Hospital CEO departures surge, boards turn to interim leadership

Editor's Note

Hospital CEO turnover climbed 3% in the first half of 2025, with organizations shifting toward interim appointments as financial and regulatory pressures intensify leadership changes, according to an August 5 article in HealthLeaders.

Citing data from Challenger, Gray & Christmas, the outlet reports that hospitals recorded 68 CEO exits through the first six months of 2025, a 3% increase from the 66 announced in the same period last year. Although hospital CEO turnover was down year-over-year in the first quarter—31 departures compared to 34 in 2024—activity picked up significantly toward the end of the second.

Across all industries, 207 CEOs exited in June, a 23% rise from May but down 12% from the same period last year. According to the article, the 1,235 CEOs who left during the first half of the year—a 12% increase—was the highest year-to-date total since the executive coaching firm began tracking CEO turnover in 2002.

Meanwhile, organizations are increasingly relying on interim leaders. As detailed in the article, one-third (33%) of new CEOs in the first half were appointed on an interim basis, compared to just 9% over the same period in 2024 and 2023. Among the interim appointments, 53% were selected from within the organization, while 47% came from outside.

Interim leadership also can attract CEO candidates. Andy Challenger, labor and workplace expert at Challenger, Gray & Christmas, told HealthLeaders more executives are embracing the increasingly attractive option of short-term CEO roles, essentially participating in a CEO gig economy.