Whistleblower Accuses Steward Health Care CEO of Corruption
A whistleblower has come forward with serious allegations against Steward Health Care CEO Ralph de la Torre and other executives, accusing them of conspiring with foreign officials to secure a hospital contract in Malta, according to CBS News. The complaint, submitted to Congress by healthcare executive Ram Tumuluri, alleges that de la Torre suggested using bribes, referred to as “brown bags,” to close transactions with Maltese government officials during a 2017 meeting. Tumuluri claims that de la Torre implied he would engage in bribery to secure the deal.
Congress Reviews Allegations
The whistleblower’s complaint, currently under review by a U.S. Senate committee investigating Steward’s collapse, paints a troubling picture of the company’s international dealings. A spokesperson for de la Torre has categorically denied the accusations, calling them “preposterous,” and insisted that Steward operated lawfully and transparently in Malta.
The allegations come as Steward Health Care faces increased scrutiny. A federal grand jury in Boston is investigating the company’s finances, focusing on executive compensation, travel expenses, and potential wrongdoing. De la Torre has been subpoenaed to testify before Congress, though his legal team has requested to postpone his appearance until after Steward’s bankruptcy proceedings.
Steward Health Care in Crisis
Steward Health Care declared bankruptcy earlier this year and has struggled to sell its portfolio of more than 30 hospitals across the U.S. The company has faced many challenges, including recently closing two Massachusetts facilities, leaving 1,200 workers unemployed. Steward has also been linked to operational failures, including an incident at a Phoenix hospital where patients had to be evacuated due to a failed air conditioning system.
Records obtained by CBS News reveal a troubling pattern of unpaid bills, resulting in shortages of critical supplies at Steward facilities. Despite these financial troubles, reports indicate that Steward’s executives, including de la Torre, benefitted from the company’s resources.
Financial Mismanagement Under Investigation
A Senate review of financial disclosures and bankruptcy filings has raised concerns about whether de la Torre was using company funds to finance a lavish lifestyle. Steward affiliates reportedly owned two corporate jets valued at $95 million, and de la Torre purchased a 190-foot yacht estimated at $40 million during a period of financial difficulty for the company.
Additionally, Steward paid $37 million in “management fees” to CREF, a company in which de la Torre held a significant stake. Steward donated $3 million to a private school in Dallas, where de la Torre’s children attended, sparking further questions about the company’s financial management.
Defying a Congressional Subpoena
Ralph de la Torre’s decision to defy a congressional subpoena and refuse to testify before a Senate committee has drawn bipartisan criticism. Vermont Senator Bernie Sanders labeled de la Torre as a symbol of corporate greed, accusing him of enriching himself while bankrupting hospitals nationwide. Sanders and other lawmakers are pushing to compel de la Torre to testify, stating that his refusal is an affront to congressional authority.
Massachusetts Senators Elizabeth Warren and Ed Markey have echoed these sentiments, calling de la Torre’s refusal “outrageous” and accusing him of using hospitals as a personal piggy bank.
Ongoing Federal Investigation
The whistleblower complaint has drawn the attention of federal prosecutors, with investigations into Steward Health Care for fraud and corruption continuing. Tumuluri’s claims of illegal activities in Malta are part of a broader inquiry into the company’s dealings, with potential criminal charges on the horizon.
As scrutiny intensifies, Steward Health Care and its CEO remain embroiled in a legal and financial quagmire, with growing calls for accountability from Congress and the public.