Hospital CEO Exits up 80% YOY

A new analysis found that 36 hospital CEOs have made departures through the end of April.

CEO exits are continuing to climb across all industries, including healthcare, according to Challenger, Gray & Christmas, Inc.'s newest report released on Wednesday.

The analysis found that 36 hospital CEOs have made departures this year, with 7 exits happening in April. This is an 80% increase from the 20 hospital CEO exits announced through April 2021.

Additionally, healthcare firms experienced 46 CEOs make changes through April 2022, a drop from the 63 CEOs who exited through April 2021.

"Many companies are making changes at the top to address rising costs for both business and consumers," Andrew Challenger, Senior Vice President of Challenger, Gray & Christmas, Inc., said in the report.

"Inflation, staffing shortages, and possible recession concerns are giving more cause for companies to reevaluate leadership. This, after years of companies trying to figure out the right formula to attract and retain talent and create a culture of inclusion, issues that often start at the top," he added.

The report found that across industries, CEO exits are at the highest year to date on record. 518 CEOs have departed from their positions so far this year, which is the highest the firm has seen since it began tracking monthly CEO changes in 2022.

This is an 18% increase from the 440 CEO exits that were tracked between January and the end of April in 2021. The previous high of CEO exits across industries were tracked between January and April 2019, with a total of 513 departures happening within that four-month timeframe.

"Retirement and new opportunities are occurring at every level of organizations right now, and the CEO role is not immune," Challenger said.

Another recent report from Challenger, Gray & Christmas, Inc. found that 29 hospital CEOs made their exits through the end of March 2022, up 48% from Q1 2021, which experienced 15 hospital CEO departures.