“While important work remains ahead, we have generated significant momentum and are entering the next phase of our financial turnaround with greater focus, discipline, and purpose,” Lembo wrote in the email, obtained by the Globe.
In a statement Wednesday, Dandorph called his tenure at the health system a “distinct privilege.”
“I am proud of what we have accomplished together and am grateful to the amazing physicians, nurses, researchers, learners, staff and leaders whose commitment to our mission has inspired me every day,” Dandorph said. “I believe this transition is in the best interest and the right time for Tufts Medicine.”
It’s been a brutal few years for Tufts Medicine, which has struggled to compete with other major health systems in the Boston area. Fiscal year 2025 was the fourth year in a row Tufts Medicine operated in the red.
Tufts Medicine is also facing soaring health care costs and impending cuts to Medicaid, the government insurer for the poor and disabled. Those cuts could cause significant strain for Tufts, as it serves larger proportions of patients on government insurance, which typically pays lower reimbursement rates for care. About two-thirds of patients at three Tufts hospitals — Tufts Medical Center, Lowell General Hospital, and MelroseWakefield Hospital — were on Medicare or Medicaid in 2024, according to Massachusetts Center for Health Information and Analysis data.
Tufts Medicine reported a $46 million loss on operations in the first half of this fiscal year, which some specialists called a sign of stability, as that loss was similar to its results from the year prior.
Lembo said in his email that Dandorph’s leadership has been key to expanding Tufts Medicines’ partnerships, patients’ access to care, and “positioning the organization for its next chapter despite unprecedented financial challenges.”
“We are grateful for his dedication to this organization and the lasting legacy of his leadership,” Lembo said.
Massachusetts Health & Hospital Association CEO Steve Walsh said in a statement he was grateful for Dandorph’s work, including as cochair of the organization’s task force on workforce leadership.
“Since Day One of overseeing Tufts Medicine, Mike has been a committed and compassionate partner in uplifting our commonwealth’s entire healthcare system,” Walsh said.
The Tufts Medicine board has appointed Phil Okala, currently the system’s chief operating officer, to be acting president and CEO upon Dandorph’s departure. Okala has held several leadership roles at Tufts and other health systems nationwide, including City of Hope in California and Penn Medicine in Pennsylvania, according to the internal email.
“Our focus remains unchanged: serving our patients and communities, supporting our people, strengthening our financial position and continuing to advance Tufts Medicine’s mission to empower people to live their best lives,” Okala said in a statement.
In addition to the change in CEO, Tufts Medicine said the system’s executive vice president and chief financial officer, Andrew DeVoe, will also be leaving. The system plans to conduct a national search to find his replacement, according to Lembo’s email.
Alexa Gagosz and Dan McGowan of the Globe staff contributed reporting.
Marin Wolf can be reached at marin.wolf@globe.com.