Hospital CEO turnover falls in 2019
Fewer hospital CEOs are leaving their jobs, according to a report from Challenger, Gray & Christmas on CEO turnover. During the first four months of 2019, 26 hospital CEOs left their jobs, compared to 35 departures during the same time period in 2018.
Among healthcare/products companies, 55 CEOs left their jobs in the first four months of 2019, up from 45 in 2018.
Overall, the pace of CEOs departing their roles has slowed, according to Andrew Challenger, vice president of Challenger, Gray & Christmas. Across all sectors, 97 CEO changes took place in April 2019, 39.2% lower than the 135 CEO departures in the previous month. April’s total was also 11% lower than the same month in 2018.
“The churn we have been experiencing at the top since last August, with monthly totals well higher than average, seems to have cooled, at least for the moment,” he said. “Job cuts announced by U.S. employers also slowed in April, suggesting the record expansion we’ve seen this year may be in a holding pattern, as companies take a wait-and-see approach.”
The findings come at a time when healthcare employment soared in 2018, with the sector becoming the largest employer in the nation last year. Healthcare jobs have been found to be some of the hardest to fill due to high demand that is expected to continue rising. U.S. hospital employment rose to 5,223,00 in March, a 2.11% jump from the same month in 2018, according to recent figures from the Bureau of Labor Statistics.
According to the turnover report, the average tenure for an outgoing CEO across all industries was 8.8 years, in April. CEOs departed their roles for a number of reasons, with 202 stepping into other roles within their companies, while 150 retired and 45 found new positions at other companies. Just six CEOs reportedly left due to scandal, three left following misconduct allegations, and three left for alleged sexual misconduct, according to the report.
“The good news for CEOs looking for new opportunities is that there are plenty of jobs available for those with a high-level skill set. Companies are reporting a skills gap, especially in leadership,” Challenger said.
See the full report on CEO turnover here.
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."