Health Sciences - Health Care Administration

Employment Outlook

Expected Growth

Employment of medical and health services managers is expected to grow 21 to 35 percent through 2012, as the health services industry continues to expand and diversify. Opportunities will be especially good in offices of physicians and other health practitioners, home healthcare services, and outpatient care centers. Applicants with work experience in the healthcare field and strong business and management skills should have the best opportunities.

Hospitals will continue to employ the most medical and health services managers over the projection period. However, the number of new jobs created in hospitals is expected to increase at a slower rate than in many other industries, as hospitals focus on controlling costs and increasing the utilization of clinics and other alternate care sites. Medical and health services managers with experience in large facilities will enjoy the best job opportunities, as hospitals become larger and more complex. Employment will grow the fastest in practitioners' offices and in home healthcare agencies. Many services previously provided in hospitals will continue to shift to these sectors, especially as medical technologies improve. Demand in medical group practice management will grow as medical group practices become larger and more complex. Medical and health services managers will need to deal with the pressures of cost containment and financial accountability, as well as with the increased focus on preventive care. They also will become more involved in trying to improve the health of their communities. Managers with specialized experience in a particular field, such as reimbursement, should have good opportunities.

Medical and health services managers also will be employed by healthcare management companies who provide management services to hospitals and other organizations, as well as to specific departments such as emergency, information management systems, managed care contract negotiations, and physician recruiting.

Earnings

Median annual earnings of medical and health services managers were $61,370 in 2002. The middle 50 percent earned between $47,910 and $80,150, with some earnings as high as $109,080. Median annual earnings in the industries employing the largest numbers of medical and health services managers in 2002 were as follows:

Earnings of medical and health services managers vary by type and size of the facility, as well as by level of responsibility. For example, the Medical Group Management Association reported that, in 2002, median salaries for administrators were $78,258 in practices with fewer than 7 physicians; $92,727 in practices with 7 to 25 physicians; and $125,988 in practices with more than 26 physicians. According to a survey by Modern Healthcare magazine, median annual compensation in 2003 for managers of selected clinical departments was $71,800 in respiratory care, $79,000 in physical therapy, $84,500 in home healthcare, $85,100 in laboratory services, $89,100 in rehabilitation services, $89,500 in medical imaging/diagnostic radiology, and $98,400 in nursing services. Salaries also varied according to size of facility and geographic region.

Source: Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, 2004-05 Edition, Medical and Health Services (www.bls.gov/oco/ocos014.htm).