Year over year, hospital CEO exits remain high through the first half of 2023.
June was a slow month for hospital CEO turnover, according to a new report from Challenger, Gray, & Christmas, Inc.
Only two hospital CEO exits were tracked in June by the firm, a jump from the 18 tracked just the month before. It's also significantly less than the 15 exits tracked in June 2022.
But while hospital CEO turnover has taken a nosedive, hospitals have experienced a 49% increase in CEO turnover during the first six months of 2023, compared to the exits during the first six months of 2022.
In 2023, hospitals announced 82 CEO changes during the first six months of the year, while only 55 hospital CEO exits were recorded during the same time in 2022.
"Hospital systems are struggling in a number of areas post-pandemic. Talent shortages, retention, and wages for staff are an issue, while cost of care is rising," Andrew Challenger, SVP of Challenger, Gray & Christmas, Inc. said in a previous statement. "Many systems are struggling to operate, and new leadership is needed to attempt to turn things around."
Monthly hospital CEO exits in 2023:
June was also a slow month for CEO turnover in other sectors, with 118 CEOs leaving their posts, the second lowest total this year following 112 CEO exits tracked in January.
This is a stark contrast from the exits tracked in May. In fact, it's 47% less than the 224 exits tracked just the month before, which was the highest total of exits for a single month on record since the firm started tracking CEO turnover in 2002.
But while the numbers have fallen month over month, year over year, June 2023 tracked 11% more exits than June 2022, where 106 CEO exits were recorded.
So far this year, the firm has tracked 907 CEOs leaving their posts, which is the highest January to June total the firm has tracked since it began tracking CEO exits in 2002.
"The economy is showing great resilience at the moment. We've seen a considerable number of changes this year, as leadership grapples with uncertainty in the coming months," Challenger said in a statement. "Historically, on average, June is the slowest month for CEO turnover and layoff announcements. Mid-year is the fiscal year-end for many companies, and in many cases, major moves do not occur in this month."
Melanie Blackman is a contributing editor for strategy, marketing, and human resources at HealthLeaders, an HCPro brand.