In this Article
By: All Allied Health Staff
Healthcare managers play a crucial role in California’s healthcare system by ensuring the efficient and effective operation of medical facilities, from major metropolitan hospitals to small-town clinics. They are responsible for overseeing administrative functions, managing budgets, ensuring regulatory compliance and leading teams of healthcare professionals. With the state’s diverse population and rapidly changing healthcare landscape, healthcare managers in California must navigate complex challenges that include rising costs of living, technological advancements and evolving patient needs.
Salaries for healthcare managers in California are as diverse as the state itself, but by considering the healthcare management landscape and the many factors that influence a person’s earning potential, you can have a better understanding of what you may be able to earn as a healthcare manager in California.
Quick view
Data from the U.S. Bureau of Labor Statistics (BLS) indicates that there are about 57,310 people employed as medical and health services managers in California, the most of any state in the country. The median wage per hour is $66 and the forecasted job growth for the coming decade is 23.2%, which is much faster than the average across all occupations.
Healthcare managers can work for many different organizations such as large hospital systems, government agencies and health insurance companies. Some of the biggest healthcare management employers in California include:
- Kaiser Permanente, Oakland, multiple locations, CA:
- One of the largest health plans in California and the United States, Kaiser Permanente operates over 30 hospitals and over 400 medical offices across California with their national headquarters located in Oakland.
- Dignity Health, San Francisco, multiple locations, CA:
- A large healthcare system that has numerous locations across California, Arizona and Nevada and is headquartered in San Francisco.
- University of California (UC) Health, multiple locations, CA:
- The UC Health system consists of six academic health centers, 21 health professional schools, four children’s hospital campuses and a Global Health Institute.
- Cedars-Sinai, Los Angeles, CA:
- The Cedars-Sinai Medical Center is one of the largest nonprofit healthcare centers in the state with extensive operations across Los Angeles.
- Anthem Blue Cross Blue Shield, multiple locations, CA:
- Anthem is one of the largest health insurance companies in the country with many employees located in California.
- Sutter Health, Sacramento, CA:
- Based in Sacramento, Sutter Health is an integrated healthcare network serving millions of Californians across Northern California.
Salary statistics
While the median salary for medical and health services managers nationwide is $117,960, your earning potential can vary depending upon several factors, including where you work and live, how much experience you have, what professional certifications you have earned, whether you specialize in an area—such as facilities management or IT—and your level of education.
Median healthcare manager salary in California
The median annual salary for medical and health services managers in California is $136,500. Keep in mind that numerous factors such as experience, education level and location can all influence local salaries.
Medical and Health Services Managers
10%$63,200
25%$90,790
50%$136,500Median
75%$203,400
90%N/A
Median Hourly Wage$66
Job growth23.2%
Total Employment68,800
| Metro area | Median Salary | Bottom 10% | Top 10% |
|---|---|---|---|
| San Francisco-Oakland-Fremont, CA | $168,750 | $70,990 | N/A |
| San Jose-Sunnyvale-Santa Clara, CA | $167,460 | $64,910 | N/A |
| Vallejo, CA | $166,260 | $82,820 | $223,260 |
| San Diego-Chula Vista-Carlsbad, CA | $160,640 | $76,900 | N/A |
| Santa Rosa-Petaluma, CA | $155,640 | $76,090 | $223,920 |
| Sacramento-Roseville-Folsom, CA | $149,730 | $76,650 | $222,080 |
| Modesto, CA | $140,020 | $63,220 | $219,360 |
| Chico, CA | $139,450 | $70,730 | $207,560 |
| Santa Cruz-Watsonville, CA | $136,030 | $70,630 | N/A |
| Fresno, CA | $135,420 | $66,100 | $234,570 |
Source: U.S. Bureau of Labor Statistics (BLS) 2024 median salary; projected job growth through 2034. Actual salaries may vary depending on location, level of education, years of experience, work environment, and other factors. Salaries may differ even more for those who are self-employed or work part time.
Salary range for healthcare managers in California
According to the BLS, the salary range for medical and health services managers in California spans from $63,200 to per year, though some people may earn more or less than this range, depending upon factors such as years in the field and location within the state. This accounts for early career professionals as well as seasoned healthcare managers and other factors including experience and education.
Pay by metro area
Your earning potential can change drastically within a given state, especially one as large and diverse as California. Populated metropolitan areas, for example, tend to have jobs that pay a lot more, but it also usually costs a lot more to live in those areas. Examples would be cities in the Bay area, and large areas such as Los Angeles and San Diego. In fact, the BLS says that the Los Angeles-Anaheim-Long Beach, CA metro area is the second highest employer of healthcare managers in the U.S. Check out what the BLS reports as the highest paying metropolitan areas in the country, as many of them are located in California.
Salary growth and job outlook in California
The BLS estimates that the employment of medical and health services managers nationwide will grow 23.2% through the next decade, which is much, much faster than the average across all occupations.
There are a few reasons the BLS attributes to this rapid growth. First, more healthcare services are expected to be needed as the large baby-boom population continues to age. In addition, they expect more healthcare administrators and managers with health information technology (IT) experience will be needed as electronic health records (EHR) systems become even more widespread.
California’s population growth has slowed in recent years, however, which could potentially impact job growth in the state. According to the Public Policy Institute of California, California has experienced its slowest rates of growth ever recorded since 2000, and California’s population actually declined by several hundred thousand people between 2020 and 2023. The COVID-19 pandemic was of course a major factor during that time as people left the state in search of places with a lower cost of living.
Even so, California holds strong as the most populous state in the entire country. In fact, one in eight residents in the United States lives in California. Healthcare managers are undoubtedly needed to operate the healthcare organizations that sustain California’s immense population which continues to grow, albeit at a slower rate.
Factors affecting healthcare manager salaries in California
Many different factors can influence salaries in the healthcare management field in California, such as:
- Experience:
- Experience is a major factor when it comes to salaries. Healthcare managers with more extensive resumes and years of experience almost always earn more than entry-level professionals.
- Education and certifications:
- People with higher levels of education still tend to make more on average, according to the BLS. In addition, relevant industry certifications could increase your value as an employee and lead to higher paying roles.
- Type of employer:
- Larger companies often have the resources to provide more competitive salaries and employee perks compared to smaller healthcare organizations. On the other hand, people working for smaller companies sometimes have jobs that require wearing more hats, and therefore may be compensated well for their multifaceted roles.
- Location:
- Salaries can vary significantly depending on where you live and work in California. Although median annual salaries everywhere remain consistently above $100,000, areas like Yuba City and Merced don’t pay quite as much as San Francisco or Los Angeles.
How can I know if I am being paid fairly as a healthcare manager in California?
There are several things to consider in order to know if you’re being paid fairly as a healthcare manager in California. Taking the time to conduct some research could yield important insights into your current salary, like whether you’re being underpaid or if your salary is actually quite generous. Start by considering some of these factors:
Education and training
Since the field of healthcare management can encompass many different types of roles—from finance professionals to compliance and everything in between—there are no universal education requirements for healthcare managers in California. Still, you should expect to need at least a bachelor’s degree in order to become a healthcare management professional. If your bachelor’s degree is in a subject unrelated to healthcare management, you may want to consider getting a master’s degree in healthcare administration or management to supplement your existing education.
Whether it’s a bachelor’s degree or a graduate degree, consider some of these fields of study which would be highly applicable to a career in healthcare management:
- Healthcare administration
- Healthcare management
- Public health
- Health sciences
- Business administration
Ongoing professional development and training can also significantly contribute to your knowledge and advancement within the healthcare management field. Consider, for example, earning one or several healthcare management certifications such as the Certified Healthcare Access Manager (CHAM) and others.
Cost of living considerations
It’s always important to consider the cost of living when evaluating healthcare manager salaries in California. This doesn’t only mean the average cost of housing but can also include expenses like groceries, transportation, healthcare and more. By evaluating the cost of living of a given area, it can help you determine how “livable” your wages are.
California is one of the most expensive places to live in the entire country. Even less populated areas in the state have an overall cost of living that is typically higher than other parts of the country. RentCafe reports that the cost of living in California is 38% higher than the national average, and housing alone is 97% higher than the national average.
The high cost of housing in California is a complicated issue made worse by many different factors. One of them is the lack of new housing construction that hasn’t kept up with demand, driving prices even higher.
Californians may find some relief from the high cost of housing in less expensive cities such as Fresno, Redding and Bakersfield. Even though these cities still have a cost of living that is higher than the national average, they are about 20% lower than the state average.
California professional associations for healthcare managers
Joining a professional association within the industry can be a fantastic opportunity to network with other professionals, stay current with the latest industry trends and developments and get access to a range of benefits that many membership organizations offer.
- The California Association of Healthcare Leaders (CAHL) is an independent chapter of the American College of Healthcare Executives (ACHE) serving California healthcare professionals.
- As an affiliate of the American Health Information Management Association (AHIMA), the California Health Information Association (CHIA) is a membership organization for health information management professionals.
- The California Society for Healthcare Risk Management (CSHRM) is a local chapter of the American Society for Healthcare Risk Management (ASHRM), founded to provide its members a local resource for healthcare risk management education needs, among other resources.
- The Healthcare Financial Management Association (HFMA) has chapters for both Northern California and Southern California for financial healthcare managers specifically.
Find healthcare management salaries for different states
If you’re beginning your search to find the right state to practice your healthcare management education, read our comprehensive and informative salary guides for some popular states: California | New Jersey | New York | Texas