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Analysis

Hospital CEO Turnover Rate Slowed a Bit in 2019

By John Commins  
   September 15, 2020

Turnovers have hovered at around 18% for the past eight years, as many hospital leaders reach retirement age.

Hospital CEO positions turned over at a rate of 17% in 2019, a small drop from turnover rates over the last five years that have held steady at 18%, the American College of Healthcare Executives reports.

Still, the ACHE survey finds that hospital leaders are continuing their nomadic ways, with the last eight years representing the longest period during which hospital CEO turnover rates were 17% or higher since the study began in the early 1980s.

"Despite the slight drop in 2019, turnover rates in recent years remain at higher levels than in the past," ACHE President and CEO Deborah J. Bowen, FACHE, CAE, said.

Bowen said the turnover comes as hospitals continue to adapt to a rapidly changing healthcare environment and the movement of CEOs to different positions within healthcare systems.

"In addition, more CEOs are reaching retirement age," Bowen says. "Our turnover data underline the importance of organizations maintaining a focus on succession planning and developing our new healthcare leaders."

ACHE's CEO turnover rates are based on changes reported to the American Hospital Association and confirmed from ACHE data.

Delaware had the highest CEO turnover, at 40% in 2019, while South Dakota had the lowest turnover, at 2%, among the 50 states, Puerto Rico, and Washington, D.C., ACHE's report shows.

“Our turnover data underline the importance of organizations maintaining a focus on succession planning and developing our new healthcare leaders.”

John Commins is a content specialist and online news editor for HealthLeaders, a Simplify Compliance brand.


KEY TAKEAWAYS

The turnover comes as hospitals continue to adapt to a rapidly changing healthcare environment and the movement of CEOs to different positions within healthcare systems.

Delaware had the highest CEO turnover, at 40% in 2019, while South Dakota had the lowest turnover, at 2%, among the 50 states, Puerto Rico, and Washington, D.C.

ACHE's CEO turnover rates are based on changes reported to the American Hospital Association and confirmed from ACHE data.


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