CEO Turnover Highest at Nevada Hospitals
Dolan says about one-third of CEO departures are considered involuntary, in which the board and the CEO were just not a good fit, or the CEO died, or was terminated for job performance, or ethics violations. But about two-thirds are voluntary, such as the CEO just wanting to retire, a growing trend as baby boomers age, and which some CEOs may have postponed a year or two due to the recession.
According to an ACHE report last year, the average hospital CEO tenure is 5.6 years with a median of 3.6. Only 3.4% had a continuous tenure of 20 or more years. And 57% of first time-CEOS were promoted from within their organizations.
In addition to loss of continuity, the report said, employee morale likely suffers, as does board and community relations and hospital culture.
For more industry insight, see the HealthLeaders Media Industry Survey.
Cheryl Clark is senior quality editor and California correspondent for HealthLeaders Media. She is a member of the Association of Health Care Journalists.
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