July 19, 2017
Save the date for Connect Healthcare on November 8 – a national event at the Andaz Scottsdale Resort & Spa. More details coming soon.
If you’re searching for a career with job security, don’t set your sights on being a hospital CEO. Hospitals across the country are losing money, and boards are placing the blame squarely on CEOs.
“Many hospitals are losing money now and the future only looks rockier, with more uninsured and less Medicaid support,” says Dr. Janis Orlowski, chief health care officer for the Association of American Medical Colleges. “Boards want the right person to lead them into such turbulent times.”
Those “turbulent” times are marked by policy debates in Washington, declining reimbursements, and the shift from the fee-for-service model to value-based care. And we can’t forget the push to move care to outpatient clinics and the rise of healthcare consumerism.
All these factors have combined to decrease operating margins, and turnover is higher than it’s ever been. In the last six months, the CEOs of 30 medium- to large-sized hospitals have vacated their position, according to Orlowski. While some of those departures were voluntary and planned, a good chunk of them were not.
Although the churn is happening across the country, some markets are seeing a hospital CEO exodus. Houston, home to the world’s largest medical complex, is one such market. After St. Luke’s Health System posted multi-million dollar losses, the system’s owner, Catholic Health Initiatives, announced the resignation of CEO Michael Covert. His departure comes on the heels of the unexpected resignations of Dr. Ron DePinho, CEO of MD Anderson Cancer Center, and Dr. Benjamin Chu, CEO of Memorial Hermann Health System.
For questions, comments or concerns, please contact Jennifer Duell Popovec