The lawsuit, filed Feb. 3, claims Dr. Steed was unlawfully terminated “without cause” while on approved medical leave, despite positive performance reviews and earning 121% of her performance-based bonus in April 2024.
“The allegations in this Complaint are baseless,” MetroHealth said in a statement shared with Becker’s. “We will strongly defend ourselves and all individuals named as defendants in the lawsuit.”
MetroHealth’s board voted to terminate Dr. Steed’s contract on Aug. 9, less than three weeks after she took a temporary medical leave. She took the helm in 2022, succeeding Akram Boutros, MD, who was fired after authorizing $1.9 million in supplemental bonuses to himself. Dr. Boutros previously sued the hospital’s board, alleging retaliation.
The board and Dr. Steed “fundamentally disagree about the priorities and performance standards needed from our CEO for MetroHealth to fulfill its mission,” board Chair E. Harry Walker, MD, said in an Aug. 9 health system news release. Dr. Walker is named as a defendant in the lawsuit.
The lawsuit alleges Dr. Steed faced racism and harassment during her tenure and claims her firing was unlawful retaliation for taking approved FMLA leave and reporting what she believed to be financial misconduct and missing public records that could indicate fraud.
It also claims MetroHealth’s board interfered with an external investigation into these concerns.
Additionally, the lawsuit states that Dr. Steed has not received severance and benefits owed to her. It further alleges MetroHealth publicly claimed she was fired for cause, despite officially terminating her without cause.
Dr. Steed is seeking financial compensation for lost wages and emotional distress as well as punitive damages for harm to her career.
Becker’s has reached out to Dr. Steed’s attorney and will update this story if more information becomes available.
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