Is chief executive officer turnover good for the hospital?

Abstract

This study examined the general characteristics of chief executive officers (CEOs) and their hospitals and the perceived impact of CEO turnover on various organizational activities. A mail-based survey included 156 hospital CEOs in 6 states in the West South Central, West North Central, and Mountain regions. Neither hospital and CEO characteristics nor the impact on various organizational activities and performance indicators was significantly different among the 6 states compared. Overall, CEOs reported relatively short tenures, frequent promotion from within the organization to CEO level, and common involuntary departure of their predecessors. Respondents overwhelmingly reported a positive impact of leadership change on financial performance, employee morale, and organizational culture.