Healthcare administrators—also referred to as medical and health services managers—are critical to the smooth operation of healthcare facilities. They are involved in everything from overseeing staffing needs and budgets to ensuring legal compliance and general managerial duties. 

The salary of a healthcare administrator reflects the importance of their role within the public health field. The following guide discusses healthcare administration salary by location, work setting, industry and experience.

The Bureau of Labor Statistics (BLS) states that the typical healthcare administration salary falls between (lowest 10%) $59,980 and $195,630 (highest 10%)—the annual median wage was $104,280 as of May 2020. Healthcare administration hourly pay is roughly $50.13 per hour, according to the BLS. 

BLS data shows that those working in healthcare administration often make more than those who work in other management roles. The median annual salary in May 2020 for other management positions was $95,180. Healthcare administration salary is also significantly higher than the average median salary for all occupations in the United States, which was $41,950 in May 2020. 

Those interested in learning how to become a healthcare administrator should start by learning more about the skills, steps and education requirements necessary to enter the field.

Location is a key variable in the salary ranges of many occupations, including those related to medical and health services management. According to the BLS, the states with the highest healthcare administration salary in terms of annual mean wage are as follows:

When comparing healthcare administrator salary by state, it’s also important to look at the salary differences between various metropolitan areas. The following table shows the top-paying metropolitan areas for those working in healthcare administration:

The BLS data shows that healthcare administration salary by state is the most favorable in the District of Columbia, New York, Hawaii and California. However, when looked at from a metropolitan area standpoint, California healthcare administration salaries tend to outpace other areas of the country. 

It is important to keep in mind that location is only one factor that plays into salary ranges. Education, experience, the industry and the size of the employer are all part of the salary equation.

Just as geographic location can play a significant role in determining healthcare administration salary ranges, so can work setting. The following table shows the top median annual wages for healthcare administrators by work setting, according to May 2020 BLS data:

The highest median annual wage for healthcare administrators comes with government-based work, with more traditional healthcare settings not far behind. In certain work settings like hospitals, you may be asked to work nights and weekends. Healthcare facilities tend to be open and staffed 24/7, which means that on-call work is sometimes required for these types of healthcare administration positions. 

Every industry has its own unique demands, which may affect healthcare administration salary. The BLS provides the following data on the top-paying industries for healthcare administrators:

The responsibilities for healthcare administrators in these industries may vary from those who work in more traditional healthcare settings. For example, healthcare administrators in the pharmaceutical industry may be more involved in the coordination of research and development than individuals working in other settings.

While the industries listed above have the highest healthcare administrator salaries, they are not the most common industries that employ healthcare administrators. The BLS reports that outpatient care centers have the highest concentration of employment for this occupation. Healthcare administrators working in this setting have an annual mean wage of $117,200.

Work experience tends to be a determining factor for salary potential in healthcare administration. This means that someone with years of experience and a proven track record may expect to earn more than someone with little or no experience. According to the BLS, the top 10% of those working as medical and health services managers may earn up to $195,630 per year. This likely reflects a senior healthcare administrator salary or the salary of someone with experience and a higher degree. 

Ultimately, it is up to the employer to set their own healthcare administrator starting salary. Different organizations have different requirements for education, work experience and job training, but many roles in this field do require an advanced degree. 

On average, those with a master’s in healthcare administration (MHA) may expect to earn more than someone with a bachelor’s degree in a similar field. Students also have the option of pursuing an online MHA, which allows them the opportunity to continue working while completing their studies.

Organizations take many factors into consideration when setting salary ranges, so earning potential for healthcare administrators can vary greatly. Salary differences often come down to education, location, work setting and industry. Below, we address some commonly asked questions regarding healthcare administration salary, using information provided from the BLS’s May 2020 data.

Last updated November 2021

University and Program Name	Study Length	Test Requirement	Number of Credits
The University of North Carolina at Chapel Hill Master of Public Health (MPH) info SPONSORED	As few as 20 months	No GRE Required	42
George Washington University Master of Public Health info SPONSORED	As few as 12 months	No GRE Required	45
Boston University Online Master of Public Health info SPONSORED	24 months – 5 years	No GMAT/GRE Required	42