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Hospital CEO turnover rises, retirement up

Hospital CEO turnover rises, retirement up
March 12, 2010

Hospital CEO turnover increased 18% last year, the largest increase since 1999, according to a survey by the American College of Healthcare Executives. States with the highest percentage turnover rates are Delaware at 40%, Alaska at 33%, and Arkansas, Wyoming and New Mexico all at 32%. While factors such as poor financial performance or quality-of-care concerns can contribute to CEO departures, the “primary driver for this increase is the retirement of health care leaders in the baby boomer generation,” says ACHE President and CEO Thomas Dolan. “These findings underscore the need for health care organizations to have good succession planning in place to ensure organizational success when changes in senior leadership occur.” The ACHE report is based on changes in hospitals’ executive-level leadership that are reported to the AHA.