What's the Salary for Careers in Health Services Administration?

Health services administrators oversee hospitals, doctors' offices and nursing facilities. Read on to learn more about how your employer, your location and experience may affect your average salary in this career. Schools offering Health Care Administration degrees can also be found in these popular choices.

Job Description

Health services administrators, also known as health services managers, ensure that a medical facility is operating efficiently. If you're interested in working in this field, you'll typically need a bachelor's or a master's degree to qualify for a managerial job. Knowledge of health care, computers and business management are essential to this position. You'll need to communicate frequently with physicians and office personnel to ensure that your department or facility remains on budget, while continuing to oversee that the healthcare needs of patients are delivered effectively and efficiently.

Important Facts About This Occupation

Licensure Required by every state in order to work in nursing homes; some states require licensure to work in assisted-living centers
Professional Certification Voluntary certification is offered in many specialties, such as the Certified Nursing Home Administrator designation.
Key Skills Ability to solve problems and communicate effectively; attention to detail; technical and analytical skills
Similar Occupations Human resource (HR) manager, insurance underwriter, social and community service manager

Salary Overview

According to the U.S. Bureau of Labor Statistics (BLS), medical and health services managers made a mean annual salary of $113,730 in May 2018 (www.bls.gov). Most of these workers made salaries ranging from $58,680-$182,600. Industry, experience and location are three factors that influence earnings in the field.

Salaries by Industry

The type of health care facility you choose to work at can greatly affect your salary. According to the BLS, the highest-paying industries were 'pharmaceutical and medicine manufacturing' and 'navigational, measuring, electromedical, and control instruments manufacturing' in May 2018. The former had an annual mean wage of $221,290, while the latter paid $176,740 a year on average.

According to the BLS, in 2018 there were about 121,120 health services managers working at general medical and surgical hospitals, which employed the most of these types of professionals. These professionals earned an average annual salary of $122,460 in May 2018. Physicians' offices was the second most popular industry, employing 43,800 workers and offering a mean annual wage of $107,530.

Salaries by Experience

The salary you might earn as a health services administrator also depends on your level of experience. According to PayScale.com, most medical and health services managers with 0-5 years of work experience earned a median salary of $61,140 in May 2019. Most managers with 5-10 years of experience earned a median of $63,698 per year, and those with 10-20 years of experience earned a median of $71,635.

Salaries by Location

Location is another factor that affects a health services manager's pay. In May 2018, the BLS noted that California and Texas employed the highest numbers of these workers by state, and average salaries in these locations were $125,770 and $105,450 respectively. The BLS noted that District of Columbia and New York were among the top-paying states for these managers in May 2018. Other locations with high average wages included Massachusetts ($133,900), Connecticut ($129,480), and Delaware ($131,260). Managers working in the lowest-paying states, such as Iowa, Idaho and Arkansas, averaged $76,550-$97,310.

Job Outlook

According to the BLS, there were 352,200 medical and health services managers employed in 2016. Jobs in this field are projected to increase by 20% between 2016 and 2026, which is much faster than the average for all jobs, according to the BLS. The field will continue to expand due to the growing number of medical facilities and increased need for professionals to organize information and oversee medical staff.

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