Chief Medical Officer: Salary and How to Become One

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Although clinician roles are integral to delivering high-quality patient care, the importance of administrative skills within a hospital or large-scale health care facility can’t be overstated. For nurses and physicians to perform at their best, they need the support of administrators to ensure that they have the equipment and resources they need and that the high standards of patient safety, comfort, and convenience are being met.

A hospital that doesn’t prioritize its administrative duties is prone to mistakes that can negatively impact the organization and the patients who it’s responsible for. Not keeping up with regulatory compliance, having insufficient hospital personnel, and lacking essential resources to deliver patient care are just a few examples of what can happen when administrative leadership fails to support its team of clinicians.

For a health care organization to succeed, it requires the experienced leadership of a chief medical officer (CMO). CMOSs are physician leaders who provide high-level administrative management to medical organizations, ensuring that they’re properly managed and that health care providers possess the training and proper resources to perform their best work.

Considering that a CMO is responsible for a blend of clinical and administrative duties, the role is demanding yet highly rewarding. Chief medical officers must possess advanced clinical training, leadership skills and an advanced education that qualifies them for the role.

What Does a Chief Medical Officer Do?

While physicians and nurses work on the patient-facing side of health care, administrators work behind the scenes to support them. Developing the department’s work schedule, handling patient billing and monitoring the budget all fall on the administrative side of health care. Considering that a CMO is one of the highest-level roles in health care, prospective health care leaders may want to know what a chief medical officer does.

One of the most important things to know about the CMO position is that it’s one of health care’s rare dual roles. In addition to being advanced physician leaders working alongside fellow clinicians, CMOs are members of the executive leadership team. Serving as clinicians and health care executives makes CMOs uniquely qualified to assess departments and communicate their observations to company leadership.

Chief medical officers generally work in tandem with other executives, focusing on objectives related to medical outcomes, efficiencies, quality, and safety. CMOs act as internal liaisons with the distinction of having significant influence among their fellow executives. They usually work in hospitals and large-scale health care facilities, but they can also be found in health care insurance and consulting environments.

What Is the Typical Chief Medical Officer Job Description?

When discussing a chief medical officer’s job description, it’s important to know that it’ll vary depending on the work environment and the scope of the health care facility. For example, some facilities may require their CMO to be more hands-on in guiding their team of clinicians whereas others may need their CMO to focus on administrative issues. Keeping that in mind, the following are some of the typical duties of a chief medical officer:

Operating on the clinician side as a physician while balancing executive administrative duties
Collaborating with other executives and physician leaders to assess the needs of the organization
Staying current and maintaining compliance with federal, state, and local laws and safety regulations
Working with department heads, coordinating budgets, determining equipment needs, and overseeing processes
Performing key financial duties, including a review of budgets and financial statements
Actively participating in the training and development of their facility’s clinicians
Ensuring that patients are provided with high-quality medical care by skilled clinicians
Researching new technologies and equipment that may promote better patient outcomes
Working with the chief information officer (CIO) to ensure that the medical team’s information technology (IT) needs are met
Recruiting and training other managers as well as physicians
Serving as a liaison between company leadership and the medical staff
Identifying areas of opportunity to improve processes and clinical services, make the facility safer, and cut costs when necessary
Providing regular reports and updates to the CEO and board of directors

Although their roles are similar in nature, it’s important to know that medical directors aren’t the same as chief medical officers. What differentiates the two roles is that medical directors can be found in various health care facilities — such as nursing homes, urgent care clinics, and residential care units — whereas chief medical officers only work in hospitals, insurance, or consulting settings. Another differentiator is that medical directors often work in small facilities; by comparison, CMOs tend to work in large-scale facilities and oversee more people.

What Are the Steps for How to Become a Chief Medical Officer?

Based on a chief medical officer’s job description, it’s clear that the role demands an exceptional level of clinical and administrative skill and knowledge. How to become a chief medical officer is a matter of pursuing an education, gaining relevant on-the-job experience, and earning promotions to rise through the ranks. Below are the main steps.

Step 1: Earn an Undergraduate Degree

Since every chief medical officer is expected to lead a team of clinicians, a student’s first order of business is to meet the eligibility requirements for medical school. One of the main requirements is earning a four-year undergraduate degree. Although the major of the degree won’t affect the student’s eligibility, many aspiring CMOs focus on biochemistry, biology, business administration, or pre-medicine.

During their undergraduate degree program, students should be mindful of the eligibility requirements they must meet to be accepted into medical school. Most medical schools have minimum course requirements, which include the following:

Physics
Organic chemistry
General chemistry
Biology
Mathematics

Kaplan — an organization that specializes in MCAT test preparation — reports that courses in English, biochemistry, psychology, and sociology may be required for certain medical schools. Further, it notes that courses in medical anthropology and a foreign language aren’t required but can be valuable in a medical school environment. Students who go the pre-medicine route during their undergraduate program often take valuable courses that prepare them for future educational endeavors.

Step 2: Earn a Graduate Degree

Aspiring health care leaders can facilitate their journey to becoming a CMO by earning a graduate degree. During the master’s program, students will build upon the education they received at the undergraduate level. Of course, students are encouraged to consider graduate programs that are within the realm of health care, although it’s not uncommon for CMOs to have a master’s degree.

Ultimately, students should consider the learning path that best supports their career aspirations. The role of a CMO demands exceptional clinical skills, but the administrative side shouldn’t be overlooked. Completing a relevant graduate degree — such as USC’s Master of Public (MPH) program — can help prospective professionals hone the health leadership and management skills that are essential to being an effective CMO.

Step 3: Complete Medical School

Medical school is a four-year program that comprises two parts. The first part is known as pre-clinical. During this phase, students learn about the various functions and structures of the anatomy, basic medical concepts, diseases, how to take a patient’s medical history, the process of diagnosing a patient, and how to administer treatment and develop competencies a physician should have.

After pre-clinicals have been completed, students will move on to the clinical portion of their training. Clinicals apply the concepts students learned during the pre-clinical phase in a hands-on environment under physician guidance. This gives students real-world experience working with patients and allows them to develop their skills while under supervision.

It’s worth noting that there are variations between medical schools, such as their curriculum and how students are graded. For example, some medical schools may grade on a letter scale, while others assess students on a pass/fail basis. Students are encouraged to review the curriculum and grading systems of their top schools before applying.

Step 4: Complete Residency

Upon completion of medical school, graduates will have earned their medical degrees and are ready to obtain the licensure necessary to work in a hospital through the process of medical residency. Being a medical resident means that an individual is qualified to work as a doctor; however, they’re still in training and they require supervision from more experienced doctors.

During the first year of residency, medical residents are referred to as interns. Medical interns are always under close supervision by the attending physician and are limited in the patient care they may provide. Beginning in the second year, doctors in residency are given more freedom in what patient care they may deliver and require less direct supervision.

Since medical residents learn on the job, they typically start out with less-demanding tasks, such as completing discharge paperwork, ordering diagnostic tests and reviewing test results. As they grow into the role, medical residents will be tasked with assignments that are more complex.

During residency, an individual will select a specialty. Examples include pediatrics, oncology and women's health. The typical residency program can last anywhere from three to seven years. Residency length is dependent on the specialty and how quickly the individual progresses in their learning.

Step 5: Practice as a Physician

After completing their residency, individuals are qualified to work as practicing physicians in a hospital, a health care facility, a specialty care unit or private practice. Considering that chief medical officers are expected to be clinical leaders capable of providing guidance to physicians and nursing staff, gaining several years of experience is one of the most important aspects of becoming a CMO.

The typical duties of a physician include the following:

Documenting patient history
Performing physical examinations
Ordering diagnostic tests and analyzing the results
Developing and implementing effective treatment plans that ensure positive patient outcomes
Consulting with patients and their families about medical conditions and answering their questions
Providing patients with guidance on how to take better care of themselves
Providing training and development to less-experienced physicians

Step 6: Earn Administrative and Managerial Experience

While chief medical officers need to demonstrate advanced clinical skills, they should also have experience on the administrative side of health care. Once a physician has earned several years of clinical experience, they should consider pursuing a role in health care management to earn administrative experience.

Physicians are encouraged to apply to be health care administrators, medical practice managers or health care department managers. When applying for roles in health care management, some physicians may find it helpful to earn a professional certification that demonstrates their administrative skills. For example, the American Health Information Management Association (AHIMA) offers a Registered Health Information Administrator (RHIA) certification, which shows potential employers that the physician can:

Prepare hospital budgets
Manage health care staff
Engage with administrative committees
Interact with the administrative and financial parts of the organization
Work with information systems
Manage patient health records
Use medical terminology

Physicians who aspire to become chief medical officers are encouraged to investigate relevant certifications to make themselves stand out among other candidates. AHIMA and the Project Management Institute (PMI) are both great resources that are highly regarded in the health care industry.

Once a physician has secured employment in health care management, they can focus on earning on-the-job administrative experience. To qualify for chief medical officer openings, physicians should aim to have at least a few years’ experience in a health care management role.

What Are the Essential Skills for Chief Medical Officer Positions?

Chief medical officer positions will vary based on work environments, the needs of the facility and the scope of the organization; however, there are some key skills and competencies that CMOs must possess that are standard across the board. Below are skills that can be developed through a combination of academic training and hands-on experience.

Clinical Acumen

Chief medical officers are clinician leaders and are responsible for the ongoing training and development of physicians and other health care providers. Considering the amount of responsibility that the position entails, the CMO position demands a wealth of clinical experience. According to Betterteam, the typical chief medical officer has at least a decade of experience as a clinician.

Communication Skills

Chief medical officers are responsible for instructing fellow clinicians, keeping their staff updated on health care regulations, and serving as liaisons between executive leadership and the health care teams. This means that the CMO position demands effective and clear communication skills in both written and oral forms.

Delegation

A chief medical officer can’t do everything themselves. The administrative and clinical duties of the role are far too demanding; this is why successful CMOs are skilled in delegation. Chief medical officers take the time to learn their staff’s capabilities and areas of strength, so they can assign tasks to the individuals who are most qualified to do them.

Collaboration

Being a chief medical officer means working with health care providers and administrative professionals throughout all levels of the organization. Through effective collaboration, a health care organization is better equipped for problem-solving and efficiently using its human resources. Improving patient outcomes, enhancing communication, celebrating innovation and making processes more efficient are just a few of the byproducts of collaboration.

Financial Skills

At the end of the day, every health care organization is a business with a bottom line. A chief medical officer must maintain the budget and keep a watchful eye on how it’s being spent to ensure that the organization avoids staffing cuts and has the funding for essential medical resources and equipment. Chief medical officers are also integral to ensuring that their organizations meet the financial goals established by the CEO and board of directors.

Leadership

Chief medical officers must demonstrate leadership skills and ethical values that their team of clinicians can believe in. In addition to being a resource of clinical information and guidance, CMOs must possess the ability to motivate their employees and lead by example. CMOs should also serve as advocates for community health and promotion.

What Is the Average Chief Medical Officer's Salary?

According to Payscale, the median chief medical officer salary was approximately $303,600 annually, as of March 2023. Payscale also reports that the lowest 10% of chief medical officers made approximately $187,000 annually, and the highest 10% made approximately $401,000 annually. When discussing salaries, it’s important to note that education, experience, region, certifications, facility size, and other relevant factors will influence how much a chief medical officer is paid.

Regarding job outlook, the U.S. Bureau of Labor Statistics (BLS) projects the role of medical and health services managers to grow by 28% by 2031, much faster than the national average of 5% for all occupations combined. This equates to more than 136,000 new health care management roles needing to be filled within the next decade.

Promote Patient Care Through Effective Administration

Experienced chief medical officers who possess advanced administrative and clinical skills are in high demand in the health care industry. Successful CMOs promote the quality, safety and efficiency of patient care while serving as essential members of health care leadership. Although chief medical officer positions are demanding, they’re also highly rewarding and allow individuals to shape the face of their organization on both the clinical and administrative fronts.

Individuals who want to learn more about how to become a chief medical officer are encouraged to start by earning an education, such as USC’s MPH program. Available in five distinct concentrations, the program gives students the flexibility in their learning path to focus on the area of health care that interests them most. Learn more about the program and explore how it supports your professional goal of becoming a chief medical officer.