Steward Health Care CEO Refuses to Comply with Senate Subpoena Amid Bankruptcy Investigation
ICARO Media Group
Steward Health Care CEO, Ralph de la Torre, is defying a subpoena to appear before a U.S. Senate committee investigating the hospital company's recent bankruptcy, according to his lawyers. In a letter to Vermont U.S. Sen. Bernie Sanders, who chairs the Senate Health, Education, Labor and Pensions Committee, de la Torre's lawyers argued that he needs to remain silent to respect the ongoing hospital reorganization and settlement efforts in compliance with a federal court order.
Dallas-based Steward Health Care, which operated approximately 30 hospitals nationwide, declared bankruptcy earlier this year and has been working towards selling their hospitals in Massachusetts. However, unsatisfactory bids for Carney Hospital in Boston and Nashoba Valley Medical Center led to their closure last weekend. On Wednesday, a federal bankruptcy court approved the sale of Steward's other hospitals in Massachusetts.
De la Torre's legal team accused the Senate committee of attempting to transform the hearing into "a pseudo-criminal proceeding" with the intention of convicting him in the court of public opinion rather than gathering factual information. They argued that it is not the committee's role to pass judgment on alleged criminal misconduct during the bankruptcy proceedings, and that the committee's actions appear to violate de la Torre's constitutional rights.
While de la Torre refused to testify before the committee at this time, he did not rule out the possibility of appearing at a later date. In response, Sanders expressed determination to press de la Torre for answers, stating that Congress will hold him accountable for what is perceived as greed and the negative impact on hospitals and patients across America.
Outraged by de la Torre's refusal to appear, Massachusetts U.S. Sens. Edward Markey and Elizabeth Warren, both Democrats, issued a joint statement condemning his actions. They called for de la Torre to be held in contempt if he fails to appear before the committee, emphasizing that he owes the public and Congress answers regarding the alleged mismanagement of Steward Health Care.
The Senate committee now faces important decisions, including the possibility of holding de la Torre in criminal contempt, which could lead to a trial and potential jail time, or civil contempt resulting in fines until he appears. These actions would require a Senate vote.
Markey and Warren added in their statement that de la Torre's wealth increased while hospitals that employed thousands of healthcare workers in Massachusetts and across the country faced bankruptcy. They accused him of using hospitals as a personal source of profit while neglecting their well-being.
This isn't the first time de la Torre has turned down an invitation to testify. Earlier this year, he declined to participate in a Boston field hearing chaired by Sen. Markey. Sanders has claimed that de la Torre accumulated immense wealth by burdening hospitals with debt and selling their properties to real estate executives who imposed exorbitant rents. As the investigation progresses, the Senate committee intends to take swift action to address what they perceive as gross mismanagement at Steward Health Care.