Where Have All the CEOs Gone?

Apr 08, 2014 at 09:51 am by Staff

1 in 5 Hospitals Saw Turnover at the Top in 2013

Turnover in the highest-ranking administrative spot for hospitals increased significantly last year, according to a report released March 10 by the American College of Healthcare Executives (ACHE).

In 2013, hospital CEO turnover tracked at 20 percent, which is the highest rate recorded since ACHE began keeping up with the statistic more than three decades ago. CEO turnover clocked in at 17 percent in 2012 and at 16 percent the two years prior to that. In the first decade of this century, the rate fluctuated between 14-18 percent, with most years hovering between 14 and 15 percent. In 1981, the first year ACHE published this data, hospitals recorded a 14 percent turnover rate.

In 2013, Alaska led the way with a turnover rate of 37 percent. Other states coming in above the national average include Oklahoma, Virginia, Massachusetts and New York. Eight southeastern states, including Tennessee (24 percent), also saw higher-than-average rates. On the opposite end, 16 states plus the District of Columbia were deemed low-turnover states with Vermont and Rhode Island logging zero changes in CEO status last year.

“The increase in the turnover rate may be indicative of a combination of factors, including an increased number of baby boomers seeking retirement, the emerging trend toward consolidation in our industry and the complexity and amount of change going on in healthcare today,” said Deborah J. Bowen, FACHE, CAE, president and CEO of ACHE. “The increase in the rate reinforces the need for healthcare leaders to work with their boards to ensure appropriate succession plans are in place.”

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