Steward Health CEO Refuses to Testify Despite Senate Panel Subpoena
Background on Steward Health Care’s Bankruptcy
Steward Health Care, a major hospital system, filed for bankruptcy in May and is currently attempting to sell off its 30 hospitals across eight states. The company’s bankruptcy has raised questions about the management of the hospitals and the potential profits made by its CEO, Ralph de la Torre.
CEO Refuses to Testify
Despite a subpoena from the Senate Health Committee, de la Torre has refused to testify about the company’s bankruptcy and financial struggles. In a letter to the committee, his attorneys argued that it would be inappropriate for him to testify while the bankruptcy proceedings are ongoing. They also accused committee members of trying to turn the hearing into a "pseudo-criminal proceeding" and criticized the committee for attempting to make "predeterminations of alleged criminal misconduct."
History of Accusations
For years, de la Torre has faced accusations of personally profiting from Steward’s financial struggles, while the company’s hospitals have struggled to stay afloat. The company was previously backed by private equity firm Cerberus Capital Management, which converted it into a for-profit hospital system.
Financial Distress
During the period when Steward’s hospitals were struggling, the company’s owners paid themselves millions in dividends, while patients and healthcare providers were affected by the financial distress. The hospitals were forced to close or sell off assets to pay off debts.
Accusations of Greed
De la Torre has been accused of profiting from Steward’s financial struggles. He owns a 190-foot, $40 million yacht, a $15 million sportfishing boat, and a mansion in Dallas. He also had a majority stake in a Steward affiliate that owned two corporate jets valued at $95 million.
Senate Panel’s Response
The Senate Health Committee is not pleased with de la Torre’s refusal to testify. Committee Chairman Senator Bernie Sanders (I-Vt.) stated that he is "disappointed, but not surprised" that de la Torre refused to testify, given the accusations of greed and financial mismanagement. Sanders said that he is working with committee members to determine the best path forward and plans to move aggressively to compel de la Torre to testify.
Joint Statement from Massachusetts Senators
Massachusetts Senators Elizabeth Warren (D) and Edward Markey (D) also condemned de la Torre’s refusal to testify, stating that he "owes the public and Congress answers for his appalling greed" and that he should be held in contempt if he fails to appear before the committee.
Conclusion
Steward Health Care’s bankruptcy and de la Torre’s refusal to testify have raised serious concerns about the management of the company and the potential profits made by its CEO. The Senate Health Committee will continue to investigate the company’s financial struggles and may take further action to compel de la Torre to testify.
FAQs
Q: Why did Steward Health Care file for bankruptcy?
A: Steward Health Care filed for bankruptcy in May as it struggles to sell off its 30 hospitals across eight states.
Q: What are the accusations against CEO Ralph de la Torre?
A: De la Torre has faced accusations of personally profiting from Steward’s financial struggles, while the company’s hospitals have struggled to stay afloat.
Q: Why did de la Torre refuse to testify before the Senate Health Committee?
A: De la Torre’s attorneys argue that it would be inappropriate for him to testify while the bankruptcy proceedings are ongoing.
Q: What are the potential consequences for de la Torre if he fails to testify?
A: The Senate Health Committee may hold de la Torre in contempt if he fails to appear before the committee and testify.
