CEO turnover at U.S. hospitals reached record levels in 2009, as the pressures of a long recession weighed on many top executives who were already considering retirement, according to a new report by the Chicago-based American College of Healthcare Executives.
In 2009, 18% of nonfederal acute-care hospitals saw turnover in their top job, up from 14% the year before, the annual study found. The total for 2009 tied the all-time record high since the ACHE began compiling the statistics in 1981.
Although myriad reasons have been offered by observers for why 2009 saw such a spike in turnover, experts say many of the trends appear to have the potential to last several years, causing industry groups including the ACHE to once again stress the need for succession planning in executive ranks.
Typically, financial pressures such as those seen in 2008 and 2009 would cause more executives to face involuntary departures. However demographic data suggest that the recession may have temporarily delayed many retirements by hurting nest eggs and housing prices, causing a buildup of CEO turnover that broke loose in the second half of 2009 as the economy thawed and the prospect of disruptive healthcare reform increased, observers said.
(For more on CEO turnover, please see this week's Modern Healthcare cover story Turbulence in the executive ranks. ) What do you think? Post a comment on this article and share your opinion with other readers. Submit your comments to Modern Healthcare Online at
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