Are Hospital CEO Exits Slowing Down or Speeding Up?

CEO exits have experienced a 20% increase in exits reported through the end of July 2022 compared to July 2021, but there also was a decrease in executive movement from June to July 2022.

The most recent CEO Turnover Report from Challenger, Gray & Christmas, Inc. found that hospitals and the healthcare sector were among the top industries experiencing CEO turnover in July 2022.

"Healthcare, and hospitals specifically, are under a tremendous strain emerging from the pandemic. Staffing shortages have created concerns about care, and varying legislation on abortion will impact hospital systems differently depending on the states in which they have hospitals, an incredible challenge," Andrew Challenger, SVP of Challenger, Gray & Christmas, Inc. said in a statement.

Last month, hospitals experienced nine CEO exits, which is less than the 15 CEO exits that happened in June. The decrease is promising for hospitals, which are currently under a lot of pressure due to staffing issues, inflation, and post-pandemic woes.

But, through the end of July 2022, 71 CEOs have made exits from their hospital posts, a 20% increase from the 59 CEO exits announced through the end of July 2021.

As we move closer to the end of the year and Challenger, Gray & Christmas continues to track hospital CEO turnover rates, we'll be able to better tell if total hospital CEO exits for 2022 will beat the 101 exits in 2020 and the 112 exits in 2021, or if turnover will start to slow.

Reasons why CEOs left their posts in the healthcare sector include: executives stepping down to serve as hospital chair, to serve in an advisory role to the new CEO or to the organization, to leave for new opportunities, or to retire.

Reported CEO exits across all industries have dropped to its lowest monthly total since April 2020, with only 58 CEOs leaving their positions in July 2022. This is a 45% decrease from the 106 CEO exits recorded just the month before.

Through the end of July, 832 CEOs have made exits across all industries, which is up 8% from the 770 CEO exits reported through the end of July 2021.

"The economy is facing uncertainty right now, but it’s much more positive than in early 2020," Challenger said. "Inflation fell in July, gas prices are falling steadily, the job market remains tight, and supply chain issues have mostly cleared up. Consumers lack confidence at the moment and interest rates are rising to bale inflation, which might slow business borrowing and some growth plans."