Capable leaders are pivotal to a healthcare organization’s ability to meet patient needs, continuously innovate, and combat challenges. For example, the growth of telehealth and telemedicine solutions have created new market competition that healthcare managers need to navigate. 

“Think about CVS,” says George Moran, an executive adjunct professor at Northeastern University’s School of Business and College of Health Sciences. “They now compete with physician practices with their Minute Clinics. How do local physicians compete with that? How do they innovate? How can they do things differently?” 

As a result, healthcare management roles are in high demand. According to the Bureau Labor of Statistics, employment of medical and health services managers is projected to grow 28 percent from 2022 to 2032 

If you are interested in this exciting career path, here’s an overview of what healthcare management is, how much you can make, and the various job opportunities that are available to you. 

What Is Healthcare Management?   

Healthcare management coordinates and monitors a healthcare facility or system to ensure it produces optimal patient outcomes. Healthcare management roles can expect to oversee various operational tasks ranging from supply chain management, regulatory compliance, and staffing—similar to healthcare administration roles.  

“There isn’t a big difference between healthcare management and administration,” Moran says. “But high-level management primarily oversees multiple departments and functional areas, while administrators are the people who get things done.” 

Since healthcare management deals with a facility’s “big picture” needs, these roles primarily focus on strategy. Once those goals and objectives are established, they are communicated to healthcare administrators who address the needs of individual department budgets, day-to-day operations, and staffing. As a result, these roles often offer high earning potential.     

How Much Can You Make in Healthcare Management?  

While money may not be your motivation to move into the business-side of healthcare, it is comforting to know that this field can offer financial stability.  

According to our analysis of job postings data, the annual median salary of healthcare management roles is $93,600. Not only that, this earning potential is projected to increase at an annual rate of almost nine percent.

While there are many factors that are driving this increase in earning potential, healthcare management is on the rise largely because of recent technological advancements. 

“Healthcare is changing so rapidly,” Moran says. “With new technologies like AI, how we treat patients from a clinical sense is going to change exponentially. So people who work in those systems, who understand how to manage the integration of those services, will be better equipped to navigate patient resistance to it.” 

Earning a healthcare management degree can give you the foundational skills you need to excel in these constantly evolving supervisory roles, but this largely depends on what jobs you are interested in. Here’s a closer look at some common jobs in healthcare management. 

Top Jobs in Healthcare Management 

While there are numerous lucrative career options in data analytics, health informatics, healthcare finance, supply chain management, and healthcare technologies, the most common management job titles you can expect according to our analysis of job postings data include:  

1. Medical Director – Median annual salary: $210, 800

2. Clinical Supervisor – Median annual salary: $76,000

3. Director of Rehabilitation – Median annual salary: $94,200 

4. Laboratory Manager – Median annual salary: $87,400

5. Clinical Director – Median annual salary: $91,400

6. Executive Director – Median annual salary: $100,100

7. Program Director – Median annual salary: $73,000

8. Practice Manager – Median annual salary: $74,600

9. Clinical Manager – Median annual salary: $85,200

10. Nursing Home Administrator – Median annual salary: $120,100

There are several career options in healthcare management though, all of them offering you a lucrative career path. If you want to ensure your career in healthcare business offers long-term financial stability, here are four factors you should consider.      

4 Factors that Can Affect Your Earning Potential in Healthcare Management 

Since healthcare is a growing field, it isn’t surprising that there are a number of industries that hire healthcare administration professionals.  

According to our analysis of job postings data, here are the top industries hiring healthcare administrators: 

1. Experience 

Professional experience will largely influence which positions you are qualified to pursue.  

For example, large hospitals typically have medical records managers, IT managers, compliance officers, finance managers, health services managers, and a multitude of other roles. As you move from entry-level positions to management roles, employers often desire experience in their specific industries.  

According to our analysis of job postings data, this is how your years of experience can affect your earning potential in healthcare management:

• Median annual salary for 0–4 years of experience: $80,300 
• Median annual salary 5–9 years of experience: $115,000 
• Median annual salary 10+ years of experience: $178,000 

As a career changer, you’ll likely have to start off in entry-level administrative roles and make an effort to show how your previous experience aligns with working in healthcare.  

“I think if you’re interested in moving from a different industry, you need to think about transferrable skills,” Moran advises. “What are the skills that healthcare needs? And how do you use those skills in a way that can facilitate that transfer to a healthcare organization?” 

Hospitals are large-scale operations that depend on departmental and specialist mangers to coordinate clinical and non-clinical teams and oversee all functions contributing to patient outcomes.

2.  Education and Qualification

Healthcare managers have to develop a complex skill set that isn’t easy to acquire in one role or environment. These are essential to your ability to successfully navigate the healthcare ecosystem. For some roles, employers may prefer industry-specific education or credentials, so it’s crucial to research requirements for healthcare management.   

One example of this is obtaining the right education. According to our analysis of job postings data, a master’s in healthcare administration or management can improve your median earning potential up to $108,800 per year—with the top 15 percent earning over $165,000.  

While education can open doors, it isn’t the sole entry path into this industry. Observing skilled healthcare managers and getting mentorship in a real-world environment is an invaluable learning experience. 

3. Professional Network

Never underestimate the value of networking when starting a career in healthcare management.  

“Spend as much time as you do studying, networking,” Moran remarks. Connecting with other healthcare professionals gives you quicker access to job opportunities, keeps you up to date on best practices, and facilitates the exchange of innovative ideas. 

“I think all too often people wait until they are looking for a job to actually network,” Moran says. “The best time to network is when you are not looking for a job.”  

It’s also worthwhile to network with people outside the healthcare sphere to broaden your perspective. Healthcare management skills are transferable to other project management and operations management roles, so you never know where opportunities could arise.  

“Networking is where we spend less time because we are so busy working,” Moran concludes. “We do not have enough time to think about networking until we are out of a job and need another one. By then you are playing catchup.” 

4. Location

Location is always a key factor in healthcare because some areas of the country are booming with activity and innovation in healthcare while others are more stagnant.  

“Boston is such a unique, unusual market,” Moran says. “Healthcare costs in Boston are 25 percent higher than the national average. And then you have rural areas where a hospital is not within 100 miles, so those populations rely on community health centers.” 

This does not mean these rural locations do not need the expertise of healthcare management professionals. However, it can affect how much you can make.

If your earning potential is top of mind, here are some of the top locations hiring healthcare managers and administrators, and their median annual salary, according to our analysis of job postings data: 

• New York, NY: $144,900
• Los Angeles, CA: $99,600 
• Chicago, IL: $95,000 
• Houston, TX: $89,900 
• Boston, MA: $100,100

Every location offers a different balance of cost, opportunity, and access, which will affect both your earning potential and the job market competition.   

Boost Your Earning Potential with a Management Degree

Whether you are currently in the healthcare field or hoping to make a transition, earning a degree in healthcare management can boost your long-term earning potential. Obtaining an advanced education signals to employers that you are committed to growing as a healthcare leader. It also allows you to explore the intricacies of healthcare management in more depth and learn from experienced instructors who understand the factors shaping the industry’s future. 

Northeastern University’s Master of Science in Management: Healthcare Administration brings together an expert faculty invested in producing leaders who can thrive amid the digital transformation happening in healthcare. The program provides a comprehensive curriculum in healthcare system management and emphasizes experiential learning to equip graduates with real-world skills.                 

If you want to know more about how this degree can jumpstart your career, contact an admissions counselor to find out what the program has to offer.