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For Immediate Release

Hospital CEO Turnover Rate Decreases Slightly

CHICAGO, March 14, 2011—Hospital CEO turnover decreased slightly in 2010, tracking at 16 percent nationwide, according to a recent report from the American College of Healthcare Executives (ACHE). The turnover rate recorded in 2009 was 18 percent. Prior to that, the turnover rate had fluctuated between 14 and 16 percent between 2001 and 2008.

“While the rate of CEO turnover has decreased somewhat, it is still too high,” says Thomas C. Dolan, PhD, FACHE, CAE, president and CEO of ACHE. “Now, more than ever, hospitals need to ensure they have the appropriate succession plans in place to minimize any potential negative impact of unexpected turnover. It is critical that hospital boards and CEOs 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
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 appointment 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 applied to 2009-2010 as well.

American College of Healthcare Executives, February 18, 2011
Annual CEO Turnover by State – Rates adjusted for states with 30+ hospitals

Non-Federal, Short Term, General Medical/Surgical Hospitals - Calendar Year 2010

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

About the American College of Healthcare Executives
The American College of Healthcare Executives is an international professional society of more than 35,000 healthcare executives who lead hospitals, healthcare systems and other healthcare organizations. ACHE is known for its prestigious FACHE® credential, Congress on Healthcare Leadership conference, network of more than 80 chapters, educational offerings, publications, career development and public policy programs, and research. Based in Chicago, ACHE works toward its goal of being the premier professional society for healthcare executives dedicated to improving healthcare delivery.

For additional information, visit www.ache.org.

Contact:

Kay A. Branz, CAE
Vice President
Communications and Marketing
American College of Healthcare Executives
One North Franklin, Suite 1700
Chicago, IL 60606
(312) 424-9420
kbranz@ache.org