CEO turnover appears to be stabilizing in healthcare
The high rate of turnover for healthcare CEOs has seemingly slowed, according to the latest report on CEO exits from global outplacement and business and executive coaching firm Challenger, Gray & Christmas.
So far in 2022, 832 CEOs have left their roles––and healthcare CEOs have been among the most active role departures. In May, hospital CEOs were leaving their roles at a record clip, with 36 hospital chiefs leaving their roles to date, compared to 20 who left their roles in the same time period in 2021.
Fortunately for companies, CEOs’ participation in the Great Resignation has slowed, with CEO departures declining 45% in July from the previous month. Just 58 CEOs left their roles last month, compared to 106 recorded in June. In fact, July was the lowest monthly total since April 2020, when 46 CEOs exited. That decline could underscore rising uncertainty in the economy amid historical inflation rates and rising interest rates.
“The economy is facing uncertainty right now, but it’s much more positive than in early 2020,” Andrew Challenger, senior vice president of Challenger, Gray & Christmas, said in a statement. “Inflation fell in July, gas prices are falling steadily, the job market remains tight, and supply chain issues have mostly cleared up. Consumers lack confidence at the moment and interest rates are rising to battle inflation, which might slow business borrowing and some growth plans.”
Overall, CEO exits are up 8% from the first seven months of 2021, during which time 770 departures were announced. During July, nine hospital CEOs said goodbye to their roles, totaling 71 for the year to date. That’s up 20% from the 59 announced during the same seven-month period last year.
“Healthcare, and hospitals specifically, are under a tremendous strain emerging from the pandemic,” said Challenger. “Staffing shortages have created concerns about care, and varying legislation on abortion will impact hospital systems differently depending on the states in which they have hospitals, an incredible challenge.”
Among the reasons CEOs are leaving their jobs are retirement, stepping into other high-level roles in the same organization or leaving for new opportunities.
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."