Steward Health Care’s CEO, Ralph de la Torre, has long been the subject of accusations regarding his alleged profiting at the expense of patients in the numerous community hospitals owned by the Dallas-based company. Despite avoiding public responses to these allegations for years, de la Torre will now be forced to address them on Capitol Hill. A bipartisan group of senators voted to launch an investigation into Steward Health Care and issued a subpoena to de la Torre, requiring him to testify at a public hearing on September 12 before the Senate Committee on Healthcare, Education, Labor, and Pensions.
Senator Bernie Sanders, referring to de la Torre as “the poster child for corporate greed in health care,” emphasized the need for accountability and transparency. Senator Edward Markey echoed these sentiments, highlighting the concerns about private equity taking over hospital systems and exploiting them for financial gain. The senators stressed the importance of de la Torre explaining the financial practices of Steward Health Care and addressing the allegations of misconduct.
While a spokesperson for Steward did not immediately respond to requests for comment, de la Torre, in a company statement during their bankruptcy reorganization in May, emphasized their efforts to operate successfully in a challenging healthcare environment. The company also announced plans to sell all of its hospitals, amid growing scrutiny and investigations into their financial dealings.
The Senate investigation comes on the heels of federal prosecutors in Boston launching their own probe into Steward Health Care on allegations of fraud and violations of the Foreign Corrupt Practices Act. Additionally, a CBS News investigation shed light on how private equity groups have siphoned millions from community hospitals, including Steward’s, with detrimental effects on patient care and public health.
Documents reviewed by CBS News revealed that Steward’s owners paid themselves substantial dividends while de la Torre acquired a multimillion-dollar yacht. Reports also detailed instances of unpaid bills and shortages of essential supplies at Steward hospitals across the country, raising concerns about patient safety and quality of care.
Governor Maura Healey of Massachusetts expressed disgust at the actions of Steward Health Care, accusing them of prioritizing profit over patient well-being. She cited examples of financial decisions leading to the closure of critical healthcare facilities and compromising patient care.
Despite assertions from Steward that patient well-being is a top priority, investigations have uncovered instances of defective medical equipment, staffing challenges, and other issues that could potentially impact patient safety. A court-appointed monitor highlighted these concerns, emphasizing the need for improvements in the management and operations of Steward hospitals.
In response to the growing scrutiny, Democratic lawmakers introduced legislation aimed at regulating financial transactions in the healthcare sector to prevent exploitation and ensure patient safety. Senator Markey emphasized the need for permanent safeguards to protect patients, providers, and communities from corporate greed and exploitation in the healthcare industry.
The ongoing investigations and legislative efforts underscore the urgent need for accountability and transparency in healthcare management. The allegations against Steward Health Care and its CEO highlight broader systemic issues within the healthcare industry that require comprehensive reforms to prioritize patient care and well-being over financial gain. The upcoming hearings and legislative proposals will play a crucial role in shedding light on these issues and holding accountable those responsible for jeopardizing patient safety and public health.
