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For Immediate Release

Hospital CEO Turnover Rate Holds Steady

CHICAGO, March 6, 2012—Hospital CEO turnover remained steady in 2011, tracking at 16 percent nationwide, according to a recent report from the American College of Healthcare Executives (ACHE). The turnover rate recorded in 2010 was also 16 percent. Prior to that, the turnover rate had fluctuated between 14 and 18 percent between 2001 and 2009.

“The rate of CEO turnover is still too high, and it is likely to increase as baby boomers retire over the next 20 years,” says Thomas C. Dolan, PhD, FACHE, CAE, president and CEO of ACHE. “It is critical that hospitals ensure they have the appropriate succession plans in place to minimize any potential negative impact of changes in leadership. Hospital boards and CEOs need to work together to this end.”

ACHE’s CEO turnover reports are based on changes in an organization’s chief executive officer as reported to the American Hospital Association.

American College of Healthcare Executives
Hospital CEO Turnover*

YEAR ADJUSTED **
(percent)
NUMBER OF HOSPITALS
2011 16 4542
2010 16 4567
2009 18 4582
2008 14 4520
2007 15 4496
2006 15 4546
2005 14 4512
2004 16 4566
2003 14 4569
2002 14 4602
2001 15 4624
2000 17 4689
1999 18 4744
1998 17 4780
1997 16 4842
1996 16 4928
1995 17 4940
1994 14 5045
1993 14 5030
1992 15 5198
1991 17 5294
1990 13 5398
1989 16 5454
1988 18 5526
1987 18 5583
1986 17 5626
1985 16 5651
1984 15 5665
1983 13 5672
1982 14 5678
1981 14 5687

* Short-term, general medical and surgical and nonfederal hospitals.
** Based on a universal telephone study in 1990, we reduced the total turnover for the years 1981-1997 by 14.2 percent due to incorrect reporting of retained CEOs and by 9.9 percent due to the replacement of interim or acting CEOs. The total reduction is 24.1 percent. In 1998, a sample survey of 146 hospitals showed that the appropriate deflator should be 18.6 percent, which was applied to the 1998-2002 rates. In 2004, this deflator was adjusted to 18.8 percent on the basis of a survey of a sample of 150 hospitals; this was applied to the 2003-2007 rates. For the 2008 calendar year, on the basis of a survey of 300 hospitals, a new deflator of 13.04 percent was computed, which was used for 2009 and 2010 as well.

Beginning in 2011, our calculations eliminate known interim CEOs from the calculations rather than correcting for them using the deflator. A deflator of 2.10 percent, correcting for overlooked interim CEOs and misidentified turnovers, was computed on the basis of a 2012 survey of 300 hospitals. If the method which produced the pre-2011 figures had been used, the deflator would have been 10.42 percent, yielding the same estimated rate.

 

American College of Healthcare Executives, Feb. 17, 2012
Annual CEO Turnover by State—Rates adjusted for states with 37+ turnovers

Nonfederal, Short-Term, General Medical/Surgical Hospitals—Calendar Year 2011

Rank

State

Adjusted CEO
Turnover Pct*

  (High-turnover states)  
1 HAWAII 35
2 PUERTO RICO 30
3 WYOMING 29
4 ARIZONA 25
5 ARKANSAS 25
6 ALASKA 24
7 SOUTH CAROLINA 23
8 IDAHO 22
9 KANSAS 21
10 MASSACHUSETTS 20
11 ALABAMA 20
12 SOUTH DAKOTA 20
13 KENTUCKY 19
14 GEORGIA 19
15 MARYLAND 19
16 CALIFORNIA 18
17

FLORIDA

18

  (Medium-turnover states)  
18 MISSISSIPPI 18
19 UTAH 18
20 MISSOURI 17
21-23 NEW MEXICO 17
21-23 NEVADA 17
21-23 OHIO 17
24 ILLINOIS 17
25-26 OKLAHOMA 16
25-26 TENNESSEE 16
27 NEW YORK 16
28 OREGON 16
29 WISCONSIN 16
30-31 MONTANA 16
30-31 WEST VIRGINIA 16
32 NORTH CAROLINA 16
33
 
PENNSYLVANIA
 
15
 
  (Low-turnover states)  
34-37 CONNECTICUT 14
34-37 DIST. OF COLUMBIA 14
34-37 MAINE 14
34-37 VERMONT 14
38 TEXAS 14
39 NEW JERSEY 13
40 IOWA 13
41 MINNESOTA 12
42 COLORADO 12
43 LOUISIANA 12
44 MICHIGAN 11
45 VIRGINIA 11
46 RHODE ISLAND 10
47 INDIANA 10
48 WASHINGTON 10
49 NEBRASKA 9
50 NEW HAMPSHIRE 8
51 NORTH DAKOTA 8
52 DELAWARE 0
  US TOTAL (50 states, DC, Puerto Rico) 16

* This table adjusts the turnover rate downward in states with more than 36 turnovers to account for unrecorded interim and acting CEOs who are intentionally assigned to their posts for a short period.
† More than 36 turnovers - adjusted rate

About the American College of Healthcare Executives

The American College of Healthcare Executives is an international professional society of more than 40,000 healthcare executives who lead hospitals, healthcare systems and other healthcare organizations. ACHE offers its prestigious FACHE® credential, signifying board certification in healthcare management. ACHE's established network of more than 80 chapters provides access to networking, education and career development at the local level. In addition, ACHE is known for its magazine, Healthcare Executive, and its career development and public policy programs. Through such efforts, ACHE works toward its goal of being the premier professional society for healthcare executives dedicated to improving healthcare delivery. The Foundation of the American College of Healthcare Executives was established to further advance healthcare management excellence through education and research. The Foundation of ACHE is known for its educational programs—including the annual Congress on Healthcare Leadership, which draws more than 4,500 participants—and groundbreaking research. Its publishing division, Health Administration Press, is one of the largest publishers of books and journals on health services management including textbooks for college and university courses.

Contact:
Lisa M. Freund, FACHE
Vice President
Communications and Marketing
American College of Healthcare Executives
One North Franklin, Suite 1700
Chicago, IL 60606
(312) 424-9420
lfreund@ache.org