Hospital CEO Turnover Slows at Close of Q1

Economic uncertainty is likely causing companies across all sectors to hold off on making seismic leadership changes.

CEO turnover in the U.S. is trending downward and hospitals are feeling the effects.

Only six CEO exits occurred at hospitals in March, a 60% decrease from 15 in February and a 25% decline from eight in March 2024, according to a report by Challenger, Gray & Christmas.

Factoring in the 10 CEO departures from January, hospitals experienced 31 exits in the first quarter of 2025, compared to 34 during the same period last year.

Overall, 646 CEOs left their organizations across all sectors through the first three months, setting a record for first-quarter turnover, the executive coaching firm found. The previous record was the 622 exits during the first three months of last year.

Despite record-breaking numbers for the quarter, CEO turnover headed in the opposite direction in March, which had 177 total exits, down 28% from 247 in February and a tick under the 180 from March 2024.

Unpredictability around potential policy changes in Washington that could impact organizations' financial health may be creating hesitation for companies in switching up leadership at the top of the C-suite.

"After a record-breaking start to the year, companies have slowed a bit on changing their top leader, though historically, it remains a high number," Andrew Challenger, senior vice president and labor expert for Challenger, Gray & Christmas, said in a statement.

"We certainly continue to face economic uncertainty as tariffs, federal job and funding cuts, new regulation, and falling consumer confidence hit companies nationally," he added.