Steed was removed by the board last summer while on medical leave after less than two years on the job. She filed her lawsuit on Feb. 3 in the Cuyahoga County Court of Common Pleas. Steed said she issued the comments to clarify the reasons for her “unlawful termination” since much of the media coverage of her lawsuit focused on her allegations of discrimination at MetroHealth.
Steed claims that shortly after she became MetroHealth’s president and CEO in December 2022, she discovered that MetroHealth’s in-house legal counsel had instructed the deletion of years of hospital records. Concerned about potential legal violations, she ordered an internal risk audit by Ernst & Young.
The audit, she claims, flagged significant governance risks, missing public documents, and ethical violations. The audit recommended a forensic investigation, but Steed alleges the MetroHealth Board interfered, preventing further scrutiny.
To ensure an independent review, Steed brought in Benesch Law, but she claims the board also obstructed that investigation, leading both Ernst & Young and Benesch Law to resign.
“The request for a forensic investigation was necessary to ensure MetroHealth’s integrity and transparency,” Steed contended. “The internal audit risk assessment, coupled with other reports, raised serious concerns, and I acted to protect MetroHealth by ensuring that these issues were fully addressed. Unfortunately, the Board resisted these efforts and interfered with the independent investigation, ultimately preventing it from moving forward.”
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In response to Steed's allegations, a spokesperson for MetroHealth told Crain's, “As we have repeatedly stated, these allegations are baseless, and we will vigorously defend ourselves in court. The MetroHealth Board of Trustees felt that Dr. Steed could not take the organization in the direction needed and ended its relationship with her pursuant to the terms of her at-will employment contract. The Board’s focus has been and always will be on making decisions that support the delivery of high-quality care to the patients and community we serve.”
Steed claimed that under her leadership, MetroHealth’s revenue grew from $1.6 billion to $2 billion, and she launched major health equity initiatives focused on maternal health, mental health, and opioid crisis interventions. In April 2024, she was recognized as one of Modern Healthcare’s “Top Women Leaders in Healthcare” and was inducted as a Fellow in the American Academy of Nursing.
“Every success I had was achieved in the face of overwhelming adversity. I navigated through a chaotic and toxic environment, and despite this, I succeeded in moving MetroHealth forward,” said Steed, MetroHealth’s first Black, female and nurse CEO. “The board never had a conversation with me about my performance. Instead, I learned of my firing through the media, which only compounded the lack of respect and dignity with which I was treated.”
She also claimed she "faced discriminatory challenges that were amplified when I raised questions about the Board's governance. "
"The way I was terminated and the defamatory statements made against me have been personally and professionally devastating," she added. "However, I remain resolute."
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Steed’s lawsuit seeks damages exceeding $25,000 to be proven at trial, reinstatement, and a public retraction of defamatory statements regarding her performance, as well as other economic and noneconomic damages. Dr. Steed is represented by the law firm Thrasher, Dinsmore & Dolan.
“This has set back my career, but I will not let this define me,” she said. “I want the record to reflect the true story of my leadership at MetroHealth and my dedication to improving the health and well-being of the community. I will continue to work toward that goal and ensure that MetroHealth’s true impact is recognized.”
MetroHealth's newest comments echo previous assertions the hospital system made. In a statement sent to Crain’s on Feb. 3, MetroHealth called the allegations in Steed's lawsuit “baseless."
"We will strongly defend ourselves and all individuals named as defendants in the lawsuit," it said.
Dr. Christine Alexander-Rager, who has been with the health system for nearly three decades, was named acting president and CEO in July. In October, she was promoted to the role through 2025.
This is the second lawsuit filed against MetroHealth by a former CEO.
Dr. Akram Boutros, who was fired by MetroHealth’s board in November 2022 over $1.9 million he paid himself in bonuses, sued the health system in November, accusing MetroHealth of breach of contract, promissory estoppel and defamation. MetroHealth has said Boutros was not authorized to pay himself bonuses. Boutros has denied any wrongdoing. The Ohio Ethics Commission found insufficient evidence demonstrating that Boutros violated any ethics laws.
Crain's Cleveland reporter Paige Bennett contributed to this report.
This story first appeared in Crain's Cleveland Business.
