The chief executive officer of an embattled health service on the Victorian-New South Wales border has stepped down.

Albury Wodonga Health (AWH) board chair Jonathan Green announced this morning that Bill Appleby had resigned and Andrew Way would stand in as interim CEO from Wednesday.

In the announcement, Mr Appleby said it had been a privilege to lead AWH.

“I would like to thank our staff and volunteers who turn up each day to do their very best, to deliver high-quality, safe, compassionate care to our patients and their families,” he said.

“I would also like to thank the AWH board and executive team for their steadfast leadership in implementing much-needed transformation across this critically important health service.”

Mr Green thanked Mr Appleby for his service.

“Bill has led AWH through a period of sustained pressure across the health system, with a clear focus on strengthening the organisation and supporting its people,” he said.

Votes of no confidence

The announcement comes after more than 100 doctors passed a vote of no confidence in Albury Wodonga Health’s executive leadership after a number of senior staff were sacked.

Staff say their colleagues have been sacked over criticisms of a controversial $558 million redevelopment of the hospital.

The entrance to a hospital

Albury Hospital staff say there have been safety concerns at the hospital. (ABC News: Jason Katsaras)

The Albury Hospital Branch of the NSW Nurses and Midwives’ Association echoed those concerns.

“Nurses and midwives working across AWH have raised serious and longstanding concerns regarding safety, governance and organisational transparency,” union delegate and nurse Kim Cole said after a union meeting on March 20.

The union also called on both the NSW and Victorian health ministers to address staff who did not feel safe to raise patient safety concerns at the hospital.

The interim CEO, Professor Way, is expected to meet with staff on Wednesday.

In a statement, an AWH spokesperson said Professor Way would work with staff to implement all of the findings of Safer Care Victoria’s independent review.

Calls for more resignations

Stan Stavros, the spokesperson for community advocacy group Better Border Health, told Victorian Statewide Mornings he was not surprised by the announcement.

He said Mr Appleby’s resignation was “inevitable” after multiple votes of no confidence since October last year and poor staff survey results.

“This is not a moment for warm words or hollow tributes,” he said.

“Under Mr Appleby’s leadership, serious concerns were raised about the culture at Albury Wodonga Health, including claims of fear, intimidation and harm to the careers of respected doctors and nurses.”

He said the health service needed to reinstate several senior staff members who had left the health service in recent months.

A man with a stern look on his face stands outside a red brick building.

Stan Stavros has called on more AWH executives to stand down. (ABC Goulburn Murray: Erin Somerville)

“If [AWH] is serious about rebuilding trust, the change cannot stop with the CEO,” he said.

“Better Border Health is calling for the immediate reinstatement of John Stuchbery, Lachie McKeeman, Geoff Hudson and David Clancy in the interests of patient safety, clinical leadership and community confidence.”

AMA says move a ‘circuit breaker’

Australian Medical Association Victoria president Simon Judkins said the resignation had the potential to be a “significant circuit breaker”.

“Clearly we are in a process of trying to rebuild that trust and confidence in the CEO, board and executive’s relationships with senior medical staff,” Dr Judkins said.

“We are hoping that an announcement like this will enable those relationships to start to be rebuilt.”

Man in shirt with stethoscope wrapped around neck looks at camera. He's in a hospital setting.

Simon Judkins says AMA Victoria is working to restore trust between staff and executive management. (ABC News)

Dr Judkins said he believed the situation at the health service has become “dire”, with trust and confidence between senior medical staff and the board, CEO and executive strained.

He said despite the announcement, more work needed to be done.

“There have been some reasonably constructive meetings between senior medical staff, board members and other members of the executive,” he said.

“We were involved in those, and they started to spell out the next steps in trying to get Albury Wodonga Health back on track.”

Minister says serious improvement needed

Victorian Minister for Health Mary-Anne Thomas acknowledged Bill Appleby’s service to the hospital and said she expected recommendations from the Safer Care Victoria review would be implemented in full.

A woman with glasses looking towards the camera

Mary Anne Thomas says workplace culture at the health service needs improvement. (ABC News)

But she also acknowledged that workplace morale at AWH was at a low.

“There’s no beating around the bush; the culture at AWH needs serious improvement,” she said.

“There is a lot of work to do and we need to get this right.”

She welcomed Professor Way’s appointment, saying he brought extensive experience to the position, after senior health service roles in the UK and more than a decade as the CEO of Alfred Health.

“I am confident that Professor Way is up to this challenge,” she said.

“As the border region grows, it’s crucial AWH is able to attract and retain staff.”