occupations

Compare the job duties, education, job growth, and pay of medical and health services managers with similar occupations.

More Information, Including Links to O*NET

Learn more about medical and health services managers by visiting additional resources, including O*NET, a source on key characteristics of workers and occupations.

What Medical and Health Services Managers Do About this section

In group medical practices, medical and health services managers work closely with physicians.

Medical and health services managers, also called healthcare executives or healthcare administrators, plan, direct, and coordinate medical and health services. They may manage an entire facility, a specific clinical area or department, or a medical practice for a group of physicians. Medical and health services managers must adapt to changes in healthcare laws, regulations, and technology.

Duties

Medical and health services managers typically do the following:

• Improve efficiency and quality in delivering healthcare services
• Develop departmental goals and objectives
• Ensure that the facility in which they work is up to date on and compliant with laws and regulations
• Recruit, train, and supervise staff members
• Manage the finances of the facility, such as patient fees and billing
• Create work schedules
• Prepare and monitor budgets and spending to ensure departments operate within funding limits
• Represent the facility at investor meetings or on governing boards
• Keep and organize records of the facility’s services, such as the number of inpatient beds used
• Communicate with members of the medical staff and department heads

Medical and health services managers work closely with physicians and surgeons, registered nurses, medical and clinical laboratory technologists and technicians, and other healthcare workers. Others may interact with patients or insurance agents.

Medical and health services managers’ titles depend on the facility or area of expertise in which they work. 

The following are examples of types of medical and health services managers:

Nursing home administrators manage staff, admissions, finances, and care of the building, as well as care of the residents in nursing homes. All states require licensure for nursing home administrators; licensing requirements vary by state.

Clinical managers oversee a specific department, such as nursing, surgery, or physical therapy, and have responsibilities based on that specialty. Clinical managers set and carry out policies, goals, and procedures for their departments; evaluate the quality of the staff’s work; and develop reports and budgets.

Health information managers are responsible for the maintenance and security of all patient records and data. They must stay up to date with evolving information technology, current or proposed laws about health information systems, and trends in managing large amounts of complex data. Health information managers must ensure that databases are complete, accurate, and accessible only to authorized personnel. They also may supervise the work of medical records and health information technicians.

How to Become a Medical or Health Services Manager About this section

Medical and health services managers must effectively communicate policies and procedures with other health professionals.

Most medical and health services managers have at least a bachelor’s degree before entering the field. However, master’s degrees are common and sometimes preferred by employers. Educational requirements vary by facility and specific function.

Education

Medical and health services managers typically need at least a bachelor's degree to enter the occupation. However, master’s degrees are common and sometimes preferred by employers. Graduate programs often last between 2 and 3 years and may include up to 1 year of supervised administrative experience in a hospital or healthcare consulting setting.

Common majors for medical and health services managers include healthcare and related fields, such as health administration, nursing, or public policy and social services. Degrees that focus on both management and healthcare combine business-related courses with courses in medical terminology, hospital organization, and health information systems. For example, a degree in health administration or health information management often includes courses in health services management, accounting and budgeting, human resources administration, strategic planning, law and ethics, health economics, and health information systems.

Work Experience in a Related Occupation

Many employers require prospective medical and health services managers to have some work experience in either an administrative or a clinical role in a hospital or other healthcare facility. For example, nursing home administrators usually have years of experience working as a registered nurse.

Others may begin their careers as medical records and health information technicians, administrative assistants, or financial clerks within a healthcare office.

Important Qualities

Analytical skills. Medical and health services managers must understand and follow current regulations and adapt to new laws.

Communication skills. These managers must effectively communicate policies and procedures to other health professionals and ensure their staff’s compliance with new laws and regulations.

Detail oriented. Medical and health services managers must pay attention to detail. They might be required to organize and maintain scheduling and billing information for very large facilities, such as hospitals.

Interpersonal skills. Medical and health services managers discuss staffing problems and patient information with other professionals, such as physicians and health insurance representatives.

Leadership skills. These managers are often responsible for finding creative solutions to staffing or other administrative problems. They must hire, train, motivate, and lead staff.

Technical skills. Medical and health services managers must stay up to date with advances in healthcare technology and data analytics. For example, they may need to use coding and classification software and electronic health record (EHR) systems as their facility adopts these technologies.

Licenses, Certifications, and Registrations

All states require licensure for nursing home administrators; requirements vary by state. In most states, these administrators must have a bachelor’s degree, complete a state-approved training program, and pass a national licensing exam. Some states also require applicants to pass a state-specific exam; others may require applicants to have previous work experience in a healthcare facility. Some states also require licensure for administrators in assisted-living facilities. For information on specific state-by-state licensure requirements, visit the National Association of Long Term Care Administrator Boards.

A license is typically not required in other areas of medical and health services management. However, some positions may require applicants to have a registered nurse or social worker license.

Although certification is not required, some managers choose to become certified. Certification is available in many areas of practice. For example, the Professional Association of Health Care Office Management offers certification in medical management, the American Health Information Management Association offers health information management certification, and the American College of Health Care Administrators offers the Certified Nursing Home Administrator and Certified Assisted Living Administrator distinctions.

Advancement

Medical and health services managers advance by moving into higher paying positions with more responsibility. Some health information managers, for example, can advance to become responsible for the entire hospital’s information systems. Other managers may advance to top executive positions within the organization. Advancement to top level executive positions usually requires a master’s degree.

Pay About this section

Medical and Health Services Managers

Median annual wages, May 2021

$101,340

$97,630

$45,760

Note: All Occupations includes all occupations in the U.S. Economy.
Source: U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics

The median annual wage for medical and health services managers was $101,340 in May 2021. 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 $60,780, and the highest 10 percent earned more than $205,620.

In May 2021, the median annual wages for medical and health services managers in the top industries in which they worked were as follows:

Most medical and health services managers work full time. Some managers work more than 40 hours per week. Work during evenings or weekends may be required in healthcare settings such as hospitals and nursing homes, which are open at all hours. Medical and health services managers may need to be on call in case of emergencies.

Job Outlook About this section

Medical and Health Services Managers

Percent change in employment, projected 2021-31

28%

7%

5%

Note: All Occupations includes all occupations in the U.S. Economy.
Source: U.S. Bureau of Labor Statistics, Employment Projections program

Employment of medical and health services managers is projected to grow 28 percent from 2021 to 2031, much faster than the average for all occupations.

About 56,600 openings for medical and health services managers are projected each year, on average, over the decade. Many of those openings are expected to result from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire.

Employment

As the large baby-boom population enters older age groups, which typically experience more health problems, there should be increased demand for healthcare services. This means there will be greater need for physicians and other healthcare workers, medical procedures, and healthcare facilities, and therefore greater need for managers to organize and oversee medical information and healthcare staff. These managers are important for improving care coordination, which is key in team-based care.

In addition, widespread use of electronic health records (EHRs) will continue to create demand for managers with knowledge of health information technology (IT) and informatics systems. Medical and health services managers will be needed to organize, oversee, and integrate these records across areas of the healthcare industry.

SOURCE: U.S. Bureau of Labor Statistics, Employment Projections program

Medical and health services managers

State & Area Data About this section

Occupational Employment and Wage Statistics (OEWS)

The Occupational Employment and Wage Statistics (OEWS) program produces employment and wage estimates annually for over 800 occupations. These estimates are available for the nation as a whole, for individual states, and for metropolitan and nonmetropolitan areas. The link(s) below go to OEWS data maps for employment and wages by state and area.

• Medical and health services managers

Projections Central

Occupational employment projections are developed for all states by Labor Market Information (LMI) or individual state Employment Projections offices. All state projections data are available at www.projectionscentral.com. Information on this site allows projected employment growth for an occupation to be compared among states or to be compared within one state. In addition, states may produce projections for areas; there are links to each state’s websites where these data may be retrieved.

CareerOneStop

CareerOneStop includes hundreds of occupational profiles with data available by state and metro area. There are links in the left-hand side menu to compare occupational employment by state and occupational wages by local area or metro area. There is also a salary info tool to search for wages by zip code.

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