The hospital CEO turnover rate in 2014 was 18 percent, which is among the highest annual rates in the last 15 years, according to a new American College of Healthcare Executives (ACHE) report that included 4,501 U.S. hospitals. However, it was a slight decrease from 20 percent last year.

“It’s on the upper end of what it has been historically,” Deborah Bowen, president and CEO of ACHE, told DOTmed News. The turnover rate for the decade before 2013 ranged from 14 percent to 18 percent — in 2012 it was 17 percent and in 2011 and 2010 it was 16 percent.

The rise in turnovers is attributed to the increase in consolidation among health care organizations, demand for executives who can lead in this new multifaceted, ever-changing environment and retirement of leaders from the baby boomer era.

Bowen said that in order for hospital CEOs to be successful in this new health care environment, they need to be both a strong manager and visionary. “All of these paradigm shifts are going to mean CEOs have to be more innovative and more entrepreneurial,” she said.

These types of CEOs are focusing on population health management, buying health plans, partnering in joint ventures, etc. Bowen explained that CEOs still have to be “masterful executors” as well as great collaborators.

Bowen believes that this report highlights the need for hospitals to deploy the right strategies, including a strong succession plan to successfully manage leadership changes. “You have to be able to identify successors, give them stretch assignments, [deploy] development plans, create transition plans and communicate how people are doing and evaluate that.”

ACHE conducted a separate report and found that a little over half of hospitals have committed to succession planning. According to Bowen, that number is on the rise but there is still work to be done.

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