MetroHealth Fires Second CEO in 2 Years; Leader Calls Termination Unlawful

The health system's board voted to oust Airica Steed for performance issues while she was on medical leave.

MetroHealth System appears in to be in line for another legal battle after kicking a second CEO out the door in less than two years.

The Cleveland-based hospital operator cited performance deficiencies in their firing of Airica Steed, but the CEO claims she was “unlawfully terminated” while on approved FMLA leave and suggested the decision was retaliation for her raising concerns over discrimination and ethical issues at the company.

Steed took over at the system in 2022, becoming the first woman, Black person, and nurse to lead the nonprofit. Her appointment came after MetroHealth fired previous CEO and president Akram Boutros for allegedly paying himself $1.9 million in authorized bonuses.

Boutros denied the allegations and filed a lawsuit against the system but withdrew the suit due to undergoing treatment for a serious illness. His attorney stated he would refile the case as soon as his health improved.

Now, MetroHealth is clearing the deck again by letting go of Steed.

“It has become clear that the Board and Dr. Steed fundamentally disagree about the priorities and performance standards needed from our CEO for MetroHealth to fulfill its mission,” E. Harry Walker, MD, chair of the board of trustees, said in the news release. “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. Therefore, we are exercising our right to terminate her at-will contract.

“We thank Dr. Steed for her service and wish her well in her future endeavors. We had high expectations when she arrived in 2022 and are sorry those expectations have not been met.”

Steed’s attorney, F. Allen Boseman, Jr., issued a statement that the CEO was shocked by the termination.

“Dr. Steed, who is the first female and African American CEO of MetroHealth, is extremely disappointed in the actions of MetroHealth’s Board of Trustees and is stunned that the Board has taken action that directly conflicts with prior representations made publicly as well as to Dr. Steed privately,” Boseman said.

MetroHealth announced on July 26 that Steed was going on medical leave and named Christine Alexander-Rager as acting president and CEO. “We look forward to [Steed’s] return,” the system said in the news release.

Despite MetroHealth’s board citing performance issues in their decision to fire Steed, Boseman said the CEO was given a positive 2023 performance review. Steed earned a $381,156 bonus due to meeting goals, in addition to her base salary of $900,000.

Signal Cleveland, meanwhile, reported that tension between MetroHealth and Steed was bubbling for months, stemming from her frequent travel away from the system and the expenses those trips accumulated.

Rather than performance or her expenses, Boseman suggested that the system’s decision was in response to Steed engaging in protected activity.

For now, MetroHealth will be led by Alexander-Rager, who has been with the system for almost 30 years, most recently serving as interim executive vice president, chief physician executive and clinical officer. She previously served as MetroHealth’s chair of family medicine for 14 years.

“With Dr. Steed’s departure, we are confident we have senior leaders who can step in and guarantee that MetroHealth will continue to be a beacon of excellence for our patients and our community,” MetroHealth said.