Healthcare administration is one of the strongest career paths in today’s job market. Employment is projected to grow nearly eight times faster than the average occupation nationwide, according to the U.S. Bureau of Labor Statistics (BLS). The online Master of Business Administration (MBA) in Healthcare Administration program from Southern Illinois University Edwardsville (SIUE) prepares graduates for leadership roles in this rapidly growing field that offers ample opportunities for long-term career growth.
Salaries vary widely by role, industry and location, so knowing where you stand can help shape your next career move. Accreditation and program reputation also affect how employers view candidate qualifications and determine compensation. This guide covers current salary data, top-paying work settings and career paths for healthcare administrators using the latest government wage and job growth data.
What Is Healthcare Administration?
Healthcare administration is the business side of medicine. These leaders plan and direct the daily work at hospitals and clinics.
Unlike physicians and nurses, healthcare administrators do not provide direct patient care. Instead, they manage the staff, budgets and systems that keep operations running smoothly. They work in a range of settings, including hospitals, clinics and insurance firms.
Job titles vary and can include healthcare executive, practice manager or department head. Typical duties include managing finances, hiring and supervising staff, organizing records and creating efficiencies. Healthcare administrators also ensure their facility complies with state and federal regulations.
Is Healthcare Administration a Good Career?
Healthcare administration offers strong pay, steady demand and career flexibility. According the U.S. Bureau of Labor Statistics (BLS), about 62,100 new job openings are expected each year between 2024 and 2034. Much of this growth is tied to an aging population and rising demand for care.
The field also offers administrators the flexibility to work in a wide range of settings and specialties, and many roles offer better work-life balance than clinical positions with overnight shifts. Administrators can stay in one city or move between regions as new roles open up. They may also choose to specialize in an area that aligns with their interests, such as behavioral health, long-term care or outpatient surgery.
How Much Do Healthcare Administrators Make?
According to BLS, the median annual wage for medical and health services managers was $117,960 in May 2024. That works out to be about $56.71 an hour.
| Percentile | Annual Wage (May 2024) |
| Bottom 10% | Less than $69,680 |
| Median | $117,960 |
| Top 10% | More than $219,080 |
Entry-level administrators in smaller settings tend to earn toward the low end of this range. Senior executives at large health systems often earn well above the median. Salary growth in this field is tied to years of experience and level of responsibility. Professionals who move into larger systems or executive roles typically see the biggest pay gains.
Total pay often includes bonuses, retirement funds and health coverage on top of a base salary. These extras can add real value beyond the wage figures reported by BLS.
Healthcare Administration Salary by Work Setting
Where you work also determines salary levels. BLS data shows wide differences across settings.
| Work Setting | Median Annual Wage (May 2024) |
| Government | $132,620 |
| Hospitals (state, local and private) | $130,690 |
| Outpatient care centers | $106,990 |
| Offices of physicians | $100,780 |
| Nursing and residential care facilities | $99,250 |
Government agencies and hospitals report the highest median pay among these settings. Leaders in these roles often manage larger teams and more complex tasks. Outpatient centers and doctor’s offices pay somewhat less, on average, but hours tend to be steadier. Nursing homes report the lowest median pay among these settings, though demand there stays strong.
Choosing a setting often means weighing pay against day-to-day work style and pace. A larger hospital may offer higher pay, while a smaller clinic may offer a more predictable schedule.
Healthcare Administration Salary by Industry
Some healthcare leaders work outside hospitals and clinics where pay can run much higher. 2023 Occupational Employment and Wage Statistics data from BLS shows top-paying industries include drug manufacturing (mean wage of $231,070 a year) and research services (mean wage of $228,170 per year). These jobs often involve research coordination or policy work rather than running a facility. Demand for this kind of expertise keeps growing alongside compensation.
A drug company might hire a healthcare leader to run clinical trials or handle regulatory work. An insurance firm might hire one to oversee provider networks or claims teams. Hospital and clinic roles still employ the largest share of these leaders overall.
How Education Affects Your Healthcare Administration Salary
Education plays a major role in what healthcare administrators can earn. BLS notes a bachelor’s degree is the typical entry point, though many employers prefer a master’s degree for leadership roles. An MBA with a healthcare focus, or a Master of Health Administration, is the standard credential for director and executive-level roles. Graduate training builds the skills these senior jobs demand.
Some leaders also earn certification through groups such as the American College of Healthcare Executives. This credential can help support career growth alongside a graduate degree.
Many graduate programs, including SIUE’s, are offered fully online to fit around a full-time job. This format enables working professionals to gain in-demand skills and credentials without pausing their careers. SIUE’s online MBA in Healthcare Administration program blends core business training with healthcare-specific coursework, equipping graduates with the competencies employers look for in future leaders.
Healthcare Administration Career Paths
Healthcare administration MBA graduates qualify for a range of roles. A clinical manager role — which involves running a single unit such as the emergency room or radiology — is often the first step into management. Other roles focus on daily tasks or data. A practice manager runs day-to-day operations for a doctor’s office while a health information manager keeps patient records safe and accurate.
At the top, a hospital administrator runs an entire facility and works with governing boards. C-suite leaders such as chief executive officers (CEOs) and chief financial officers (CFOs) oversee entire health systems and typically require years of experience and an advanced degree.
Many administrators start in an entry-level role and move up over several years of steady performance. A strong record in one department often opens the door to broader oversight roles. Jobs in the field are available across the country, from large city hospitals to small rural clinics. This flexibility lets administrators choose the setting that best aligns with their goals and interests.
Healthcare Administration Job Outlook
BLS projects 23% job growth for medical and health services managers between 2024 and 2034, far above the 3% average growth rate across all occupations. Two trends are driving this growth: an aging population and more complex care delivery. Both trends mean healthcare organizations need more skilled managers. Growth is expected in every region of the country, though some states may see faster hiring due to local demand. Rural areas often need skilled leaders to run smaller facilities.
New tools such as electronic records and telehealth are changing how care teams work each day. Leaders who understand these tools often move up faster. Research in the NIH’s PubMed Central identifies communication, leadership and problem-solving as essential skills for healthcare managers. These skills matter even more as organizations grow larger.
Coursework in SIUE’s online MBA in Healthcare Administration builds these skills, from strategic decision-making to organizational leadership. Graduates emerge ready to step into a range of roles that offer premium compensation and opportunities for long-term career growth.
Learn more about Southern Illinois University Edwardsville’s online MBA in Healthcare Administration program.
About SIUE’s Online MBA in Healthcare Administration Program
SIUE’s online MBA in Healthcare Administration program blends business training with healthcare coursework. The 36-credit curriculum pairs core MBA courses in accounting, finance, economics and strategic management with healthcare-focused electives such as health economics and policy, health care law and health care financial management, giving students a working grasp of the business and regulatory forces shaping today’s healthcare organizations. No foundation courses are required regardless of undergraduate background, and working professionals can complete this accelerated program in as few as 12 months.
Southern Illinois University Edwardsville is a public research university founded in 1957, serving nearly 13,000 students. Its business school holds dual AACSB accreditation, a mark held by only about 2% of business schools worldwide and has carried that distinction since 1975.
