In the ever-expanding world of healthcare, the professionals who manage the business side of medicine are more critical—and in-demand—than ever. Medical and Health Services Managers, often called Healthcare Administrators or Practice Managers, are the leaders who ensure medical facilities run efficiently, effectively, and profitably. This career path offers not only the chance to make a significant impact but also boasts impressive earning potential, with top professionals commanding six-figure salaries.
If you've searched for "MGMA salary data," you're already on the right track. The Medical Group Management Association (MGMA) is the industry's leading authority on compensation and operational benchmarks. This article will break down the latest salary data for 2024, explore the factors that drive compensation, and provide a clear picture of what you can expect to earn in this dynamic field.
What Does a Medical and Health Services Manager Do?
Before diving into the numbers, it's essential to understand the scope of the role. A Medical and Health Services Manager is responsible for the planning, direction, and coordination of the business activities of healthcare providers. They don't typically provide patient care directly; instead, they create the environment where high-quality care can thrive.
Key responsibilities often include:
- Financial Management: Managing budgets, overseeing patient billing and collections, and improving revenue cycles.
- Operational Efficiency: Streamlining workflows, managing facility operations, and implementing new technologies like Electronic Health Records (EHR).
- Staff Leadership: Recruiting, hiring, training, and managing administrative and clinical support staff.
- Regulatory Compliance: Ensuring the practice or facility adheres to complex healthcare laws and regulations, such as HIPAA.
- Strategic Planning: Working with physicians and owners to set goals for growth, patient services, and market expansion.
Whether managing a small private practice, a large specialty group, or a department within a hospital, these professionals are the backbone of the healthcare business.
Average Medical and Health Services Manager Salary in 2024
The compensation for Medical and Health Services Managers is strong and reflects the high level of responsibility the role entails. While specific figures can vary, we can establish a reliable baseline by looking at data from several authoritative sources.
According to the U.S. Bureau of Labor Statistics (BLS), the median annual wage for medical and health services managers was $110,680 in May 2023 (the most recent data available). The lowest 10 percent earned less than $67,960, while the highest 10 percent earned more than $216,750.
Other reputable sources provide a similar picture for 2024:
- Salary.com reports the median salary for a Medical and Health Services Manager in the U.S. is approximately $127,670 as of May 2024, with a typical range falling between $112,430 and $144,790.
- Payscale.com indicates an average base salary of around $101,000 per year, with significant bonus potential that can add thousands to the total compensation package.
It is crucial to note that the most detailed and influential data comes from the Medical Group Management Association (MGMA). The MGMA's DataDive reports are considered the gold standard for benchmarking compensation in medical practices. While the full, granular 2024 report is a proprietary resource available to members and subscribers, its findings drive industry standards. MGMA data often reveals higher compensation levels, especially when segmented by practice size, ownership, and geographic location.
Key Factors That Influence Salary
Your salary as a healthcare manager isn't a single, fixed number. It’s influenced by a combination of critical factors. Understanding these variables is key to maximizing your earning potential.
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Level of Education
Education is a foundational element of your career trajectory. While a bachelor's degree in health administration or a related field is typically the minimum requirement, a master's degree can significantly increase your salary and open doors to senior leadership positions. Common advanced degrees include:
- Master of Health Administration (MHA): A specialized degree focused on the leadership and management of healthcare systems.
- Master of Business Administration (MBA) with a Healthcare Concentration: Combines core business principles with healthcare-specific knowledge.
Professionals with a master's degree often qualify for director-level and C-suite roles (like CEO or COO of a medical group), which correspond with the highest salary brackets reported by the BLS and MGMA.
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Years of Experience
Experience is perhaps the most significant driver of salary growth. Compensation typically follows a clear progression:
- Entry-Level (0-3 years): Roles like Practice Coordinator or Office Manager. Salaries often start in the $65,000 to $85,000 range.
- Mid-Career (4-10 years): Positions like Practice Administrator or Health Services Manager of a medium-sized practice. Earnings typically move into the $90,000 to $130,000 range.
- Senior/Executive-Level (10+ years): Roles such as Director of Operations, Administrator of a large multi-specialty group, or a Vice President in a hospital system. These positions regularly command salaries well over $150,000, with top executives earning upwards of $250,000, especially in large, profitable organizations.
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Geographic Location
Where you work matters. Salaries for healthcare managers vary widely by state and even by metropolitan area, largely due to differences in cost of living and demand for healthcare services. According to BLS data, some of the top-paying states for this profession include:
- New York
- District of Columbia
- Massachusetts
- Washington
- New Jersey
Conversely, salaries may be lower in rural areas and states with a lower cost of living, though the purchasing power of that salary may still be quite strong.
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Company Type
The type and size of the healthcare organization have a direct impact on salary. MGMA data is particularly useful here, as it often segments compensation by practice ownership and size.
- Small Private Practice: A manager at a small, single-physician practice will generally earn less than one at a larger organization due to lower revenue and complexity.
- Large, Physician-Owned Multi-Specialty Group: These organizations are more complex to manage and generate higher revenue, leading to significantly higher salaries for administrators.
- Hospital-Owned Medical Group: These are often the highest-paying environments. As part of a large hospital system, these roles involve complex budgets, extensive staff, and integration with the broader health system, warranting top-tier compensation.
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Area of Specialization
Within healthcare management, specialization can further influence earnings. Managing a practice in a high-revenue specialty like cardiology, oncology, or orthopedics may offer higher compensation than managing a primary care or pediatric practice. Furthermore, in very large organizations, you can specialize in functional areas like finance, human resources, or clinical operations, with compensation tied to the strategic importance of that function.
Job Outlook
The future for Medical and Health Services Managers is exceptionally bright. The BLS projects that employment in this field will grow by 28% from 2022 to 2032, which is much faster than the average for all occupations.
This incredible growth is driven by several factors:
- The large baby-boom population is aging, increasing the demand for healthcare services.
- Advances in medical technology and treatments are creating new opportunities and administrative complexities.
- A widespread focus on healthcare efficiency and cost-effectiveness requires skilled managers to lead the way.
This high demand translates directly into job security and continued upward pressure on salaries, making it an excellent long-term career choice.
Conclusion
A career as a Medical and Health Services Manager offers a rare combination of meaningful work, leadership opportunities, and substantial financial rewards. As the 2024 data shows, the path to a six-figure salary is clear and achievable for dedicated professionals.
For those considering this field, the key takeaways are:
- Invest in Education: An advanced degree like an MHA or MBA is a powerful accelerator for your career and salary.
- Build Experience Strategically: Progress from smaller roles to managing larger, more complex practices or departments to maximize your value.
- Be Location-Aware: Understand the salary benchmarks in your target region.
- Stay Informed: Use resources like the BLS and understand the value of premier industry data from organizations like the MGMA to benchmark your worth.
With soaring demand and a robust salary outlook, there has never been a better time to pursue a leadership role in the business of healthcare.