Hospital CEO Turnover Rate 2016


For Immediate Release

Hospital CEO Turnover Rate Remains Elevated

CHICAGO, March 11, 2016—Hospital CEO turnover in 2015 held steady at 18 percent, according to a recent report by the American College of Healthcare Executives. While less than the record high of 20 percent in 2013, this level of turnover is equal to that reported in 2014 and still among the highest rates reported in the past two decades.

“Our data show a continuation of the elevated CEO turnover rates we have seen over the past several years,” says Deborah J. Bowen, FACHE, CAE, ACHE’s president and CEO. “The continuing trend of consolidation among organizations, the emergence of new models of care, retirement of leaders from the Baby Boomer era as well as movement of CEOs within health systems may all be contributing factors. The high level of change taking place in hospital C-suites underscores the importance of organizations having well-developed succession plans to manage changes in senior leadership roles to ensure success in today’s environment.”

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*

YEAR ADJUSTED **
(percent)		 NUMBER OF HOSPITALS
2015 18 4,448
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

* Nonfederal short term, general medical and surgical 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 with 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 2012–2015 rates.

American College of Healthcare Executives—Feb. 17, 2016
Annual CEO Turnover by State—Rates adjusted for states with more than 23 turnovers
Nonfederal, Short-Term, General Medical/Surgical Hospitals—Calendar Year 2015

Rank State Adjusted CEO Turnover Percent*
(High-turnover states)
1 MISSOURI 30†
2 DIST. OF COLUMBIA 29
3 ALASKA 28
4 NEVADA 27
5 OREGON 26
6 COLORADO 25
8 ARIZONA 25
9 HAWAII 25
7 SOUTH CAROLINA 24
10 KANSAS 23†
11 TEXAS 23†
12 ALABAMA 22
13 RHODE ISLAND 22
14 WEST VIRGINIA 22
15 NEW JERSEY 22
16 TENNESSEE 22
17 ARKANSAS 21
(Medium-turnover states)
18 NORTH DAKOTA 21
19 OKLAHOMA 20
20 GEORGIA 20†
21 DELAWARE 20
22-23 CALIFORNIA 20†
22-23 WASHINGTON 20
24 IDAHO 19
25 VIRGINIA 19
26 CONNECTICUT 19
27 NORTH CAROLINA 18
28 LOUISIANA 18
29 NEW YORK 18†
30 NEBRASKA 18
31 MASSACHUSETTS 18
32 MISSISSIPPI 17
33-35 SOUTH DAKOTA 17
33-35 KENTUCKY 16
33-35 MINNESOTA 16
(Low-turnover states)
36 FLORIDA 16†
37 PENNSYLVANIA 16
38 OHIO 16
39 MARYLAND 16
40 INDIANA 15
41 MONTANA 15
42 VERMONT 14
43 WYOMING 14
44 UTAH 14
45 IOWA 14
46 NEW MEXICO 13
47 NEW HAMPSHIRE 13
48 MICHIGAN 12
49 ILLINOIS 12
50 MAINE 9
51 WISCONSIN 7
52 PUERTO RICO 2
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 40,000 healthcare executives who lead hospitals, healthcare systems and other healthcare organizations. ACHE's mission is to advance its members and healthcare management excellence. ACHE offers its prestigious FACHE®credential, signifying board certification in healthcare management. ACHE's established network of 79 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 vision of being the preeminent professional society for healthcare executives dedicated to improving health. 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 ache.org.

Contact:
Eva Chess, JD
Vice President
Communications and Marketing
American College of Healthcare Executives
One North Franklin, Suite 1700
Chicago, IL 60606
(312) 424-9420
echess@ache.org