In 2014, the rate of hospital CEO turnover decreased to 18 percent. Although this is lower than the record high 20 percent recorded for 2013, it still remains one of the highest rates recorded in the past 15 years.
The American College of Healthcare Executives has tracked hospital CEO turnover since 1981. The 18 percent turnover rate matches what was seen in 1999 and 2009.
In 2013, CEO turnover hit a high of 20 percent. In 2012, it was 17 percent, while it lingered at 16 percent in 2011 and 2010.
Rhode Island had the highest adjusted CEO turnover rate for 2014 at 44 percent, with Mississippi (27+ percent) and Washington (27 percent) following. Delaware had 0 percent turnover, while Connecticut and Vermont were next-lowest with 7 and 8 percent, respectively.
"As our data show, elevated turnover among hospital CEOs seems to be a feature of the current healthcare environment," says Deborah J. Bowen, FACHE, CAE, ACHE's president and CEO. "The continuing trend of consolidation among organizations, the increasing demands on chief executives to lead in a complex and rapidly changing environment, and retirement of leaders from the baby boomer era may all be contributing to this continuing higher level of change in the senior leadership of hospitals. The findings also serve as a reminder for healthcare organizations to continue to ensure they have appropriate strategies in place — including robust succession planning — to successfully manage senior leadership changes."