Key Takeaways
- The May 2025 BLS national mean wage was $46,800 for medical secretaries and administrative assistants, $56,790 for medical records specialists, and $140,970 for medical and health services managers.
- Private industry benefits represented 29.9 percent of total compensation in December 2025, so wage cost divided by 0.701 gives a useful benefits included benchmark before practice overhead.
- A benefits included medical secretary benchmark is about $66,762 a year, while a medical records specialist benchmark is about $81,013. These are estimates, not reported BLS totals for either occupation.
- Turnover and compliance costs should remain separate budget lines because neither is included in occupational wage data or in the benefits multiplier.
- CMS recorded $5.3 trillion in US health spending in 2024, while peer reviewed research found billing costs varied sharply by encounter type and setting.
Healthcare administrative staffing costs in 2026 start with wages, but wages are only the first line in a useful budget. Benefits, replacement costs, training, privacy controls, and billing complexity all sit outside the salary figure. Combining them into one unsupported multiplier hides the decisions a practice needs to make.
This guide uses the latest national data available as of September 12, 2026. Wage figures come from the US Bureau of Labor Statistics Occupational Employment and Wage Statistics program for May 2025. Benefit costs come from the BLS Employer Costs for Employee Compensation release for December 2025. CMS data and peer reviewed research provide context for the administrative workload. Every calculation below is labeled as an estimate.
2026 wage benchmarks for healthcare administrative roles
The BLS May 2025 national occupational table reports employment and wages across the United States. It is a national survey, not a forecast of what every practice will pay in 2026. Local labor markets, shift requirements, credentials, and job scope can move an offer well above or below the national figure.
| Role | National employment | Mean annual wage | Median hourly wage | What the role often covers |
|---|---|---|---|---|
| Medical secretary or administrative assistant | 961,610 | $46,800 | $22.08 | Scheduling, patient communication, charts, correspondence, and office support |
| Billing and posting clerk, all industries | 404,060 | $51,070 | $23.32 | Bills, account records, payment posting, and follow up |
| Medical records specialist | 194,720 | $56,790 | $24.59 | Records review, coding, reimbursement support, and data quality |
| Medical and health services manager | 597,080 | $140,970 | $59.55 | Business operations, staffing, compliance processes, and department management |
Source: BLS Occupational Employment and Wage Statistics, May 2025. The billing clerk category covers all industries, so it is a broad comparator rather than a healthcare specific wage.
The BLS Occupational Outlook Handbook for medical records specialists reports a 2025 median annual wage of $51,140. It also shows meaningful variation by employer: the median was $59,120 in hospitals and $47,120 in physicians' offices. That industry split is a better planning signal than a single national number when a clinic competes with a nearby hospital system.
Benefits add about 43 cents per wage dollar
In December 2025, private industry employers paid an average of $46.15 per employee hour in total compensation. Wages and salaries accounted for $32.36, or 70.1 percent, while benefits accounted for $13.79, or 29.9 percent. The release includes paid leave, supplemental pay, insurance, retirement, and legally required benefits. See the BLS Employer Costs for Employee Compensation release.
Dividing a wage by 0.701 creates a national, benefits included planning benchmark. It is equivalent to multiplying the wage by about 1.426. This is an estimate. BLS did not publish these occupation specific totals, and the private industry average does not describe every healthcare employer.
| Role | BLS mean wage | Estimated benefits | Estimated wage plus benefits |
|---|---|---|---|
| Medical secretary or administrative assistant | $46,800 | $19,962 | $66,762 |
| Billing and posting clerk | $51,070 | $21,783 | $72,853 |
| Medical records specialist | $56,790 | $24,223 | $81,013 |
| Medical and health services manager | $140,970 | $60,128 | $201,098 |
Method: wage divided by 0.701, with the difference recorded as estimated benefits. Dollar amounts are rounded to the nearest dollar.
These totals still exclude recruiting, vacancy time, office space, equipment, software, supervision, and compliance administration. Practices should add those costs from their own general ledger rather than applying another generic percentage.
A transparent cost model for one administrative hire
Consider a medical administrative employee paid the national mean wage of $46,800. The following model keeps reported data separate from assumptions.
| Cost component | Annual amount | Basis |
|---|---|---|
| Wage | $46,800 | BLS May 2025 national mean |
| Benefits | $19,962 | BLS private industry compensation ratio |
| Recruiting and onboarding reserve | $2,340 | Scenario assumption: 5 percent of wage |
| Technology and workspace | $4,800 | Scenario assumption: $400 per month |
| Compliance training and administration | $2,000 | Scenario assumption, replace with actual budget |
| Total annual planning cost | $75,902 | Sum of the rows above |
Only the first two lines derive from BLS data. The remaining lines demonstrate how a practice can make its assumptions visible. A remote role may use less physical space but require different equipment, access controls, and supervision. A hospital may have shared compliance resources that reduce the per employee amount, while a small practice may buy those services externally.
Turnover is a probability weighted cost
Turnover belongs in the budget even when no employee has resigned yet. It is easier to estimate when three inputs stay separate:
- Expected annual turnover rate for the role or team.
- Cost of one departure, including recruiting, training, vacancy coverage, and lost productivity.
- Number of employees exposed to that risk.
The formula is:
Expected annual turnover cost = headcount × turnover rate × cost per departure
For example, a five person team with an assumed 20 percent annual turnover rate expects one departure a year. If the practice estimates $18,000 for recruiting, coverage, and ramp time, the expected turnover provision is $18,000, or $3,600 per position. Both the turnover rate and departure cost are scenario assumptions in this example. They are not BLS or CMS estimates.
This method is more defensible than saying every replacement costs a fixed percentage of salary. It also lets a practice test whether better onboarding, documentation, or scheduling would cost less than the expected disruption.
Compliance overhead is not part of the wage
Healthcare administrative work often involves protected health information, payer rules, record retention, and access management. A staffing budget may need to cover:
- privacy and security training;
- role based access setup and removal;
- background checks where required by policy or law;
- secure equipment and communications;
- audit logs, quality checks, and incident response preparation;
- manager time for procedure updates and monitoring.
The BLS Occupational Requirements Survey found that on the job training was required for 96.1 percent of medical secretaries and administrative assistants in 2025. Prior work experience was required for 39.5 percent. Those findings cover job requirements, not the dollar cost of compliance, but they show why a zero training assumption is weak.
Do not treat all administrative work as interchangeable. Appointment reminders and general inbox routing carry different risks from coding, payment posting, or handling clinical records. Cost estimates should follow the actual task list and the systems each worker can access.
Why healthcare administration deserves its own budget line
CMS reported that US national health expenditures reached $5.3 trillion in 2024, equal to $15,474 per person and 18.0 percent of gross domestic product. The CMS National Health Expenditure Accounts include government administration and nonmedical insurance expenditures, but they do not measure the staffing bill of an individual provider.
Provider side research shows why local measurement matters. A 2018 JAMA study used time driven activity based costing at one large North Carolina academic health system. Researchers interviewed 27 administrators and 34 physicians in 2016 and 2017. The system had more than 1,600 physicians, 28,000 support staff, 1,500 inpatient beds, and more than 2 million annual outpatient visits.
The study estimated billing and insurance related costs of $20.49 for a primary care visit, $61.54 for an emergency department visit, $124.26 for a general inpatient stay, $170.40 for an ambulatory surgical procedure, and $215.10 for an inpatient surgical procedure. Those costs represented 3.1 percent to 25.2 percent of professional revenue, depending on the encounter.
The figures should not be applied as 2026 national rates. They come from one academic system and use 2016 and 2017 process data. Their value is methodological: administrative cost changes with the encounter, workflow, and people involved. A practice that measures minutes by activity can find its own high cost steps instead of relying on an industry wide guess.
How to compare staffing options
Start with the work, not the job title. List recurring tasks, monthly volume, service hours, required credentials, systems used, and the manager who checks quality. Then compare options on the same basis.
| Question | In house employee | Managed remote support |
|---|---|---|
| Wage or service fee | Salary or hourly wage | Contracted fee |
| Benefits and payroll costs | Employer funded | Usually included in fee, confirm contract terms |
| Recruiting and replacement | Employer manages | Provider terms vary |
| Equipment and systems | Employer funds and controls | Responsibility must be defined |
| Privacy and security | Employer remains accountable | Controls and responsibilities must be documented |
| Coverage | Depends on staffing schedule | Depends on service agreement |
A healthcare virtual assistant can handle defined administrative tasks such as scheduling, nonclinical follow up, and inbox support when access and supervision are appropriate. Organizations comparing a managed option can also review healthcare virtual assistant services. Neither arrangement removes the healthcare organization's responsibility to assess vendors, control access, and define permitted work.
A practical 2026 budgeting checklist
Use local wage data when available, then show each assumption separately:
- Choose the closest BLS occupation and the correct local market.
- Add benefits using the organization's actual benefit cost. Use the 1.426 national private industry multiplier only as a benchmark.
- Add recruiting and turnover as probability weighted costs.
- Price software, equipment, workspace, and management time.
- Identify compliance costs tied to the worker's real access and duties.
- Divide the annual total by productive hours or completed work units.
- Run a low, expected, and high case before approving headcount.
The result is a staffing cost model that a finance or operations leader can audit. It also avoids confusing national healthcare spending, a reported occupational wage, and a practice's own employment cost.
Sources
- BLS, National Occupational Employment and Wage Estimates, May 2025
- BLS, Medical Records Specialists, Occupational Outlook Handbook
- BLS, Employer Costs for Employee Compensation, December 2025
- BLS, Medical Secretaries and Administrative Assistants, Occupational Requirements Survey
- CMS, National Health Expenditure Fact Sheet, historical 2024 data
- CMS, National Health Expenditure Accounts historical data
- JAMA, Administrative Costs Associated With Physician Billing and Insurance Related Activities at an Academic Health Care System
Frequently asked questions
What does a healthcare administrative employee cost in 2026?
The BLS May 2025 national mean wage for a medical secretary or administrative assistant was $46,800. Applying the December 2025 private industry compensation ratio produces an estimated $66,762 for wages and benefits. Recruiting, turnover, tools, workspace, management, and compliance costs remain additional.
How much should a practice add for employee benefits?
BLS reported that benefits were 29.9 percent of private industry compensation in December 2025. That makes total compensation about 1.426 times wages at the national aggregate level. An employer's actual plan costs are better than the national ratio for a final budget.
Are compliance costs included in BLS wages?
No. Occupational wages measure employee pay. A practice must separately budget for training, secure systems, access controls, quality checks, and management time related to privacy and compliance.
How should a practice estimate turnover cost?
Multiply headcount by the expected turnover rate and the estimated cost of one departure. Build the departure cost from recruiting, temporary coverage, training, and ramp time. Label each assumption and test more than one scenario.
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