The Senate Health, Education, Labor, and Pensions (HELP) Committee is preparing to investigate Steward Health Care and its CEO, Ralph de la Torre, M.D. On Thursday, committee chair Sen. Bernie Sanders (I-Vermont) and ranking member Sen. Bill Cassidy, M.D. (R-Louisiana), announced plans to vote on a probe into the bankrupt for-profit health system and to subpoena its top executive. “We have a number of questions to ask Dr. de la Torre about the bankruptcy of Steward Health Care and the financial arrangements leading up to its insolvency,” the senators stated. “It is time for Dr. de la Torre to answer them before Congress and the American people.”
Cassidy highlighted the “poor financial decisions and gross mismanagement” of Glenwood Regional Medical Center, a Steward hospital in his district, which threatens patient care due to “Steward’s irresponsible business practices.” He emphasized the importance of ensuring residents in the community continue to receive the care they need and uncovering the root of these issues.
Sanders and Sen. Edward Markey (D-Massachusetts), chair of the HELP Subcommittee on Primary Health and Retirement Security, expressed frustration with de la Torre’s repeated refusals to testify. “Time and time again we have invited Dr. de la Torre to come before Congress to testify about the financial mismanagement at Steward that led to one of the largest health care bankruptcies in our nation’s history. And time and time again, he has arrogantly refused,” they said. “Enough is enough. It is time for Dr. de la Torre to get off of his yacht and explain to Congress how much he has gained financially while bankrupting the hospitals he manages.”
Steward filed for bankruptcy on May 6, following months of financial difficulties. The company has faced challenges auctioning off its hospitals and other assets, with repeatedly pushed back deadlines and deal proposals failing under regulatory scrutiny. This process has drawn attention from patients, healthcare professionals, and government leaders concerned about potential service interruptions.
The company’s ties to Cerberus Capital Management and decisions that compromised its financial stability for short-term gains have been criticized by opponents of private equity in healthcare. Cerberus reportedly made an $800 million profit when it exited the company before its bankruptcy. Court documents reveal de la Torre received about $5.2 million in salary, reimbursement, and other compensation before the bankruptcy.
Sen. Sanders and Markey described de la Torre as “Perhaps more than anyone else in America, Dr. Ralph de la Torre, … is the poster child for the type of outrageous corporate greed that is permeating through our for-profit healthcare system,” Last week, CBS News reported that Boston-based federal authorities had opened a criminal investigation into Steward for alleged fraud and violations of the Foreign Corrupt Practices Act, linked to a corruption probe in Malta over a deal for Steward to manage three state-owned hospitals.
The HELP Committee will vote on the investigation and subpoena on July 25.
