Lawmakers Set to Hold Steward Health Care CEO Ralph de la Torre in Contempt of Congress
Next week, lawmakers will vote on whether to hold Steward Health Care CEO Ralph de la Torre in contempt of Congress after he declined to appear at a Capitol Hill hearing on Thursday despite being subpoenaed to testify. The hearing is part of an ongoing Senate investigation into Steward Health Care, which declared bankruptcy earlier this year. The company, which had owned more than 30 hospitals across eight states, is now struggling to find buyers for its facilities.
Senators Express Outrage at de la Torre’s Absence
Sen. Bill Cassidy of Louisiana, the ranking Republican on the Senate committee investigating Steward, voiced his frustration at de la Torre’s refusal to testify. “If someone shows contempt for the people of the United States by not coming to testify both to potentially clear his name, but also to give them insight, then that is a contemptible thing,” Cassidy told CBS News ahead of the hearing.
Steward Health Care’s Bankruptcy Woes
Steward Health Care, which has faced significant financial challenges, filed for bankruptcy earlier this year. Last week, de la Torre’s attorney informed the Senate committee that his client would not participate in the hearing, citing ongoing bankruptcy proceedings. The committee’s chairman, Sen. Bernie Sanders of Vermont, refused to postpone the hearing, stating that it was essential to address the impact of the company’s downfall on healthcare workers and communities.
During the hearing, lawmakers heard testimonies from healthcare professionals and local officials from areas affected by Steward’s bankruptcy. The company recently shuttered two hospitals in Massachusetts, leaving about 1,200 workers unemployed.
Subpoena and Rare Contempt Proceedings
The committee’s decision to subpoena de la Torre is unusual, with the last such action occurring in the 1980s. Sen. Ed Markey of Massachusetts, a committee member, likened de la Torre to “a fugitive on the run” for defying the subpoena. Markey emphasized that de la Torre’s absence from the hearing could lead to legal consequences as the committee seeks to determine whether he could face criminal or civil penalties.
Department of Justice Investigation
In addition to congressional scrutiny, Steward Health Care is under investigation by the Department of Justice. A federal grand jury in Boston is reportedly examining the compensation, spending, and travel of Steward executives, including de la Torre. The CEO denied any wrongdoing through a spokesperson, who emphasized that de la Torre guaranteed loans and purchased necessary supplies for the company to ensure patients’ needs were met.
Senators United on Accountability
Despite political differences, Sens. Markey and Cassidy are united in their efforts to hold de la Torre accountable and address Steward’s financial mismanagement. Markey accused de la Torre of violating his Hippocratic oath, describing the actions of Steward and its private equity backers as “heartless, cruel, and harmful to the most vulnerable people in our society.”
Cassidy echoed similar concerns, recounting alarming reports from his constituents about severe supply shortages at a Steward hospital in Louisiana. He noted that patients have been turned away, with at least one death occurring due to delays in care.
The bipartisan effort to address Steward Health Care’s financial practices underscores the gravity of the situation. Lawmakers aim to ensure that profits are not prioritized over patient care.