According to the Bureau of Labor Statistics, in 2018 Kentucky healthcare administrators made a median annual salary of $83,550. In the upper 90th percentile, experienced administrators brought in as much as $135,950 a year.
According to the Kaiser Family Foundation, 12 percent of Kentucky’s workforce is employed in the healthcare industry. Those numbers are climbing, with investments such as AmerisourceBergen’s $15 million expansion in Louisville in 2018 opening up new positions for both providers and support staff.
With more staff come more managerial duties, which will drive both employment and wages higher across the state for healthcare administrators.
Factors Contributing to Rapid Job Growth in Healthcare Administration
Kentucky’s Center for Statistics estimates a 17.9 percent increase in the number of medical and health service managers between 2016 and 2026. Drive by both new job creation and turnover in existing roles, that will amount to some 470 openings for administrators annually during that period.
Much of that is down to the state’s election to expand Medicaid coverage in January of 2014. According to the Kentucky Center for Economic Policy, healthcare jobs were in a decline across the state prior to that point; afterward, a steady upward trend has seen current healthcare employment numbers climb beyond 250,000, fueled in part by a more than $3 billion increase in spending post-expansion.
Healthcare Administrator Salaries in Kentucky Differ by Location
Although Lexington-Fayette is only the second largest urban center in the state for medical administrator employment, it has far and away the highest salary levels for the role. The median of $97,980 is close the the national average, while the top ten percent, consisting of the most experienced and responsible leaders in the role, could earn $159,170.
- 25th percentile: $62,120
- Median: $78,740
- 75th percentile: $104,030
- 90th percentile: $136,130
- 25th percentile: $81,970
- Median: $97,980
- 75th percentile: $124,480
- 90th percentile: $159,170
- 25th percentile: $71,130
- Median: $88,810
- 75th percentile: $102,570
- 90th percentile: $121,100
- 25th percentile: $69,920
- Median: $79,460
- 75th percentile: $93,860
- 90th percentile: $103,210
Most of the rural areas of the state offer considerably lower pay than the metropolitan areas, with the exception of the South Central nonmetropolitan area. At $89,270, the median wage there exceeds that of some of most of the top four urban areas in the state:
Salary and employment data compiled by the United States Department of Labor’s Bureau of Labor Statistics in May of 2018. Figures represent accumulated data for all areas of employment for medical and health services managers – https://www.bls.gov/oes/current/oes_ky.htm#11-9111.
BLS salary data represents state and MSA (Metropolitan Statistical Area) average and median earnings for the occupations listed and includes workers at all levels of education and experience. This data does not represent starting salaries. Employment conditions in your area may vary.
Job growth projections sourced from the Kentucky Center for Statistics and published in the U.S. Department of Labor-funded Long Term Occupational Projections (2016-2026) database – https://projectionscentral.com/Projections/LongTerm.
All salary and job growth data accessed in June 2019.