Salary & Compensation for Hospital Managers

by Aurelio Locsin

Hospital managers oversee the business of running medical facilities so that doctors, nurses and other healthcare professionals can focus on medical diagnosis and treatment. They see to the efficient running of hospitals, customer satisfaction and profitability. This responsibility produces high salaries and compensation, although amounts vary by hospital type and funding.


Hospital managers earn a mean $101,920 per year, as of May 2011, according to the Bureau of Labor Statistics. This is greater than the pay for all medical managers in healthcare and social assistance, with an average of $94,320 per year. Hospitals are also not part of the top-paying industries for the profession. Insurance and employee-benefit funds hold that distinction, averaging $139,400 annually. However, managers make far greater than the average hospital worker, who earns a mean yearly $55,180.


The funding source of their facilities affects the salaries of hospital managers. Privately owned medical centers show the best pay, at $102,850 per year. State-funded hospitals are next, with means at $98,730 yearly. Facilities owned by local government have the lowest compensation, at an annual $96,570. To earn this pay, hospital managers manage the finances of their facilities, including budgets, taxes, billings and salaries. They meet with healthcare professionals to determine their needs, and hire, train and assign tasks to administrative workers. They also keep up with changing laws, regulations and technology related to healthcare, and disperse information throughout their hospitals.


Hospital type also plays a part in pay. Specialty hospitals that are not related to psychiatry or substance abuse boast the highest wages, at $107,030 per year. Next are general medical and surgical hospitals, averaging $102,040 yearly. At the bottom are psychiatric and substance-abuse hospitals at a mean annual $93,290. These employers require managers to have at least a bachelor’s degree in health administration. Many professionals also have a master’s degree in health services, long-term care administration or business. Graduates do not start at the top. They enter the field as assistant administrators and have to log several years at increasingly responsible positions.

Highs and Lows

The highest-paying hospital category belongs to privately owned specialty hospitals not involved with psychiatry or substance abuse, which average $94,130 per year. The lowest-paying category belongs to state-funded specialty hospitals also not involved with psychiatry or substance-abuse. They offer a mean annual $92,260. The BLS sees jobs for all medical and health-services managers increasing at 22 percent from 2010 to 2020, which is far greater than average. An aging baby-boom population will push the demand because they require more hospitalization than younger people.

About the Author

Aurelio Locsin has been writing professionally since 1982. He published his first book in 1996 and is a frequent contributor to many online publications, specializing in consumer, business and technical topics. Locsin holds a Bachelor of Arts in scientific and technical communications from the University of Washington.

Photo Credits

  • Jupiterimages/ Images