Dr. Airica Steed said MetroHealth 'unlawfully terminated' her contract

MetroHealth's board voted to terminate the contract of its president and CEO Airica Steed, EdD, RN, on Aug. 9, due to performance issues. Dr. Steed said she was "unlawfully terminated" while on approved medical leave and offered a different explanation for the board's actions in a press release from her legal team.

 

Dr. Steed took the helm at MetroHealth in late 2022 after the board fired Akram Boutros, MD, for authorizing $1.9 million in supplemental bonuses to himself. Dr. Steed became CEO at a financially challenging time for the health system. MetroHealth reported a $5.1 million operating loss for the third quarter of 2022 as labor and supply expenses ballooned. On Aug. 5, the health system said its financial performance was more sluggish than expected, despite positive trends, and it would enact cost-cutting measures. MetroHealth paused most job searches for administrative positions and reduced travel expenses.

MetroHealth reported a slight revenue increase to $1.8 billion and $19.7 million operating loss in 2023, with labor and supply spending up year over year. The board blamed a fundamental disagreement between its leaders and Dr. Steed about priorities and performance standards as the reason for ending her contract.

"We believe Dr. Steed's performance is not meeting the needs of MetroHealth. As a result, we have lost confidence in her ability to lead the organization going forward and believe it would not be in the best interest of the system for her to continue in her position," said E. Harry Walker, MD, chair of MetroHealth's board of trustees, in the system's statement. "Therefore, we are exercising our right to terminate her at-will contract."

Dr. Steed's team disagreed with this characterization. The board told her she "met or exceeded expectations" for "financial management" during her March 1 performance review, and described her performance as "commendable."

Her team said the board never communicated performance concerns or other issues prior to her dismissal, which she said she learned about through the media instead of from the health system. The official termination letter sent to Dr. Steed said she was relieved of her duties "without cause."

"The obvious difference between the official letter sent to Dr. Steed and the public statement issued to the media demonstrates overt animus and an intent to irreparably harm Dr. Steed’s superb reputation and standing in the medical community," her team said.

Dr. Steed's team revealed she raised concerns with workplace discrimination and other legal and ethical issues prior to her medical leave; that's what she thinks led to her dismissal.

"Dr. Steed is determined to protect her interests and the interests of other MetroHealth employees who have voiced serious concerns about discrimination and the wrongful treatment of Dr. Steed and others," said her team.

MetroHealth's statement said its board was negotiating final terms of a separation agreement, but Dr. Steed's team said that wasn't true.

"Dr. Steed was blindsided by MetroHealth's actions…and no such negotiations are taking place," her team said. She is exploring possible legal action against the health system, among other options for her next steps.

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