Eric Wang

A former chief operating officer of Yale New Haven Hospital sued the hospital last week, alleging that the hospital owes him $994,000 for breaching a contract to pay a series of post-termination payments after his resignation.

According to the complaint filed by former COO Michael D. Holmes on Nov. 5, the hospital failed to issue the first payment of $248,000 — which the complaint says was due on Sep. 3, 2025 —and has refused to make any future payments, claiming that Holmes “failed to provide sufficient notice of his intent to resign.”

“We are aware of the lawsuit that has been filed. Yale New Haven Health denies the allegations and intends to vigorously defend against them,” Yale New Haven Health System spokesperson Carmen Chau wrote in a statement to the News.

The complaint claims that Yale New Haven Hospital agreed to provide a series of post-termination payments, known as covenant payments, if Holmes abided by the terms of a non-compete agreement. According to Holmes’ complaint, the hospital has not claimed that Holmes violated the non-compete agreement.

Holmes signed the non-compete in 2013, when he joined the hospital as its senior vice president of operations. The agreement calls for three payments over 18 months after his termination date to “incentivize not joining a competitor.”

Holmes’ filing claims he began searching for new employment in 2024 due to “YNHH’s increasing mismanagement of its healthcare system and due to a number of resignations of senior leaders caused by that mismanagement.”

Holmes did not respond to a request for comment.

He was offered a position as senior vice president and Gainesville regional president at the University of Florida Health System on Jan. 30, 2025, and accepted the position on Jan. 31, the lawsuit says.

In a Jan. 31 letter included as an exhibit in Holmes’ complaint, YNHH Chief Human Resources Officer Melissa Turner told Holmes that he had failed to give three months’ notice of his resignation, as required under his employment agreement and was therefore ineligible for any payments.

In his lawsuit, Holmes argues that the hospital is pointing to an agreement completely separate from the non-compete agreement.

“To justify its flagrant breach of its contractual obligations, 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,” Holmes’ complaint reads. “The Non-Compete Agreement does not contain any provisions that would have required Plaintiff to provide advance notice of his intent to resign.”

The lawsuit adds that Holmes remains in compliance with the non-compete, which bars him from working within 120 miles of New Haven. Holmes argues that his new position in Gainesville, Florida — approximately 1,000 miles away — does not violate that requirement.

Holmes is seeking $994,000 in compensatory damages for the actual and anticipated breaches of the non-compete agreement, in addition to legal fees and other relief the court may deem appropriate.

Becker’s Hospital Review ranked Yale New Haven Hospital the United States’ second largest hospital by bed count in 2021.