U.S. Senate Holds Steward Health Care CEO Ralph de la Torre in Criminal Contempt

The U.S. Senate has made a historic decision by voting unanimously to hold Steward Health Care CEO Ralph de la Torre in criminal contempt for failing to comply with a congressional subpoena. This marks the first time in more than 50 years that the Senate has moved to hold someone in criminal contempt.

Subpoena Ignored Amid Bankruptcy

The vote on Wednesday came after De la Torre, head of the Massachusetts-based for-profit healthcare system, ignored a subpoena and failed to appear at a hearing scheduled for September 12. Steward Health Care, which declared bankruptcy earlier this year, has faced mounting allegations of financial abuse under his leadership.

Senator Bernie Sanders Condemns De la Torre

Senator Bernie Sanders, chair of the Senate’s Health, education, labor, and Pensions (HELP) Committee, delivered a strong rebuke against De la Torre during the session. “The passage of this resolution by the full Senate will make clear that even though Dr. de la Torre may be worth hundreds of millions of dollars, even though he may be able to buy fancy yachts and private jets… no, Dr. de la Torre is not above the law,” Sanders declared.

He added, “If you defy a congressional subpoena, you will be held accountable, no matter who you are or how well-connected you may be.”

Bill Cassidy Cites National Impact on Health Care

Senator Bill Cassidy, the ranking member of the HELP committee, highlighted the far-reaching consequences of Steward’s financial mismanagement, which he said affected patient care in over 30 hospitals across eight states. “A thorough review of chief executive officer Dr. Ralph de la Torre’s management decisions was essential to understand Steward’s financial problems and failure to serve its patients,” Cassidy explained.

Cassidy also pointed out the significant payments De la Torre received, estimated to be at least $250 million. At the same time, hospitals under Steward’s management faced severe staffing shortages and facility closures.

Investigative Revelations of De la Torre’s Extravagance

The Boston Globe’s investigations uncovered disturbing details about De la Torre’s personal use of Steward Health Care funds. These funds allegedly went toward lavish jet and yacht travels and a €8 million ($8.9 million) apartment renovation in Madrid. De la Torre is also accused of using company funds for donations to his children’s private school, all while the hospital chain struggled to maintain adequate patient care.

The report further revealed that more than a dozen Steward Health Care patients died after being unable to receive proper treatment as De la Torre embarked on luxury vacations across the Caribbean and French Riviera.

Federal Investigation Looms

The U.S. Justice Department is now investigating Steward Health Care for potential foreign corruption violations, and a federal grand jury in Boston is looking into the hospital chain’s financial dealings, particularly its executive compensations.

Senator Ed Markey Denounces Steward Health Care’s Actions

Massachusetts Senator Ed Markey condemned the financial mismanagement as a “culmination of a financial tragedy.” He accused De la Torre and his corporate allies of looting hospitals for profit, leaving workers, patients, and communities to suffer. “Dr. de la Torre is using his blood-soaked gains to hide behind corporate lawyers instead of responding to the United States Senate’s demand for actions,” Markey remarked.

Markey also drew attention to the impact on nurses and patients, noting that healthcare workers were forced to pay out of pocket for basic bereavement supplies, such as cardboard boxes for grieving parents who lost newborns.

The Senate’s vote signals the start of a potentially landmark legal battle. It casts further scrutiny on Steward Health Care’s troubled financial dealings.