Do you have questions about the academic and other credentials that affect the total salary for healthcare administrators? Wondering which types of facilities pay medical administrators best? Curious about what entry-level medical managers can realistically expect to earn and what the average pay for healthcare administrators is? Want a better understanding of how the industry that employs a medical administrator affects the compensation that s/he receives? Let’s explore the various factors that influence salaries in the lucrative field of healthcare administration.
Average Salary Ranges for Medical Administrators
As a group, health services managers were earning median annual salaries of $96,540 as of May, 2016. Medical administrators working in hospitals and government jobs earned significantly higher compensation, with the median salaries for these two groups both amounting to slightly more than $104,000 per year. Administrators overseeing physicians’ office facilities earned median annual salaries of $87,540. Nursing home administration staff earned annual pay of $80,340.
Entry-Level Salary Ranges for Healthcare Administrators
Typical entry-level pay for a healthcare administrator ranges from $40,000 – $57,000 per year. The lower end of this salary range represents management trainee positions that do not require previous supervisory experience. A bachelor’s degree is generally required for all of these positions, and some require that the applicant must be enrolled in a graduate degree program if s/he has not already earned a graduate-level degree.
How Academic and Professional Credentials Affect Healthcare Administrators’ Compensation
Elka Torpey at the Bureau of Labor Statistics has documented multiple occupations in which there are dramatic wage differences. Healthcare workers and managers are both included on her list of workers whose wages vary greatly, and health services managers are specifically mentioned on the list. She calculated the wage difference between the highest and lowest paid health care managers at a whopping $105,260 annually.
Her article also includes some logical explanations of why some workers in this field earn so much more than others do. Not surprisingly, education is one of the main points of differentiation in this field. Higher education is crucial for becoming a medical manager. In the healthcare industry, advanced education, certification and professional licensure tend to correlate with higher salaries and more desirable job opportunities. Most healthcare administrators hold master’s degrees, and many also hold professional certifications.
The Industries That Pay Their Medical Administrators the Best Salaries Overall
In 2016, the best paid medical and health services managers were working in the pharmaceutical industry. These professionals earned mean annual wages of $216,910. Medical managers in the electromedical device manufacturing industry also earned high paychecks, with their mean annual wage being calculated at $162,580. Medical administrators engaged in scientific research earned mean annual salaries of $149,150. Administrators employed by insurance carriers earned mean annual salaries of $146,090. Of the healthcare administrators who were employed by hospitals, some of the best paid in the group were working at specialty facilities. Their mean annual salaries amounted to $121,260.
These are not the only factors that can affect the salary for healthcare administrators, but these are all details that tend to have a significant influence on earnings in this profession. Other important factors not mentioned above include geographic location, individual negotiating ability, level of experience and the unique skills and personality traits the candidate brings to the table. We hope this information has answered any questions you may have had regarding the salary for healthcare administrators.