Leigh McJames has resigned from Albury-Wodonga Health's top job after close to three years at the helm.
Mr McJames was appointed for a five-year term as chief executive in May 2016.
His resignation leaves Albury Wodonga Health in search of a chief executive and board chair.
Board chairwoman Nicola Melville, whose term finishes on June 30, said she spoke confidentially to Mr McJames on Monday before Mr McJames announced to his resignation to his executive team and staff on Tuesday.
He will finish up at the organisation on June 7.
Mr McJames said it had been a 'great privilege' to work with AWH staff who were 'an outstanding group of people'.
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"These are never easy decisions but the timing is right for me and for the organisation," he said.
"I have appreciated the opportunity the board gave me and relished our achievements."
Mr McJames joined AWH in 2009 as a transition manager before becoming an executive director in corporate support.
From 2012 Mr McJames had a four-year stint with the National Blood Authority, before returning to AWH as chief executive.
During his time in the top job Mr McJames oversaw the opening of the Albury Wodonga Cancer Centre and the hospital's Cardiac Catheter (Cath) Lab.
Ms Melville, who has sat on the board for 10 years, said she would have loved for Mr McJames to complete his five-year term, but it made sense to replace the board chair and chief executive at the same time.
She said doing so offers the new leaders a fresh start.
Ms Melville said she believes Mr McJames will be taking some time off to assess his future options
"He is a transformation leader," he said.
"He brings people with him, he doesn't impose things and he develops people to to best of their ability.
"[Leigh] has been the right leader and the leader we needed over these three years."
Ms Melville said the board currently had one vacancy, for which a recommendation had been made to the Minister.
She said a board meeting would be held on Wednesday to start the process of recruiting a new chief executive, while the Department of Health and Human Services was looking at whether to replace her internally or to appoint someone new.
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