All Sides Claim Victory After Ohio Auditor Report on Akram Boutros Bonus Saga at MetroHealth

Akram Boutros Credit: Courtesy MetroHealth

Ohio Auditor Keith Faber’s office this week released the results of a two-year audit and investigation into $1.9 million in bonuses issued and received by Akram Boutros during his tenure as CEO of MetroHealth. The hospital’s board, in 2022, fired him over the payments, claiming they were unauthorized.

What followed was a string of bad public relations on all sides, two lawsuits from Boutros against MetroHealth (one of which was recently dismissed by a judge, the other of which Boutros withdrew on his own), and an ongoing saga at the hospital as it hired and then fired subsequent CEO Airica Steed, who has threatened her own lawsuit against Metro.

One of the lingering questions on the Boutros question was whether what Metro accused him of doing — secretly issuing himself millions of dollars in unauthorized bonuses — constituted a criminal offense, since MetroHealth receives public financial support.

Which is where the Ohio Auditor’s office came in at the request of Cuyahoga County Prosecutor Mike O’Malley.

Two years later, the report has all sides claiming victory, as the the audit found that there was ambiguity in the contract that established the supplemental bonus system which “makes Boutros’ interpretation, and thus his actions, not unreasonable and, therefore, not criminal,” but added it “was not able to determine whether Dr. Boutros had proper authorization to receive the SPBVC, as there was reasonable doubt based on the information gathered.”

Metro’s board feels vindicated, telling Cleveland.com the report showed “the board acted properly in terminating Boutros for cause and recouping millions of dollars in unauthorized bonus payments.”

For Boutros, the investigation was a clear victory (especially as some outlets mistakenly report that it “cleared” him.)

“I am gratified that the Auditor of State’s comprehensive investigation has confirmed the truth about my compensation and proves that I have done nothing wrong,” Boutros said in a statement. “Despite how my tenure ended, my 10 years at MetroHealth were the most gratifying of my career. I love the staff and patients and am honored to have led a team that significantly improved healthcare in Cuyahoga County, and shepherded MetroHealth to become the most socially responsible health system in Ohio.”

But those are simply the top-level takeaways tailor-made for headlines. Each side, if you read the findings, also comes out looking like a loser.

The report, for instance, noted that Metro’s board should have been fully aware of something as basic as what it was paying its CEO: “His total compensation was processed through the payroll system, which appears not to have been reviewed by either the Board or the compensation consultants, thus directly contributing to its unawareness about the (bonus) program.”

And while the report found Boutros engaged in no criminal wrongdoing, it doesn’t quite “clear” him for issuing himself the bonuses. In fact, quite the opposite: “We were unable to identify any supporting documentation for overt authorization by the Board for Dr. Boutros’ participation in the SPBVC.”

Does that mark the end of the sage? One might think so, but while Boutros last December withdrew his wrongful termination lawsuit due to health issues, his lawyers said at the time he intends to refile it once his condition improves.

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