Experience proves to be the single biggest factor in determining salaries for healthcare administrators. In fact, the average salary for Michigan’s healthcare administrators with earnings in the 90th percentile (typically experienced professionals) was three times higher than for those with salaries in the 10th percentile (typically entry-level professionals) according to 2014 data from the Michigan Department of Technology, Management & Budget (DTMB).
As of 2014, those with salaries that fell within the 90th percentile earned an average of $160,368 a year, while administrators with salaries within the 10th percentile earned $53,019 on average. The median salary among healthcare administrators in Michigan was $85,488 that year.
Job Growth and Driving Factors for Healthcare Administrators in Michigan
As of 2014, there were 11,700 healthcare administrators employed in Michigan according to the US Bureau of Labor Statistics (BLS). Several areas in the state had an exceptionally high number of healthcare administrators. In fact, Ann Arbor was home to the 3rd highest concentration of healthcare administration jobs of any metro area in the country, while the Upper Peninsula had the 3rd highest concentration of any non-metro area nationwide.
According to the Michigan Department of Technology, Management & Budget (DTMB), during the ten-year period from 2010 to 2020, the number of healthcare administrators in Michigan is expected to increase by 13.8%. This is 1.6 times faster than the average job growth rate in Michigan for this period.
Several areas of Michigan should see even greater levels of growth during this ten-year projection period. The DTBM expects the rate of increase in North West Lower Michigan to be 16.9%, while in Grand Rapids it is expected to be 15.9%.
The job growth trend for healthcare administrators always follows general job growth in the healthcare sector. Hospitals not only serve as the major employers of healthcare administrators, as of 2013 they were responsible for employing 223,000 Michigan residents according to the Partnership for Michigan’s Health report on the economic impact of healthcare in Michigan. This report revealed that the healthcare industry is the largest creator of direct, private-sector jobs in the state. According to the report, Michigan’s healthcare industry had an economic impact comparable to the education sector and automotive manufacturing combined.
Healthcare Administrator Salaries Throughout Michigan
The US Bureau of Labor Statistics (BLS) reported the earnings of healthcare administrators throughout Michigan as of 2014. The median salary among healthcare administrators in the Lansing area was the highest in the state. Healthcare administrators in the 90th percentile (typically experienced) in Detroit and the nonmetropolitan area of the Upper Peninsula of Michigan had salaries that were so high that they exceeded the maximum value reported by the BLS:
*Values are equal to or greater than $90 an hour or $187,199 a year. The US Bureau of Labor Statistics does not report salaries beyond these values.