URGENT UPDATE: Former chief operating officer of Yale New Haven Hospital, Michael D. Holmes, has filed a lawsuit against the hospital, claiming it owes him $994,000 for breaching a contract regarding post-termination payments. The complaint was filed on November 5, 2025, and alleges that the hospital failed to issue an initial payment of $248,000, which was due on September 3, 2025.
According to the lawsuit, Yale New Haven Hospital has refused to make any subsequent payments, asserting that Holmes did not provide adequate notice of his resignation. The hospital’s spokesperson, Carmen Chau, stated, “We are aware of the lawsuit that has been filed. Yale New Haven Health denies the allegations and intends to vigorously defend against them.”
Holmes claims the hospital had agreed to provide a series of covenant payments as long as he adhered to a non-compete agreement. Notably, the hospital has not alleged that Holmes violated this agreement. Holmes signed the non-compete when he joined the institution as its senior vice president of operations in 2013, which stipulates three payments over 18 months after termination as an incentive to refrain from joining a competitor.
In his complaint, Holmes details that he began seeking new employment in 2024 due to what he describes as “YNHH’s increasing mismanagement of its healthcare system” and a wave of resignations among senior leadership. He accepted a new position as senior vice president and regional president at the University of Florida Health System on January 31, 2025.
Holmes argues that the hospital’s denial of payments relies on a different employment agreement that is unrelated to the non-compete terms. He emphasizes that the non-compete does not require advance notice of resignation, stating, “To justify its flagrant breach of its contractual obligations, the defendant points to an entirely separate employment agreement that has no relevance whatsoever to defendant’s obligation to render payments under the non-compete agreement.”
The lawsuit further asserts that Holmes remains compliant with the non-compete clause, which prohibits him from working within 120 miles of New Haven, Connecticut. His new role in Gainesville, Florida, nearly 1,000 miles away, is claimed to be in accordance with these terms.
Holmes is now seeking $994,000 in compensatory damages for both actual and anticipated breaches, along with legal fees and any other relief the court may find appropriate. This lawsuit underscores significant tensions within the hospital’s leadership at a time when Yale New Haven Hospital is ranked as the second largest hospital in the United States by bed count, according to Becker’s Hospital Review.
As this situation develops, the healthcare community will be watching closely, given its implications for hospital governance and executive accountability. Stay tuned for further updates on this unfolding legal battle.
