In its 2014 report, the Kentucky Education and Workforce Development Cabinet revealed the average salary for a healthcare administrator in the Commonwealth to be $88,756.
Experience is perhaps the single most significant factor contributing to salary offers in the field of healthcare administration, with experienced professionals in Kentucky earning 2.65 times more on average than those new to the field.
Kentucky’s top-earning healthcare administrators with salaries that fell within the 90th percentile earned an average of $134,246, while those new to the profession with salaries that fell within the 10th percentile earned $50,688 on average.
Factors Contributing to Rapid Job Growth in Healthcare Administration
The field of healthcare administration in Kentucky is growing so rapidly that it ranked number five on the list of fastest growing occupations that generally require at least a bachelor’s degree. The Kentucky Education and Workforce Development Cabinet projects a job growth rate of 30.36% for healthcare administrators for the ten-year period from 2012 to 2022.
Louisville is a particularly strong hub for the healthcare industry according to a 2013 analysis conducted by the Federal Reserve Bank of St. Louis. Six of its 10 largest employers were in the healthcare industry. One key company in this city is Humana, which is the second largest employer in Louisville and ranks in the Fortune 100. The Lane Report noted that Louisville is gaining international acclaim for its vibrant healthcare sector.
Not surprisingly, the Louisville-Jefferson County area employed the largest number of healthcare administrators in Kentucky as of 2014 according to the US Bureau of Labor Statistics. In addition, healthcare administrators in this area earned a higher average salary when compared to Kentucky’s other major metropolitan areas.
An analysis of industry sectors for Kentucky as a whole reported that major employers of healthcare administrators are likely to see a large growth in employment between 2010 and 2018. A 2011 report by EMSI and Maher & Maher indicated that general medical and surgical hospitals are expected to hire 6,651 people during this ten-year period, while physicians’ offices are likely to hire 6,349 more.
Healthcare Administrator Salaries in Kentucky Differ by Location
The salaries for Kentucky’s healthcare administrators varied a great deal depending on their location. The Kentucky Education and Workforce Development Cabinet reported the salaries for healthcare administrators in Kentucky’s workforce investment regions as of 2014. Healthcare administrators in the Northern Kentucky region earned an average salary more than $12,400 higher than the average for the Commonwealth:
For comparison, the US Bureau of Labor Statistics shows salaries for healthcare administrators in Kentucky’s major metropolitan and nonmetropolitan areas as of 2014. Healthcare administrators in the nonmetropolitan area of South Central Kentucky had the highest average salary closely followed by healthcare administrators in the Louisville-Jefferson County area: