How Much Do Healthcare Administrators Make?

Healthcare administrators play an important role in the healthcare system — and they’re often well compensated for their efforts. 

Pinning down healthcare administrator salaries is not always simple. Lots of factors can play a role, including experience, geographic location, education level, and more.

We can cut through the confusion. Discover how different factors impact healthcare administrator salary and what you might expect to earn in this profession.

According to Payscale, as of May 2024 the average salary for healthcare administrators was $78,447. While you can work in healthcare administration with various degree types, healthcare administration salaries are highest for those with more education and experience.

Here is a sampling of average healthcare administrator salaries based on the highest level of healthcare administration degree attained by the employee:

Advanced degrees and relevant experience not only help you earn more money in healthcare administration, but they can help you access better-paying careers as well. For example, medical and health services managers made a median annual wage of $110,680 as of May 2023, according to the Bureau of Labor Statistics (BLS).

While the worst of the pandemic may be behind us, its effects on the U.S. healthcare system linger. The pandemic highlighted the challenges facing the U.S. healthcare system and contributed to high levels of burnout among healthcare staff. As a result, many healthcare professions have encountered major shortages from the large numbers of professionals leaving the field — and not always being replaced.

This certainly creates a number of problems, but it can also create opportunities for aspiring healthcare administrators. For example, the BLS projects 28% growth in medical and health services manager occupations each year between 2022-2032. That’s an addition of more than 140,000 new jobs each year.

The highest-paying states for healthcare administrators typically have a combination of high demand and a high cost of living. On the flip side, the lowest-paying states have fewer opportunities and a lower cost of living, which drive salaries down.

According to BLS figures, here are the states with highest and lowest mean salaries for medical and health services managers, many of whom have training or experience in healthcare administration.

The nation’s highest-paying states for healthcare administrators are:

The BLS rates these dates as the lowest-paying states for healthcare administrators:

The various healthcare administrator professions come with different salaries and degree requirements. The chart below lists some of the most common roles in the field and the minimum degree required for each one.

For many high-level healthcare administration jobs, a master’s degree or higher is required for employment consideration. In healthcare administration, you might have a clinical degree like a master of science in nursing (MSN), a research-based degree like a Ph.D., or an administrative degree like a master’s in healthcare administration or business administration.

A graduate degree and healthcare experience can prepare you for positions in government, hospitals and health systems, healthcare management, or other healthcare settings.

(Source: Payscale)

As a healthcare administrator, you can increase your salary by taking on additional responsibilities or pursuing additional credentials, such as a graduate degree or certification.

Potentially beneficial certifications include the Certified Medical Manager (CMM) credential, the Certified Professional in Healthcare Information and Management Systems (CPHIMS), or one of the several medical coding certifications.

You can also look for jobs in locations offering higher average salaries or pursue higher-paying specialties. For example, you might choose a specialization in your healthcare administration program if it offers one. If it doesn’t, consider focusing your electives and internships in one field to carve out a niche for yourself.

In short, the more you prove your value to your current organization or future employers, the stronger your negotiating power for increasing your salary.