Erica Stead has been terminated as CEO of MetroHealth Foundation, the hospital system's board of trustees announced at a special meeting Friday afternoon.
The committee said it had not made its decision in haste, but had lost confidence in Stead's leadership.
“We have worked to address our concerns about Dr. Stead’s performance since her initial evaluation. For this reason, the Board is now prepared to consider taking formal action regarding Dr. Stead’s continued employment as President and CEO of this institution,” said Dr. E. Harry Walker, Board Chair. “A resolution has been prepared for consideration by the Board to exercise the right under Dr. Stead’s employment agreement to terminate the employment relationship and agreement immediately and without cause as specified in the agreement, based on the Board’s determination that doing so is in the best interests of the system.”
Walker added in a press release that Stead did not agree with the other point of view.
“It became clear that the Board and Dr. Stead fundamentally disagreed on the priorities and performance standards required of MetroHealth’s CEO to achieve its mission,” Walker said.
Stead was on medical leave and was due to return later this month.
Dr. Christine Alexander-Rager, the system’s chief medical officer, was named acting CEO by the board last week. Alexander-Rager remains in her position, said Dorsena Koonce, a system spokeswoman.
The board and Stead are negotiating the final terms of their separation agreement, Coons said.
Stead was the first Black person, first woman and first nurse to lead the health system in its 187-year history. She was previously executive vice president and CEO of Sinai Health System Chicago and president of Mount Sinai Hospital and Sinai Children's Hospital.
She was appointed in 2022 to replace retiring CEO Dr. Akram Boutros. She joined the system a month ago to replace Boutros after the board fired him for distributing bonuses to himself and others that the board claimed he had not approved.
When Stead joined, she promised to eliminate health disparities in Cleveland, address chronic disease, and address the mental health crisis.
“I want to have a big impact, and that big noise is not for me,” Stead said in an interview with Ideastream Public Media in 2023. “I want to have a deep impact and make a difference in society as a whole.”
MetroHealth also announced cost-cutting measures this week due to missing financial targets.
