MetroHealth announced this week that its CEO, Dr. Akram Boutros, who has led the hospital system for nearly 10 years, has been fired. The firing comes on the heels of revelations that Boutros had given himself more than $1.9 million in unauthorized bonuses over the last four years.
In their statement, MetroHealth’s Board of Trustees praised Boutros for the positive things that he has done during his tenure but went on to say “…we know of no organization that permits its CEO to self-evaluate and determine their entitlement to an additional bonus as Dr. Boutros has done.”
Boutros has repaid the hospital system $2.1 million for the money he received which includes interest and has self-reported his actions to the Ohio Ethics Commission, which oversees the conduct of public officials. He announced earlier this year that he would be stepping down as of January of 2023.
Pursuant to Section 339 of the Ohio Revised Code, the MetroHealth system is governed by a board of ten voluntary members nominated by the county executive, the senior judge of common pleas court and the probate judge, and confirmed by the county council.. Members serve six-year terms. A review of the current board members shows individuals with impressive resumes, years of experience with public institutions and boards, and holding other significant positions in the community.
But with all this firepower and experience, somebody dropped the ball. Where was the oversight of the budget? Who was watching the books? A bonus of $1.9 million over four years is roughly $475,000 a year. Realizing that the system’s budget must be hundreds of pages long, it still seems that someone would have raised a question. Where were the auditors and human resource managers? Who signed the checks?
By the board of trustees’ own admission, they are the only ones that can approve the CEO’s compensation, including bonuses and set performance evaluation metrics — all which Boutros did himself from 2018-2022. So how did Boutros’ bonuses go unnoticed? Did the board ever conduct an evaluation?
According to the board’s statement, the issue of the bonuses arose when they launched an internal investigation, led by the Tucker Ellis law firm when they started the transition process for the hiring of the new CEO, Dr. Airica Steed who will take the helm on December 5, 2022. So, seemingly, if Boutros had chosen to stay, he might be still raking in the big bucks.
Back in 2019, the last of four defendants was sentenced to federal prison for their roles in a conspiracy to defraud MetroHealth Hospital system through a series of bribes and kickbacks. In a statement released by the United States Attorney’s Office for the Northern District of Ohio on May 3, 2019, former hospital Chief Operating Officer Edward R. Hills was sentenced to more than 15 years in prison. The other three defendants received sentences ranging from 5-12 years for engaging in a racketeering conspiracy from 2008-2016 involving a series of elaborate bribery conspiracies, witness tampering and other crimes, all of which involved funds belonging to MetroHealth. As a part of the criminal activity, Hills regularly upwardly adjusted the bonuses of two of the co-defendants and other by approximately $92,892. Sound familiar?
By way of defense, Boutros through his attorney says that his firing was retaliatory, and that Boutros had recently exposed board misconduct in connection with the hiring of a new CEO. Through his attorney Jason Bristol, Boutros claims board members met privately with his successor and that Board Chair Vanessa Whiting signed agreements and authorized payments without board approval. He also claims that bonuses were also given to other eligible employees but that he was the only employee forced to return funds.
Clearly, there are several sides to this story. Whether the truth comes out in the court of public opinion or a court of law will be up to state and federal prosecutors. As of right now the scenario sounds like what many lawyers say about the facts in divorce cases — there’s his side, her side and the truth.
Boutros will have his chance to present his evidence before the Ohio Ethics Commission or in a civil court if he chooses to bring legal action against his former employer. But MetroHealth’s board, as a public body, owes the taxpayers an explanation as to how $1.9 million left their coffers without anyone noticing.
C. Ellen Connally is a retired judge of the Cleveland Municipal Court. From 2010 to 2014 she served as the President of the Cuyahoga County Council. An avid reader and student of American history, she serves on the Board of the Ohio History Connection, is currently vice president of the Cuyahoga County Soldiers and Sailors Monument Commission and president of the Cleveland Civil War Round Table. She holds degrees from BGSU, CSU and is all but dissertation for a PhD from the University of Akron.
One Response to “Who’s Watching the Store at Metro Health? by C. Ellen Connally”
Chuck Ackerman
It is unbelievable that no one on the board paid attention to this. That’s a big chunk of change. Perhaps it’s time for some fresh faces on the board.