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
