Lawmakers are gearing up to vote on holding Steward Health Care CEO Ralph de la Torre in contempt of Congress next week after he failed to appear at a hearing on Capitol Hill where he was subpoenaed to testify. This move comes as the company, which once owned over three dozen hospitals across eight states, declared bankruptcy earlier this year and has been struggling to find buyers for its facilities.
The decision to compel de la Torre’s testimony is a rare one, with the last subpoena issued by the committee dating back to the 1980s. Senator Bill Cassidy of Louisiana, the ranking Republican member of the Senate committee investigating Steward, expressed his disappointment at de la Torre’s absence, emphasizing the importance of testifying to provide insight and potentially clear his name. Cassidy’s sentiments were echoed by committee chairman Senator Bernie Sanders of Vermont, who refused to postpone the hearing despite de la Torre’s attorney’s request to delay until after the bankruptcy proceedings were resolved.
During the hearing, lawmakers heard from health care workers and local officials in communities impacted by Steward’s bankruptcy. A CBS News investigation over the past two years has highlighted how private equity investors, including de la Torre, extracted large sums of money while health care workers and patients struggled to access necessary supplies. The closure of two Massachusetts hospitals last month, resulting in approximately 1,200 job losses, further underscored the challenges faced by Steward Health Care.
In addition to facing congressional scrutiny, Steward is also the subject of a criminal probe by the Department of Justice. A federal grand jury in Boston is currently examining the compensation, spending, and travel of the company’s top executives, including de la Torre. Despite these investigations, de la Torre has maintained his innocence through a spokesperson, denying any wrongdoing.
Senator Ed Markey of Massachusetts, a member of the committee, has been vocal in his criticism of de la Torre, referring to him as “a fugitive on the run” for defying the legal order to appear before Congress. Markey accused de la Torre and private equity investors of prioritizing profits over patient care, alleging a violation of the Hippocratic oath for a former cardiac surgeon like de la Torre. The spokesperson for de la Torre defended his actions, stating that he had done everything in his power to support Steward Health Care during challenging times.
Senator Cassidy, who is also a medical doctor, shared disturbing accounts from his constituents in Louisiana about supply shortages at the local Steward hospital. He emphasized the need for bipartisan cooperation to address financial maneuvers that allowed investors to profit while patient care suffered. Despite political differences, Cassidy expressed his commitment to working with Senator Markey to ensure people receive the healthcare they need.
The looming prospect of de la Torre facing criminal or civil penalties for failing to appear before Congress adds another layer of complexity to the ongoing investigations into Steward Health Care. The company’s bankruptcy and subsequent struggles have raised questions about the role of private equity in healthcare and the ethical responsibilities of executives like de la Torre. As the situation continues to unfold, lawmakers and investigators remain focused on holding accountable those responsible for the challenges faced by Steward Health Care and its stakeholders.
