Related Experiment Video
Updated: Mar 19, 2026
Setting Up a Stroke Team Algorithm and Conducting Simulation-based Training in the Emergency Department - A Practical Guide
Published on: January 15, 2017
Insider versus outsider executive succession: The relationship to hospital efficiency
Eric W Ford1, Kevin B Lowe, Geoffrey B Silvera
1Eric W. Ford, MPH, PhD, is Professor, Bloomberg School of Public Health, Johns Hopkins University, Baltimore, Maryland. E-mail: ewford@jhu.edu. Kevin B. Lowe, PhD, is Fletcher Building Education Trust Chair in Leadership, Graduate School of Management, The University of Auckland, New Zealand. Geoffrey B. Silvera, PhD, is Assistant Professor, Auburn University, Alabama. Dmytro Babik, MS, PhD, is Assistant Professor, College of Business Instruction, James Madison University, Harrisonburg, Virginia. Timothy R. Huerta, MPA, PhD, is Associate Professor, The Ohio State University, Columbus.
Background:
The relationship between Chief Executive Officer (CEO) succession and hospitals' competitive performance is an area of interest for health services researchers. Of particular interest is the impact on overall strategic direction and health system performance that results from selecting a CEO from inside the firm as opposed to seeking outside leadership. Empirical work-to-date has yielded mixed results. Much of this variability has been attributed to design flaws; however, in the absence of a clear message from the evidence, the preference for hiring "outsiders" continues to grow.
Purpose:
This paper investigates on the extent to which insider CEO succession versus outsider succession impacts hospitals' competitive advantage vis-à-vis a sample of organizations that compete in the same sector.
Methods:
A hospital matching protocol based on propensity scores is used to control for endogeneity and makes comparisons of productivity across organizations through the use of stochastic frontier estimation.
Findings:
Succession negatively impacts hospitals' productivity, and firms with outsider CEO succession events closed the gap toward the competitive advantage frontier faster than comparable firms with insider successions.
Practice Implications:
More research needs to be done on succession planning and its impact on CEO turnover.
More Related Videos
Related Concept Videos
00:59Hospitals-II
Nurses that work in...
01:30Ethical Dilemmas II
01:20Integrated Healthcare System
01:29Issues And Trends In Healthcare Delivery System
Cost Containment
Payment for healthcare services has historically promoted adoption of costly and often unnecessary or inefficient...
01:31Discharge Summary Forms
Here's a detailed look at the key components and guidelines for preparing a discharge summary:
01:30Health Information Technology and Healthcare Information System
Health Information Technology, commonly called HIT, integrates advanced information systems and technology in healthcare settings. Its primary functions include: