While exits are up compared to last year, they continue to trend downward during 2023.
The exits of hospital CEOs are trending downward so far this year, according to a new CEO turnover report from Challenger, Gray, & Christmas, Inc.
Eight hospital CEOs left their positions in April, according to the report, the smallest number of exits recorded so far this year. Last year, during the month of April, there were seven hospital CEO exits reported.
During the first quarter of 2023, the number of exits reported was:
Exits include retirement, switching to a different role within the organization, being let go, and leaving the organization to lead a different one.
While hospital CEO exits appear to be slowing down since the beginning of the year, there is a 72% increase in exits when comparing year-over-year exits. 62 CEOs reportedly made exits through the end of April 2023, compared to only 36 who made exits through April 2022.
"Companies are undergoing a significant amount of change as they respond to economic challenges, higher costs, and talent management issues," Andrew Challenger, leadership expert and SVP of Challenger, Gray & Christmas, Inc., said in a previous statement.
The firm noted that the amount of CEO changes across the sectors they track is up 6% from the 139 exits tracked in March to the 147 exits tracked in April. Last month is the highest total for exits during the month of April since the firm began tracking CEO exits in 2022, according to the report. This is the third consecutive month where that has been the case.
"Companies have a lot to consider as we head to the second half of the year, as recession and inflation concerns continue. Many sectors are letting go of workers, and new technologies, like AI, are forcing conversations about use cases. This environment is conducive to new leadership," Challenger said.
Indeed, the looming recession and rising hospital expenses will continue to play roles in current workforce and operational challenges for healthcare organizations, undoubtedly having an impact on hospital and health system leaders across the C-suite.
Melanie Blackman is a contributing editor for strategy, marketing, and human resources at HealthLeaders, an HCPro brand.