CEO TURNOVER IN RURAL NORTHWEST HOSPITALS

This study examines rates of and reasons for turnover among administra tors from 148 rural hospitals in four northwestern states. Data were o btained from a survey of CEOs who left their positions between 1987 an d 1990 and from a survey of board members from those same hospitals. D uring the study period, 85 CEO turnovers occurred at 78 hospitals. Hig h-turnover hospitals were generally smaller than those facilities with fewer turnovers. The annual rate of CEO turnover was 15 percent in 19 88 and 16 percent in 1989. The reasons for turnover most often cited b y those in their positions for less than four years were due to: seeki ng a better position elsewhere, an unstable health care system, confli ct with hospital board members or with medical staff, and inadequate s alary. High levels of self-reported job satisfaction and job performan ce by turnover CEOs contrasted to the much lower performance evaluatio ns reported by hospital board members. Nearly three out of four board members indicated they would not rehire their departed CEOs. CEOs perc eived their professional weaknesses to center on deficiencies in leade rship and financial skills as well as problems with physician, hospita l board, and community relations.