When it comes to CEO turnover, healthcare continues to outpace other industries, saying goodbye to the most chief executives so far this year, according to the latest report from outplacement consultancy Challenger, Gray & Christmas.
Of the 949 CEO changes in 2013, healthcare leads with 195 departures. Thanks in part to changes under the Affordable Care Act, healthcare CEO departures hit a record high of 78 in the third quarter of 2013, with 26 changes in September alone.
In July, healthcare CEOs comprised the biggest chunk of the 128 CEO departures with 34 changes, 17 of which came from hospitals and hospital systems.
During the third quarter, the president and CEO of Orlando (Fla.) Health, Sherrie Sitarik, stepped down from her position, the Orlando Sentinel reported. At Bartlett Regional Hospital, CEO Christine Harff resigned after only one year leading the Alaskan hospital, according to the Juneau Empire. The third quarter also included the retirement of Tehachapi (Calif.) Valley Healthcare District CEO Alan Burgess, the Tehachapi News reported.
"It is not just hospitals and health systems that are being impacted; we are seeing a lot of CEO moves at health technology firms, medical device companies, and pharmaceutical companies," Challenger, Gray & Christmas CEO John Challenger said last week in a statement. "Many of these organizations are looking for CEOs better equipped to navigate through this period of tumult and uncertainty."
With a rising CEO turnover rate, hospitals need to develop adequate programs to identify and train new leaders. Moreover, these programs should build a strong talent pipeline with those already working at the organization, as an April survey found it costs hospitals less to develop and retain leadership in-house than to hire and train new management. Hospitals that don't groom internal leaders spend four times more than hospitals emphasizing leadership development, according to a survey conducted by Talent Management Consulting, FierceHealthcare previously reported.