In this Article
By: All Allied Health Staff
What sets Texas apart for healthcare administrators?
Texas stands out as a state for healthcare administrators for several reasons, making it an attractive destination compared to other states. Here are the main reasons why:
High demand for services:
Texas has a large and growing population, including a significant aging demographic, driving demand for healthcare services. The state also has a high number of hospitals, outpatient clinics and long-term care facilities, providing diverse employment opportunities for healthcare administrators.
Healthcare industry presence:
Texas is home to major healthcare systems such as HCA Healthcare, Baylor Scott & White Health and Texas Health Resources. Large urban areas like Houston, Dallas and San Antonio feature renowned medical institutions like the Texas Medical Center, the largest medical complex in the world. Because several of the systems present in Texas operate on a regional or even national scale, career growth opportunities may be pursued.
Strong salaries:
Healthcare administrators in Texas typically earn competitive salaries, with a median annual wage that is often higher than the national median. The job growth rate for healthcare management roles in Texas is projected to remain strong, supported by continuous investments in healthcare infrastructure.
Lower cost of living:
Compared to states like California or New York, Texas offers a more affordable cost of living, particularly in suburban and rural areas. No state income tax further enhances take-home pay, making healthcare administrative salaries more lucrative.
Friendly business environment:
Texas has a business-friendly regulatory environment, encouraging healthcare startups and hospital expansions. As such, the state is attractive to healthcare investors, fostering innovation in healthcare delivery and administrative technologies.
Workforce, job outlook and wage data
Data from the U.S. Bureau of Labor Statistics (BLS) indicates that there are 51,030 people employed as medical and health services managers in Texas, making it the second largest state in the country for employment of healthcare administration professionals. The median wage per hour is $51 and the forecasted national job growth for the coming decade is 23.2%, which is much faster than the average for all occupations. While this national job outlook is positive, Texas’ job growth rate is a stunning 43% through 2030, which means the state will be adding around 4,790 positions per year. This presents opportunity for those desiring to enter the healthcare administration field in the state.
Salary statistics for Texas
While the median salary for healthcare administrators nationwide is $117,960, what you earn may be dependent upon where you work and live, how much experience you have, what professional certifications you have earned, what area of operations—facilities management, financial management, compliance, HR or IT—you work in and the level of education you’ve completed.
Median healthcare administrator salary in Texas
The median annual salary for healthcare administrators in Texas is $106,590. The BLS stated that the Killeen-Temple metro area held the number six spot in their top 10 for the highest concentration of heathcare administrator jobs in the U.S. as well as being one of the highest paying metro areas in the state. Take a look at the top 10 highest paying metro areas:
Medical and Health Services Managers
10%$62,130
25%$81,910
50%$106,590Median
75%$135,550
90%$197,790
Median Hourly Wage$51
Job growth23.2%
Total Employment57,150
| Metro area | Median Salary | Bottom 10% | Top 10% |
|---|---|---|---|
| Houston-Pasadena-The Woodlands, TX | $119,990 | $72,990 | $205,390 |
| Killeen-Temple, TX | $117,400 | $70,220 | $179,400 |
| Dallas-Fort Worth-Arlington, TX | $111,610 | $61,760 | $206,650 |
| San Antonio-New Braunfels, TX | $107,760 | $65,160 | $185,270 |
| Waco, TX | $106,650 | $66,530 | $192,670 |
| Austin-Round Rock-San Marcos, TX | $106,270 | $53,670 | $216,130 |
| Midland, TX | $106,040 | $67,620 | $168,810 |
| Lubbock, TX | $105,070 | $62,000 | $162,760 |
| Odessa, TX | $102,440 | $61,720 | $166,870 |
| Sherman-Denison, TX | $101,880 | $65,740 | $137,060 |
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 ranges for healthcare administrators in Texas
According to the BLS, the salary range for healthcare administrators in Texas spans from $62,130 to over $197,790 per year. In Texas, like in other states, the salary range for healthcare administrators can vary based on factors such as experience, education, location, whether or not you specialize and the facility size. Here’s a breakdown:
- Low end salary: Entry-level roles, usually with a bachelor’s degree, working in rural areas or small facilities.
- Mid-range salary: Mid-level roles with a master’s degree, working in mid-sized cities or outpatient settings.
- High end salary: Senior-level positions with extensive experience, or executive-level roles in large healthcare systems or major metro areas.
Location within Texas
- Rural and smaller towns: Lower pay, around $80,000 to $100,000, but often with lower competition and cost of living.
- Major metro areas: In huge metro areas such as Houston, Dallas and Austin, higher wages are usually paid due to demand, competition and cost of living. Healthcare administrators may earn in the range of $140,000 to $180,000 in senior roles.
- Mid-sized cities: In cities such as San Antonio, El Paso and Fort Worth, salaries may range from $100,000 to $140,000.
Specialization:
- Clinical administration: May pay more if managing specialized departments.
- Finance or operations management: May offer higher pay, especially for roles like Chief Financial Officer (CFO) or Chief Operating Officer (COO).
- Public health administration: Salaries vary but typically fall in the mid-range, though you may earn more with a Master of Public Health (MPH).
Pay by metro area
Houston emerges as a leading city for healthcare administrators when considering salary, the number of healthcare facilities and a moderate cost of living. The presence of the Texas Medical Center provides unparalleled opportunities, and while the cost of living is slightly above average, it is offset by higher median salaries. Additionally, Houston’s diversified economy and cultural amenities contribute to its appeal. Here are the next four metro areas in Texas that offer better-than-average pay.
| Metro area | Median salary | Other positives |
|---|---|---|
| Killeen-Temple | $112,130 (BLS) | Presence of major hospitals like Baylor Scott & White Medical Center. Cost of Living is generally lower than larger Texas cities. |
| Austin-Round Rock | $109,280 (BLS) | Rapidly growing healthcare sector with institutions like St. David’s HealthCare and Seton Healthcare Family. Cost of living is slightly higher than other Texas cities. |
| Dallas-Fort Worth-Arlington | $115,630 (BLS) | Numerous healthcare systems, including Texas Health Resources and Baylor University Medical Center. Cost of living is higher than other Texas cities. |
| San Antonio | $104,080 (BLS) | Major providers include University Health System and Baptist Health System. Cost of living is considerably lower than other Texas cities and the national average. |
Here’s what the BLS reported as the highest paying metropolitan areas in the country:
And as far as employment level in metropolitan areas, here’s what the BLS reported as the top 10 highest employers of healthcare administrators in the U.S. They reported that the Dallas-Fort Worth-Arlington metro area is the fourth highest employer of healthcare administrators in the U.S., while Houston-The Woodlands-Sugar Land took the number six spot for highest employment.
Regional factors affecting healthcare administrator salaries in Texas
Healthcare administrator salaries in Texas can vary due to several regional factors within the state and the broader South. Here are the key influences:
- Population density and healthcare demand:
- Higher salaries due to larger populations and higher demand for healthcare services have major hospital systems, academic medical centers and specialized facilities. Rural areas with lower demand often result in lower salaries. However, rural healthcare administrators may receive incentives like loan forgiveness or bonuses to address staffing shortages.
- Cost of living:
- Cities like Austin and Dallas generally offer higher salaries to offset living expenses, while areas such as San Antonio and El Paso offer moderate salaries, but the lower cost of living provides better purchasing power.
- Healthcare infrastructure and facility types:
- Regions with large health systems, like Houston’s Texas Medical Center, may pay more due to the complexity of managing extensive networks. Outpatient and specialty clinics are more common in suburban areas, and these facilities may offer lower salaries compared to hospitals. Long-term care and rehabilitation centers offer salaries that are typically moderate but may be competitive in areas with an aging population.
- Industry competition:
- Cities with multiple major healthcare providers may drive up salaries through competitive hiring practices, while in rural areas with fewer healthcare employers, lower competition may suppress wages. Cities like Houston and Dallas with thriving industries lead to better-funded hospitals and competitive salaries. San Antonio’s medical facilities serve a large military population serving at JBSA-Lackland AFB, which may impacting salary levels.
- Educational access:
- Regions with institutions like the University of Texas or Texas A&M may see higher salaries due to a more skilled labor pool while rural areas may increase pay to attract talent if there’s a lack of local qualified professionals.
- Government policy:
- Texas did not expand Medicaid under the Affordable Care Act, impacting healthcare funding and limiting salary growth in certain regions. Regions with more favorable healthcare policies and hospital funding may offer higher wages.
Related healthcare careers and salaries
Since the field of healthcare administration can encompass many different types of roles—from finance professionals to compliance and everything in between—salaries can vary widely. Here are some national compensation comparisons to related healthcare administration careers:
Find comprehensive salary guides for healthcare administration in popular states: Arizona | California | Florida | New Jersey | New York | Texas
Ways to increase your salary (education, certifications)
To increase your salary as a healthcare administrator in Texas, consider these three effective strategies:
Advance your education and credentials:
Earning a Master of Health Administration (MHA), Master of Business Administration (MBA) with a healthcare focus or Master of Public Health (MPH) may significantly increase your earning potential.
Consider professional certifications such as the Certified Healthcare Executive (CHE), Fellow of the American College of Healthcare Executives (FACHE) or the Certified Medical Manager (CMM). Developing expertise in areas like healthcare informatics, finance or hospital operations can position you for higher-level roles.
Gain experience and specialize:
Start by managing smaller departments and progressively take on larger administrative responsibilities. Becoming a department manager, director of operations or eventually a Chief Operating Officer (COO) may lead to higher pay. Specializing in fields like hospital administration, long-term care management or healthcare finance may provide salary growth.
Network and continue learning:
Engage with organizations like the Texas Hospital Association (THA) or the American College of Healthcare Executives (ACHE) for networking, mentorship and career advancement opportunities. Stay current with industry trends and innovations through conferences like the Texas Healthcare Trustees Conference, and as you grow in experience and qualifications, actively negotiate your compensation by leveraging market salary data for your role and region.
Professional resources
The following associations offer valuable resources for career development, networking and staying updated on healthcare policies and best practices in Texas.
Texas Hospital Association (THA):
THA provides advocacy, education and networking opportunities for healthcare leaders and administrators. Benefits include legislative support, leadership development programs and conferences such as the Texas Hospital Association Annual Conference.
American College of Healthcare Executives–Texas Chapters (ACHE):
ACHE Texas promotes professional growth and leadership development for healthcare executives through mentorship programs, workshops and certification opportunities. Benefits include access to educational resources, networking events and the opportunity to earn the Fellow of the American College of Healthcare Executives (FACHE) credential. (Chapters in Texas include the North Texas, South Texas, Midwest and Central Texas locations—each has their own website).
Texas Organization of Rural and Community Hospitals (TORCH):
TORCH provides advocacy, support and education for rural healthcare administrators managing small and community hospitals. Benefits include leadership training, policy advocacy and specialized resources for rural healthcare management.