Reported CEO exits and role changes across all US industries in the US rose 17% month over month.
According to the latest Challenger, Gray & Christmas, Inc. CEO Turnover Report, the number of hospital CEOs who left their posts in September was over 50% less than those who did in September 2021.
Last September, 11 hospital CEOs made changes, while only five hospital CEOs made role changes during September of this year. That's also one less than the number of CEOs that made changes in August 2022 (6).
While hospitals and healthcare companies were among the leading sectors in CEO turnover in August (accompanied by technology firms and government and nonprofit entities), the numbers are starting to slow.
Hospital CEOs aren't immune to the burnout that the healthcare workforce is currently facing. In last month's report, Andrew Challenger, SVP of Challenger, Gray & Christmas, Inc. was quoted saying: "Hospitals continue to be hammered on the labor front. The staff shortages, access-to-care concerns, legal issues, and resource management issues continue to create challenges for hospital leadership, and leaders themselves are not immune from the burnout felt at all levels."
Year to date, 82 hospital CEOs either retired, quit, or left their role for a new opportunities. In 2021, 79 hospital CEOs made role changes between January and September.
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.
Reported CEO exits and role changes across all industries in the US rose 17% month over month, with 63 CEOs making exits in August and 74 making exits in September.
Additionally, the age of CEOs who made role changes is, on average, four years younger than those who left their posts last year. The average age of the exiting CEO is 56 years, down from 60 in 2021.
"The last year has seen a complete revamping of the labor market. Many workers are choosing not to re-enter for a multitude of reasons, chief among them being lifestyle changes and early retirements," Challenger said in a statement. "Those who can, are in many cases deciding they want to pursue their own interests instead of a traditional job. That’s certainly a possibility as we see younger CEOs leaving their posts."
Melanie Blackman is the strategy editor at HealthLeaders, an HCPro brand.