Hospital CEO Turnover Rate 2015


For Immediate Release

Hospital CEO Turnover Rate Remains Elevated

CHICAGO, March 5, 2015—Hospital CEO turnover in 2014 decreased to 18 percent, according to a recent report by the American College of Healthcare Executives. While lower than the record high of 20 percent reported for 2013, it remains among the highest rates reported in the last 15 years. The turnover rate in 2012 was 17 percent, and in 2011 and 2010 it was 16 percent. The annual rate has fluctuated between 14 and 18 percent in the decade prior to 2013.

“As our data show, elevated turnover among hospital CEOs seems to be a feature of the current healthcare environment,” says Deborah J. Bowen, FACHE, CAE, ACHE's president and CEO. “The continuing trend of consolidation among organizations, the increasing demands on chief executives to lead in a complex and rapidly changing environment, and retirement of leaders from the baby boomer era may all be contributing to this continuing higher level of change in the senior leadership of hospitals. The findings also serve as a reminder for healthcare organizations to continue to ensure they have appropriate strategies in place—including robust succession planning—to successfully manage senior leadership changes.”

ACHE’s CEO turnover rates 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*

American College of Healthcare Executives
Hospital CEO Turnover*
YEAR ADJUSTED **
(percent)		 NUMBER OF HOSPITALS
2014 18 4,501
2013 20 4,546
2012 17 4,555
2011 16 4,542
2010 16 4,567
2009 18 4,582
2008 14 4,520
2007 15 4,496
2006 15 4,546
2005 14 4,512
2004 16 4,566
2003 14 4,569
2002 14 4,602
2001 15 4,624
2000 17 4,689
1999 18 4,744
1998 17 4,780
1997 16 4,842
1996 16 4,928
1995 17 4,940
1994 14 5,045
1993 14 5,030
1992 15 5,198
1991 17 5,294
1990 13 5,398
1989 16 5,454
1988 18 5,526
1987 18 5,583
1986 17 5,626
1985 16 5,651
1984 15 5,665
1983 13 5,672
1982 14 5,678
1981 14 5,687
* 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 the 2011 figures, our calculations exclude known interim CEOs, 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 and applied to the 2012, 2013 and 2014 data.

** 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 the 2011 figures, our calculations exclude known interim CEOs, 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 and applied to the 2012, 2013 and 2014 data.

American College of Healthcare Executives—Feb. 17, 2015
Annual CEO Turnover by State—Rates adjusted for states with more than 23 turnovers

Nonfederal, Short-Term, General Medical/Surgical Hospitals—Calendar Year 2014


 


Rank

 State

 Adjusted CEO Turnover Pct*
  (High-turnover states)  
1 RHODE ISLAND 44
2 MISSISSIPPI 27†
3 WASHINGTON 27
4 NEW MEXICO 25
5 NORTH CAROLINA 24†
6 NEVADA 24
7 CALIFORNIA 24†
8 GEORGIA 24†
9 VIRGINIA 23
10 NEW HAMPSHIRE 23
11 OHIO 23†
12 MASSACHUSETTS 22
13 COLORADO 21
14 LOUISIANA 20
15 WYOMING 20
16 NEW JERSEY 20
17 ARIZONA 20
  (Medium-turnover states)  
18 PENNSYLVANIA 19†
19 WEST VIRGINIA 19
20 MICHIGAN 19†
21 NORTH DAKOTA 19
22-23 ALASKA 19
22-23 HAWAII 19
24 MISSOURI 19
25 WISCONSIN 19
26 ILLINOIS 19†
27 NEW YORK 18†
28 MAINE 18
29 OKLAHOMA 18
30 INDIANA 17
31 KANSAS 17
32 TENNESSEE 17
33-35 DIST. OF COLUMBIA 17
33-35 MONTANA 17
33-35 OREGON 17
  (Low-turnover states)  
36 IDAHO 16
37 FLORIDA 16†
38 ALABAMA 16
39 TEXAS 16†
40 NEBRASKA 15
41 KENTUCKY 15
42 PUERTO RICO 14
43 IOWA 13
44 UTAH 12
45 SOUTH CAROLINA 12
46 MINNESOTA 11
47 MARYLAND 11
48 SOUTH DAKOTA 11
49 ARKANSAS 11
50 VERMONT 8
51 CONNECTICUT
 7
52 DELAWARE 0
  US TOTAL (50 states, DC, Puerto Rico) 18
* This table adjusts the turnover rate downward in states with more than 23 turnovers to account for unrecorded interim and acting CEOs who are intentionally assigned to their posts for a short period.
† More than 23 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 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 4,000 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. For more information, visit www.ache.org

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