About ACHE

For Immediate Release

Hospital CEO Turnover Rate Increases Slightly

CHICAGO, March 4, 2013—Hospital CEO turnover increased slightly in 2012, tracking at 17 percent compared to 16 percent in 2011, according to a recent report from the American College of Healthcare Executives. The turnover rate in 2011 and 2010 was 16 percent, and the annual rate has fluctuated between 14 and 18 percent in the last decade.

“As the retirement of baby boomers continues, the CEO turnover rate—which is already too high—may continue to increase,” says Thomas C. Dolan, PhD, FACHE, CAE, president and CEO of ACHE. “Now more than ever, hospitals must ensure they have the appropriate succession plans in place to avert any potentially negative impact of leadership changes. Hospital boards and CEOs must work together to achieve this.”

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
2012 17 4555
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 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.

 

American College of Healthcare Executives–Feb. 15, 2013
Annual CEO Turnover by State—Rates adjusted for states with 24+ turnovers

Nonfederal, Short-Term, General Medical/Surgical Hospitals—Calendar Year 2012

Rank

State

Adjusted CEO
Turnover Pct*

  (High-turnover states)  
1 DIST. OF COLUMBIA 43
2 RHODE ISLAND 30
3 IDAHO 29
4 ARKANSAS 28
5 ARIZONA 26
6 TENNESSEE 25†
7 NEVADA 24
8 NORTH CAROLINA 24†
9 FLORIDA 24†
10 NORTH DAKOTA 23
11 COLORADO 23
12 OKLAHOMA 23
13 TEXAS 22†
14 MONTANA 22
15 LOUISIANA 22
16 PUERTO RICO 20
17 SOUTH CAROLINA 19
  (Medium-turnover states)  
18 MICHIGAN 19†
19 UTAH 19
20 ALABAMA 19
21-22 HAWAII 19
21-22 NEW MEXICO 19
23-24 MISSISSIPPI 18
23-24 VIRGINIA 18
25 OHIO 17†
26 MASSACHUSETTS 17
27 CALIFORNIA 17†
28-29 KANSAS 17
28-29 KENTUCKY 17
30 PENNSYLVANIA 16†
31 MINNESOTA 16
32 NEBRASKA 15
33 NEW JERSEY 15
34-35 ALASKA 14
34-35 WASHINGTON 14
  (Low-turnover states)  
36 GEORGIA 14
37 ILLINOIS 14†
38 MISSOURI 13
39 NEW YORK 13
40 INDIANA 13
41 WEST VIRGINIA 12
42 IOWA 12
43 OREGON 11
44 WISCONSIN 11
45 WYOMING 11
46 MAINE 9
47 NEW HAMPSHIRE 8
48 VERMONT 8
49 SOUTH DAKOTA 6
50 MARYLAND 5
51 CONNECTICUT 4
52 DELAWARE 0
  US TOTAL (50 states, DC, Puerto Rico) 17

* 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 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