While CEO turnover rates in most other industries fell in 2009, the turnover rate for hospital CEOs increased, rising to 18 percent nationwide.
Up from 14 percent in 2008, this upsurge marks the highest turnover rate since 1999 and ties the all-time record high since the American College of Healthcare Executives began compiling turnover statistics in 1981.
Why are hospital CEOs leaving their positions in record numbers? Some experts think that many top executives were feeling the pressures of the long recession. Still others think that the recession delayed many retirements due to depleted nest eggs and decreased real estate values, causing many CEOs to stay in their positions until the economy showed signs of improvement in 2009.
Thomas C. Dolan, the president and CEO of the ACHE, says “These findings underscore the need for healthcare organizations to have good succession planning in place to ensure organizational success when changes in senior leadership occur.”
With the recession still causing long-term uncertainty, now is the time to focus on your mid- to senior-level leadership and make sure you have the employees you need to keep your organization running successfully and smoothly. If you have any questions or would like to discuss how other hospitals are dealing with turnover and succession planning please contact Morgan Hunter HealthSearch today.