In a move to uncover the truth behind the financial collapse of Steward Health Care, Senators Ed Markey of Massachusetts and Bernie Sanders of Vermont have announced their intention to request a Senate panel to subpoena Steward's founder and CEO, Ralph de la Torre. The senators aim to investigate the "financial schemes" that have left the national hospital chain with approximately $9 billion in debt.

Moreover, Markey and Sanders plan to bring the matter to the Health, Education, Labor and Pensions Committee, chaired by Sanders, in order to open a thorough inquiry into the mismanagement and questionable financial practices that have plagued Steward Health Care. The committee is set to vote on issuing the subpoena and initiating the investigation next Thursday.

De la Torre, who has reportedly "arrogantly refused" previous invitations to testify before Congress regarding Steward's mismanagement, may now be compelled to testify under subpoena. This comes as Steward Health Care faces bankruptcy and plans to sell about 30 hospitals in eight states, along with its nationwide physicians network, in an effort to repay its creditors.

Notably, Steward paid nine executives over $1 million each in the year leading up to the bankruptcy filing, raising concerns about excessive spending by the company. Additionally, the hospital chain spent $1.6 million on a surveillance firm just months before filing for bankruptcy, further fueling scrutiny over its financial decisions.

Although bids for eight of the Massachusetts hospitals were due on Monday, Steward has yet to disclose the number of bids received or the hospitals they encompass. The company has attributed its financial woes to rising interest rates, labor costs, and inadequate government health insurance payments.

While Steward Health Care declined to comment on the senators' call for a subpoena, it is worth noting that the company relocated its headquarters from Boston to Dallas in 2018.

Markey has long been a vocal critic of de la Torre, who is a former Boston cardiac surgeon and founded Steward Health Care in 2010 with financial backing from Cerberus Capital Management, a private equity firm based in New York. Both senators issued a joint statement, branding de la Torre as the "poster child for outrageous corporate greed" within the for-profit healthcare system.

Earlier this year, Markey held a field hearing at the State House in Boston, where he and Senator Elizabeth Warren highlighted Steward's financial meltdown as an example of private equity exploiting the healthcare system. At the hearing, Markey pointed to an empty chair, symbolizing de la Torre's refusal to testify, and criticized him for failing to deliver on promises of providing affordable, high-quality healthcare.

De la Torre's career at Steward Health Care began in 2008 when he was hired by the Archdiocese of Boston to revive Caritas Christi Health Care, a chain of struggling Catholic hospitals in Eastern Massachusetts. He subsequently sold the hospitals to Cerberus in 2010 and rebranded the system as Steward, later expanding it nationally by acquiring hospitals in states such as Florida, Texas, and Arizona.

Throughout Steward's expansion, the company engaged in several financial transactions that have come under scrutiny, including a $1.25 billion deal with Medical Properties Trust Inc., a real estate investment trust, and a $335 million loan taken out in 2021 to buy out Cerberus' interest. A lawsuit filed by a Steward creditor alleged that de la Torre received the majority of a $111 million dividend paid to shareholders.

Steward's lack of financial transparency, including details regarding executive compensation, has also raised concerns among state regulators. Public records indicate that de la Torre purchased a 90-foot sports fishing boat and a 190-foot yacht, further raising questions about the company's financial management.

With the Senate panel's potential subpoena, the path to shedding light on Steward's financial collapse and holding its leadership accountable moves forward. The investigation aims to address the financial schemes that have left Steward Health Care burdened with immense debt, and it is expected to yield significant insights into the management practices that led to this crisis.