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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