Health Care Scandal: Steward Health CEO Steps Down Amidst Bankruptcy and Criticism
ICARO Media Group
**CEO of Steward Health Care Ralph de la Torre Resigns Amidst Scandal and Bankruptcy**
Dr. Ralph de la Torre, the former heart surgeon who built Steward Health Care into one of the largest for-profit, private health care systems in the nation, has announced his resignation as CEO and board chairman. This news follows mounting criticism and financial turmoil that saw Steward spiral into bankruptcy proceedings.
Steward Health Care, founded by de la Torre in Boston in 2010, grew through the acquisition of neglected hospitals. Nevertheless, stories of staff shortages and lack of critical supplies harming patients surfaced this year, tarnishing its reputation. De la Torre, known for his penchant for luxury yachts and corporate jets, became a contentious figure, representing greed within the for-profit health care sector.
The company's financial woes were exacerbated by a controversial $1.2 billion deal in 2016 with Medical Properties Trust, where Steward sold its hospital buildings and land but leased them back. Much of the revenue from this transaction went to pay dividends to the owners, including de la Torre, rather than improving hospital care. The high lease obligations contributed significantly to Steward's $9 billion debt.
Reactions to de la Torre's departure have been scathing. Ellen MacInnis, a nurse at St. Elizabeth’s Medical Center, suggested his resignation was "fourteen years too late". Senator Elizabeth Warren of Massachusetts pointedly remarked that de la Torre’s resignation does not absolve him from accountability. She emphasized that he still needs to face the consequences of ignoring a congressional subpoena and other potential crimes during his tenure at Steward.
The resignation raised questions about why Steward's board, a close-knit group of insiders and associates, chose to accept his resignation rather than terminate him for cause, which would have eliminated ongoing perks. This inaction has been cited as a concerning example of corporate cronyism.
De la Torre, through his spokesperson, acknowledged the challenges facing Steward and attributed them to systemic failures within Massachusetts' healthcare structure. He confirmed he has "amicably separated" from the company he once envisioned and led.
For families like that of Catherina Brancaccio, whose nephew passed away in an understaffed Steward hospital, the resignation brings no solace. She expressed her hopes for accountability in light of what she describes as a legacy of "death and chaos."
As Steward Health Care faces its financial and operational challenges, the spotlight remains on how it will navigate its future without the founding leadership of Ralph de la Torre.