Becker's Hospital Review

49 Leadership & Management With 275 CEO Departures, Healthcare Again Leads in CEO Turnover By Tamara Rosin T he healthcare industry tied with the computer industry for highest CEO turnover in No- vember 2014, but was the leader across all industries with highest instances of turnover for the year, according to a report published by Challenger, Gray & Christmas. The healthcare industry (including healthcare products) and computer industry both reported 17 planned CEO departures in November, but healthcare has seen 275 departures for the year as of mid-December, while the computer industry reported 119 at that time, according to the report. The other three industries with the highest CEO turnover in 2014 were government and nonprofit organizations (182 CEO departures), services (48) and energy (35). The study also found resignation was the most common reason for departure in November among all CEOs, followed by retirement and stepping down. California, Texas and New York reported the highest CEO turnover, with 160, 99 and 75, depar- tures, respectively. n F or the 11th year in a row, hospital CEOs ranked financial challenges as the No. 1 issue facing their organizations in 2014. Each year, the American College of Healthcare Executives surveys community hospital CEOs to identify the top issues confronting their organiza- tions. Findings reflect 338 CEOs' responses. 1. Financial challenges 2. Healthcare reform implementation 3. Governmental mandates 4. Patient safety and quality 5. Care for the uninsured/underinsured 6. Patient satisfaction 7. Physician-hospital relations 8. Population health management 9. Technology 10. Personnel shortages The rankings are identical to what CEOs found most challenging in 2013, although the level of concern for individual items fluctuated. For in- stance, CEOs expressed less concern about popu- lation health management, even though the issue held onto its No. 8 spot. On the other hand, CEOs expressed more concern about healthcare reform implementation. "Creating an accountable care organization" was the 11th survey item in previous years, but it was not included in the 2014 survey. CEOs also ranked specific aspects of the top three cat- egories they found most pressing. CEOs could choose as many as desired. Here are the top five for each. Within financial challenges 1. Medicaid reimbursement (69 percent) 2. Bad debt (67 percent) 3. Decreasing inpatient volume (63 percent) 4. Medicare reimbursement (57 percent) 5. Competition from other providers (of any type) — 55 percent Within healthcare reform implementation 1. Reduce operating costs — 78 percent 2. Shift to value-based purchasing — 66 percent 3. Alignment of provider and payer incentives — 65 percent 4. Align with physicians more closely — 54 percent 5. Develop information systems integrated with primary care physicians — 48 percent Within governmental mandates 1. CMS audits — 80 percent 2. ICD-10 implementation — 68 percent 3. CMS regulations — 64 percent 4. State regulations — 34 percent 5. Increased government scrutiny — 32 percent n 10 Most Concerning Issues for Hospital CEOs By Molly Gamble SAVE THE DATE! Becker's Hospital Review Annual Meeting May 7-9, 2015 Swissôtel Chicago, Illinois 153 Great Health System Executives Speaking 119 Sessions 212 Speakers To learn more visit www.BeckersHospitalReview.com To register, visit www.regonline.com/ hospitalreview6thannualmeeting

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