Airica Steed, who became CEO of MetroHealth in December 2022 and was fired less than two years later, sued the public hospital’s board Monday.
Steed alleges in the lawsuit that she was subjected to racial discrimination and fired by the board unlawfully while on medical leave despite having received positive performance reviews.
She also claims that the board retaliated against her after she raised concerns about racial discrimination within the executive ranks and about missing public records; the board made public comments after her firing that harmed her reputation; and the board leaked her travel expenses to reporters to make her look bad.
“These false and disparaging statements are in direct conflict with the actual facts about Steed’s job performance, during which time she earned 121% of her performance-based compensation in April 2024 following a commendable performance review in March 2024,” says her lawsuit, which was filed in Cuyahoga County Court of Common Pleas.
MetroHealth, which has not filed a response in court, said in a statement that allegations in the suit are “baseless.”
“We will strongly defend ourselves and all individuals named as defendants in the lawsuit,” hospital spokesman William Dube wrote.
Steed’s lawsuit does not specify how much money she is seeking beyond damages above $25,000.
Steed’s predecessor, Akram Boutros, is also suing the hospital for wrongful dismissal and defamation. Boutros was fired more than two years ago, after the board learned that Boutros awarded himself $1.9 million in bonuses over several years. His lawsuit contends that he was entitled to the bonuses and that he followed the board’s approved compensation plan for awarding the bonus to himself and employees. Boutros’ lawsuit claims board members cost him $8 million in lost compensation and severance, $20 million in harm to future job prospects and “additional tens of millions more” in damage to his reputation.
Board cites lack of confidence in Steed’s leadership
The board voted on August 9 to unanimously to fire Steed, citing its lack of confidence in her ability to lead the hospital in a troubled healthcare industry.
MetroHealth’s board chair, Dr. E. Harry Walker, said at the time that the “board has lost confidence in Dr. Steed’s ability to lead the system.”
The board did not cite specific reasons for firing her. In a statement posted on the MetroHealth website after she was fired, the board said it disagreed with Steed’s priorities.
Steed’s firing came weeks after she took a medical leave. She said she was shocked by her firing and learned about it through media reports.
Public records show that disagreements between the board and Steed began well before that, including over her travel and expenses.
Tension arose with hospital board prior to Steed’s medical leave
Steed had received positive performance reviews, public records show. In general, the comments praised Steed for her work in the community, for raising the profile of the hospital and for guiding Metro through turbulent times, following both the COVID-19 pandemic and an abrupt and messy leadership change. The review that proceeded Steed’s firing also raised concerns about her travel, lack of presence around the hospital and relationship with the board.
The full performance review did not offer insight into exactly how much time Steed traveled on hospital business. But the board analyzed her travel – and local business expenses – in a separate report, which Signal Cleveland obtained through a public records request. The report, which covered 2023 and 2024, doesn’t address why the board asked for the review of expenses.
The report shows Steed traveled frequently, nearly every month, often multiple times a month. The trips were tied to healthcare and leadership conferences, some that featured her as a speaker or where she received awards.
Shortly after Steed’s firing, some reporters in town, including at Signal Cleveland, received unsolicited internal documents – including some confidential reports that have been verified – that show Steed had complained about being the victim of “a hostile and toxic work environment fueled by racism and discrimination.” That complaint, dated July 16, 2024, was sent to MetroHealth’s legal and human resources department. The complaint was made at a time of heightened tension between the board and Steed and just before she took the medical leave.
Steed, who holds a doctorate in educational leadership, was the first African-American woman to lead the hospital, often viewed as the city’s safety net, though its expertise extends to many areas of public health and primary care.
Steed, whose salary, including bonus, was $1.2 million, was an at-will employee, according to a copy of her contract. That means the board could fire her at any time, with or without a cause. That’s typical of high-profile positions.
Steed’s contract also afforded her a severance package typical of such positions. It guaranteed that she would receive her base salary of $900,000 for one year and allowed for her to receive the salary for a second year under certain circumstances. The contract also left room for negotiations around the severance agreement, which can involve a promise not to sue or disparage the employer.
For months, the hospital – whose legal team included former U.S. Housing and Urban Development Secretary Marcia Fudge – and Steed had been discussing her severance package.
The story was updated to include MetroHealth’s response to the Steed’s suit.
