Today, healthcare is one of the fastest growing industries and it defies even economic downturns in terms of its growth. The reason for this is the growing case of health issues in the population due to unhealthy lifestyles, and therefore, resulting in an increase in the number of healthcare facilities and practitioners. This growth has led to the development of the field of Healthcare Management which covers the management of the operations of healthcare facilities and the provision of health care services by experienced managers and administrators. Healthcare Management is required in diverse facilities such as hospitals, public health centers, long-term care and rehabilitation centers, as well as hospices. This strong demand is justification for the strong and growing healthcare management salary.

Average Healthcare Management Salary

The average healthcare management salary in the United States is an astounding $101k. These medical and health services manager salaries range from that of $53k in the 10th percentile to $151k in the 90th percentile. This equates to a wage of $26 to $72 an hour.


Percentiles10%25%50%75%90%
Hourly Wage$25.67$33.27$42.60$55.24$72.40
Weekly Wage$1,027$1,331$1,704$2,210$2,896
Monthly Salary$4,450$5,767$7,383$9,575$12,550
Annual Salary$53,400$69,200$88,600$114,900$150,600

Highest Paying Industries for Healthcare Managers

Computer Systems Design and Related Services was the #1 industry to work in as a healthcare management professional. The average salary of healthcare managers in this industry is $146k. Next best is the Pharmaceutical and Medicine Manufacturing industry with an average annual salary of $142k.

RankIndustriesHourly WageWeekly SalaryMonthly SalaryAnnual Salary
1Computer Systems Design and Related Services$70.29 $2,812 $12,183 $146,200
2Pharmaceutical and Medicine Manufacturing$68.37 $2,735 $11,850 $142,200
3Drugs and Druggists' Sundries Merchant Wholesalers$65.72 $2,629 $11,392 $136,700
4Navigational, Measuring, Electromedical, and Control Instruments Manufacturing$65.14 $2,606 $11,292 $135,500
5Data Processing, Hosting, and Related Services$64.57 $2,583 $11,192 $134,300

Highest Paying States for Healthcare Management

To no surprise, California and New York were #1 and #2, respectively, for the top states in regards to the salaries for healthcare managers. In both states, the salary of healthcare management professionals was around $114k. Close behind were other states such as Connecticut, Rhode Island and New Jersey, which all had salaries over $110k. For a detailed list, see the healthcare management salary by state table.

RankStatesHourly WageWeekly SalaryMonthly SalaryAnnual Salary
1New York$55.10 $2,204 $9,550 $114,600
2California$54.71 $2,188 $9,483 $113,800
3Connecticut$53.70 $2,148 $9,308 $111,700
4Rhode Island$53.32 $2,133 $9,242 $110,900
5New Jersey$53.03 $2,121 $9,192 $110,300
6Oregon$52.64 $2,106 $9,125 $109,500
7Alaska$52.45 $2,098 $9,092 $109,100
8Delaware$52.26 $2,090 $9,058 $108,700
9Washington$51.49 $2,060 $8,925 $107,100
10New Mexico$50.38 $2,015 $8,733 $104,800

Lowest Paying States for Healthcare Managers

Knowing that there are states that pay well over six figures, it would be good to identify which states to avoid when looking for jobs. To worse paying states for healthcare managers were Puerto Rico, Montana, and Idaho, who all had average salaries under $75k.

RankStatesHourly WageWeekly SalaryMonthly SalaryAnnual Salary
1Puerto Rico$31.92 $1,277 $5,533 $66,400
2Montana$35.91 $1,437 $6,225 $74,700
3Idaho$35.96 $1,438 $6,233 $74,800
4North Dakota$36.25 $1,450 $6,283 $75,400
5Arkansas$36.39 $1,456 $6,308 $75,700
6Iowa$37.45 $1,498 $6,492 $77,900
7West Virginia$37.50 $1,500 $6,500 $78,000
8Mississippi$37.74 $1,510 $6,542 $78,500
9Oklahoma$38.22 $1,529 $6,625 $79,500
10Wyoming$39.66 $1,587 $6,875 $82,500

Top Paying Metropolitan Cities for Healthcare Managers

Since California is the highest paying state, it makes sense that its major cities also have the highest healthcare management salary. San Jose, Sunnyvale, and Santa Clara had an average annual salary of $133k. Next were the cities of New Hampshire, Lawrence, Methuen, and Salem in Massachusetts with a salary of nearly $133k a year.

RankMetropolitan CitiesHourly WageWeekly SalaryMonthly SalaryAnnual Salary
1California: San Jose, Sunnyvale, Santa Clara$64.13 $2,565 $11,117$133,400
2Massachusetts, New Hampshire: Lawrence, Methuen, Salem$63.80 $2,552 $11,058$132,700
3Pennsylvania: Reading$61.63 $2,465 $10,683$128,200
4California: Santa Cruz, Watsonville$60.38 $2,415 $10,467$125,600
5Oregon: Medford$60.19 $2,408 $10,433$125,200
6Florida: Fort Lauderdale, Pompano Beach, Deerfield Beach$59.62 $2,385 $10,333$124,000
7New York, New Jersey: New York, White Plains, Wayne$59.47 $2,379 $10,308$123,700
8California: Vallejo, Fairfield$59.28 $2,371 $10,275$123,300
9Minnesota: Rochester$59.28 $2,371 $10,275$123,300
10Minnesota: Santa Fe$58.08 $2,323 $10,067$120,800

Top Paying Non-Metropolitan Areas for Healthcare Management

Healthcare Management professionals in non-metropolitan areas made considerably less money than they did in major cities. Sussex County in Delaware topped the list of suburban areas with an hourly wage of $57 compared to the $64 in specific California cities.

RankNon-Metropolitan AreasHourly WageWeekly SalaryMonthly SalaryAnnual Salary
1Delaware: Sussex County$56.78 $2,271 $9,842 $118,100
2Massachusetts: North Central$55.67 $2,227 $9,650 $115,800
3Arizona: Southeast Arizona$55.63 $2,225 $9,642 $115,700
4New Hampshire: West New Hampshire$52.88 $2,115 $9,167 $110,000
5Massachusetts: Southwest Massachusetts$52.60 $2,104 $9,117 $109,400

Highest Healthcare Management Employment Level by States

Not only did California and New York have the title of highest paying states, they also had the most employed healthcare managers. Each state employed nearly 27,000 healthcare management professionals, which is likely to grow in the future.

To round off the top five, Texas, Pennsylvania, and Ohio each had between 14,000 and 18,000 employees.

RankStatesHourly WageWeekly SalaryMonthly SalaryAnnual SalaryEmployment
1California$54.71 $2,188 $9,483 $113,800 26,690
2New York$55.10 $2,204 $9,550 $114,600 26,630
3Texas$45.48 $1,819 $7,883 $94,600 17,850
4Pennsylvania$44.09 $1,763 $7,642 $91,700 14,690
5Ohio$43.46 $1,738 $7,533 $90,400 14,390

Job Outlook

Healthcare Management is projected to grow 23% by 2022 to nearly 400,000 employees. This growth far outpaces the national growth rate of 11% for all jobs. Also, compared to management occupations in general, the growth in healthcare managers is triple.

Employment Projections Data Healthcare Management, 2012-2022 
Employment, 2012315,500
Projected Employment, 2022388,800
Employment Difference:73,300
Medical and Health services managers23%
Management occupations7%
Total, All Occupations11%

Source: Bureau of Labor and Statistics

Healthcare Management Job Description

salaries of healthcare managersHealthcare management addresses the various business needs of the unit or organization they work for, and this can include diverse requirements such as technology integration, department management, as well as financial & operational reviews.

Based on their qualifications and experience, a Healthcare Manager can be required to oversee single or multiple departments, hospitals and even multiple offices. Their responsibilities will include managing the health delivery process from doctors and nurses, as well as support and health administrative staff. With such varying duties that are all very essential to the success of the organization, the salary of healthcare management professionals are lucrative.

Additionally, Healthcare Management is also required for running a variety of administrative departments such as Finance, Human Resources, Information Technology as well as Executive Management. Thus for a role in healthcare management, you need to have great communication, interpersonal and motivational skills to ensure smooth operations. It is clear that managing a healthcare facility requires a diverse background of skills.

How to Become a Healthcare Manager

healthcare management salaryTo qualify for a career in this field, you must first ensure that you already have experience in the healthcare industry through work at lower level hospital management jobs or as a healthcare consultant.

The next step is to obtain a minimum of a Bachelor’s degree, although a Master’s degree in Business Management along with Healthcare Administration is preferred.

It is recommended though that you pursue a degree in Healthcare Management which is specifically designed for management professionals in the industry. This covers such areas as strategic planning & administration, health economics & information systems, finance & accounting, as well as hospital management & organization. Y

ou can also choose to specialize in managing a particular type of facility such as a nursing home or a healthcare clinic. Healthcare management salaries in this field can vary from $55,000 to $150,000 based on experience, qualifications and the type of facility being managed.

There is no licensing requirement to be in Healthcare Management except in the case of Nursing Care facilities where state licensing is required. For certification there are two main ones available which include the Certified Professional in Healthcare Information and Management Systems (CPHIMS) offered by the Professional Association of Health Care Office Management. They are focused on the technology delivery side of healthcare management.

Additionally, there is also the Fellow of the American College of Healthcare Executives (FACHE) which allows you to become board certified in healthcare administration and is a good option for senior Healthcare Management roles.

Experience is very important in this industry. People in this field are often seasoned professionals, which further supports their high paying healthcare management salary.