The cost is typically two to three hundred a month, yes.
I wouldn't say anybody spends that much time each day on each server - there's really no need for it. Experienced system administrators can set up automated monitoring for most functions. That way, if something is outside normal parameters, they can be alerted to take a closer look.
When you pay for systems administration, you're really paying for two things:
- Experience in setting up a stable system that takes care of itself in most cases. (This is not trivial.)
- A rapid, competent response when something does go wrong.
Systems administration is an odd job in that when all is at its best, a sysadmin does absolutely nothing.