Hospitals across the nation have seen operating margins shrink as they face dwindling reimbursement, regulatory uncertainty and new alternative payment models. Many hospital CEOs are taking the fall for their organization’s financial challenges, according to the Houston Chronicle.
Thirty medium- to large-sized hospitals across the country have lost their CEOs in the last six months, Janis Orlowski, MD, chief healthcare officer for the Association of American Medical Colleges, told the Houston Chronicle. Some CEOs voluntarily departed to take on a new position or retire, but many were ousted.
“That’s an increase in turnover, probably a reflection of the current volatility of the healthcare market,” Dr. Orlowski told the Houston Chronicle. “Many hospitals are losing money now and the future only looks rockier, with more uninsured and less Medicaid support. Boards want the right person to lead them into such turbulent times.”
To succeed in today’s healthcare market, hospital CEOs need to not only ensure the organization is financially stable but also stay ahead of change and remain engaged in their work, according to the report.