Hospital CEO Turnover Rate Remains Steady
CHICAGO, June 14, 2018—For the fourth straight year hospital CEO turnover 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, the level of turnover registered in 2017 is equal to that reported in the previous three years and remains among the highest rates calculated in the last two decades.
“According to our data, the past five years have been the longest period of continuously elevated CEO turnover rates above 18 percent since we began studying turnover in the early 1980s,” says Deborah J. Bowen, FACHE, CAE, ACHE’s president/CEO. “Hospitals and health systems continue to evolve and reorganize to meet the demands of the new healthcare environment at the same time many CEOs are reaching retirement age, all of which may be contributing to CEO turnover. More than ever, C-suite succession planning and more intentional focus on the professional development of new leaders is vital to organizational success.”
ACHE’s CEO turnover rates are based on changes in an organization’s CEO, as reported to the American Hospital Association.
American College of Healthcare Executives
Hospital CEO Turnover*
YEAR | (percent) ** | NUMBER OF HOSPITALS |
2017 | 18 | 4,435 |
2016 | 18 | 4,401 |
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, general medical and surgical hospitals.
**Rates before 2016 are statistically adjusted to correct for errors in reporting. Based on a telephone survey in 2017 using a sample of 300 hospitals, we determined that adjustment of the rates for 2016 and subsequent years was not necessary.
American College of Healthcare Executives—Feb. 28, 2018
Annual CEO Turnover by State
Nonfederal, General Medical and Surgical Hospitals—Calendar Year 2017
Rank | State | CEO Turnover Percent |
(High-turnover states) | ||
1 | CONNECTICUT | 38 |
2 | WYOMING | 38 |
3 | IDAHO | 36 |
4 | PUERTO RICO | 35 |
5 | NEW MEXICO | 31 |
6 | WISCONSIN | 25 |
7 | WASHINGTON | 25 |
8 | OKLAHOMA | 25 |
9 | SOUTH CAROLINA | 24 |
10-11 | ALASKA | 22 |
10-11 | HAWAII | 22 |
12 | FLORIDA | 22 |
13 | MISSOURI | 21 |
14 | ALABAMA | 20 |
15 | MASSACHUSETTS | 20 |
16 | VIRGINIA | 20 |
17-18 | DELAWARE | 20 |
17-18 | RHODE ISLAND | 20 |
(Medium-turnover states) | ||
19 | GEORGIA | 20 |
20 | TEXAS | 19 |
21 | ILLINOIS | 19 |
22 | MICHIGAN | 19 |
23 | OHIO | 18 |
24 | COLORADO | 18 |
25 | PENNSYLVANIA | 17 |
26 | MINNESOTA | 17 |
27 | IOWA | 17 |
28 | ARIZONA | 17 |
29 | KENTUCKY | 17 |
30 | NEBRASKA | 16 |
31 | KANSAS | 16 |
32 | TENNESSEE | 16 |
33 | NORTH DAKOTA | 15 |
34 | LOUISIANA | 15 |
35 | INDIANA | 15 |
(Low-turnover states) | ||
36 | OREGON | 15 |
37 | MISSISSIPPI | 15 |
38 | DIST. OF COLUMBIA | 14 |
39 | NEW JERSEY | 14 |
40 | CALIFORNIA | 14 |
41 | NORTH CAROLINA | 14 |
42 | NEVADA | 14 |
43 | MONTANA | 13 |
44 | MAINE | 13 |
45 | NEW YORK | 12 |
46 | NEW HAMPSHIRE | 12 |
47 | MARYLAND | 11 |
48 | UTAH | 11 |
49 | WEST VIRGINIA | 11 |
50 | SOUTH DAKOTA | 9 |
51 | VERMONT | 8 |
52 | ARKANSAS | 7 |
US Total (50 states, DC, Puerto Rico) | 18 |
About the American College of Healthcare Executives
The American College of Healthcare Executives is an international professional society of 48,000 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 78 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 leaders 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.