Record CEO Turnover Rates Brings New Challenges to US Hospitals

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By: Hugh Morgan, VP Quality Management, Somnia Anesthesia

Hospital CEO turnover rates have reached record highs, and there are no signs of slowing down in the near future. This is just one of the many challenges that has emerged with the ever-changing healthcare landscape, and is becoming a real concern amongst healthcare leaders nationwide. According to the Advisory Board Company website, “The hospital CEO turnover rate hit 20% in 2013—the highest rate since the American College of Healthcare Executives first began collecting data on hospital CEO turnover in 1981.”

Based on this trend, it is critical that hospital leaders begin to take action. This era of ongoing health reform has spawned growing complexities and specializations as it relates to managing and leading a comprehensive acute care hospital.  To successfully confront these challenges, leaders must now seek out the right partners who have the proven expertise in managing these highly complex and specialized areas within their organizations.  One thing that hasn’t changed is that effective management expertise can achieve the results and return-on-investment (ROI) that directly contribute to long term sustainability.

Though alarming, this turnover-rate should not lead to panic but rather encourage hospitals and CEOs to thoroughly evaluate these specialized areas that directly impact their bottom line. The right partner for a hospital or CEO will be an organization that has demonstrated success in managing a complex service during periods of transition and uncertainty.  Somnia Anesthesia has experienced a 38% hospital CEO turnover rate in just the past 5 years at their partner hospitals across the country. We understand and have experienced these challenging transitions first-hand. We have always successfully navigated our anesthesia operations through hospital leadership transitions by providing stable and effective management. This ensured smooth, uninterrupted services while achieving the highest performance levels.

While working directly with the hospital leadership and board members during a CEO transition, Somnia’s approach is one of anesthesia transparency and accountability. This provides stable clinical leadership, especially in the OR. The bottom line is that the healthcare industry remains in period of uncertainty and flux as hospitals and senior leaders weigh their options to remain independent, merge, or perhaps be acquired by another organization.  During these periods of uncertainty, hospitals and leaders should come to expect that their anesthesia services are stable, effective, and provide consistent results that contribute to a high-performing OR and other care areas throughout the hospital.  If this is not the case, then leaders should consider a variety of options, alternatives and solutions that specifically address their critical anesthesia services.

Is your hospital going through a leadership change? As anesthesia and OR experts, Somnia can help. Contact me, Hugh Morgan, at 877.795.5788 or [email protected].

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