Steward CEO Dr. Ralph de la Torre leaves bankrupt company
Steward CEO Dr. Ralph de la Torre leaves bankrupt company
    Posted on 09/28/2024
Dr. Ralph de la Torre, CEO of Dallas-based Steward Health Care, who was held in contempt of Congress for refusing to testify about the company's bankruptcy, is leaving the troubled company.A Steward spokesperson confirmed the news with a statement emailed to NewsCenter 5. "While Dr. de la Torre has amicably separated from Steward on mutually agreeable terms, he will continue to be a tireless advocate for the improvement of reimbursement rates for the underprivileged patient population. Dr. de la Torre urges continued focus on this mission and believes Steward’s financial challenges put a much-needed spotlight on Massachusetts’s ongoing failure to fix its healthcare structure and the inequities in its state system," the statement said. Prior to founding Steward with backing from Cerberus Capital Management, de la Torre was the CEO of Boston-based Caritas Christi Health Care. He was also previously a cardiac surgeon at Beth Israel Deaconess Medical Center. The contempt vote against de la Torre last week was the first time since 1971 that an individual has faced such charges by the Senate, which enables the Department of Justice to take over the case and pursue criminal prosecution. The affirmative vote could lead to fines, criminal prosecution and potential jail time.Earlier this month, de la Torre was absent from a Senate Health, Education, Labor, and Pensions Committee hearing about the bankruptcy of his company, which operated several Massachusetts hospitals.De la Torre was first subpoenaed in July, but he issued repeated statements saying he would not attend the hearing.His attorneys sent a letter to the Senate Health, Education, Labor, and Pensions Committee, invoking the Fifth Amendment for his right not to testify."Dr. de la Torre cannot be permitted to provide sworn testimony at this time, given that the Hearing was seemingly designed as a vehicle to violate Dr. de la Torre’s constitutional rights, including his Fifth Amendment rights," the letter said. "If the Committee had any concern for the hospitals affected by Steward’s bankruptcy proceedings it would, consistent with Dr. de la Torre’s request to postpone the hearing for a more appropriate time, permit the bankruptcy resolution to move forward and focus its actions on tackling legitimate questions in the best interests of Steward patients, hospitals, and communities."Video below: de la Torre held in contempt of CongressMassachusetts Sen. Ed Markey, a member of the committee whose office recently released a report blaming the Steward crisis on "corporate greed," has alleged that the company cared more about profits than patients.His report alleges that hospitals under Steward's management were "gutted" in pursuit of maximum profits, while patients suffered from extended emergency wait times, deteriorating facilities and higher mortality rates.Steward filed for Chapter 11 bankruptcy protection on May 6.Gov. Maura Healey on Friday formally seized St. Elizabeth’s Medical Center in Boston through eminent domain to keep the hospital open. Previously, a bankruptcy judge approved the sale of Steward's six remaining hospitals in Massachusetts. The judge said Steward and the lenders still need to iron out some differences, which will hopefully be done by the end of the month. Carney Hospital and Nashoba Valley Medical Center closed at the end of August after Steward did not find qualified bidders.The future of Norwood Hospital, which was under construction, remains unclear.

Dr. Ralph de la Torre, CEO of Dallas-based Steward Health Care, who was held in contempt of Congress for refusing to testify about the company's bankruptcy, is leaving the troubled company.

A Steward spokesperson confirmed the news with a statement emailed to NewsCenter 5.

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"While Dr. de la Torre has amicably separated from Steward on mutually agreeable terms, he will continue to be a tireless advocate for the improvement of reimbursement rates for the underprivileged patient population. Dr. de la Torre urges continued focus on this mission and believes Steward’s financial challenges put a much-needed spotlight on Massachusetts’s ongoing failure to fix its healthcare structure and the inequities in its state system," the statement said.

Prior to founding Steward with backing from Cerberus Capital Management, de la Torre was the CEO of Boston-based Caritas Christi Health Care. He was also previously a cardiac surgeon at Beth Israel Deaconess Medical Center.

The contempt vote against de la Torre last week was the first time since 1971 that an individual has faced such charges by the Senate, which enables the Department of Justice to take over the case and pursue criminal prosecution. The affirmative vote could lead to fines, criminal prosecution and potential jail time.

Kevin Wolf

Earlier this month, de la Torre was absent from a Senate Health, Education, Labor, and Pensions Committee hearing about the bankruptcy of his company, which operated several Massachusetts hospitals.

De la Torre was first subpoenaed in July, but he issued repeated statements saying he would not attend the hearing.

His attorneys sent a letter to the Senate Health, Education, Labor, and Pensions Committee, invoking the Fifth Amendment for his right not to testify.

"Dr. de la Torre cannot be permitted to provide sworn testimony at this time, given that the Hearing was seemingly designed as a vehicle to violate Dr. de la Torre’s constitutional rights, including his Fifth Amendment rights," the letter said. "If the Committee had any concern for the hospitals affected by Steward’s bankruptcy proceedings it would, consistent with Dr. de la Torre’s request to postpone the hearing for a more appropriate time, permit the bankruptcy resolution to move forward and focus its actions on tackling legitimate questions in the best interests of Steward patients, hospitals, and communities."

Video below: de la Torre held in contempt of Congress

Massachusetts Sen. Ed Markey, a member of the committee whose office recently released a report blaming the Steward crisis on "corporate greed," has alleged that the company cared more about profits than patients.

His report alleges that hospitals under Steward's management were "gutted" in pursuit of maximum profits, while patients suffered from extended emergency wait times, deteriorating facilities and higher mortality rates.

Steward filed for Chapter 11 bankruptcy protection on May 6.

Gov. Maura Healey on Friday formally seized St. Elizabeth’s Medical Center in Boston through eminent domain to keep the hospital open.

Previously, a bankruptcy judge approved the sale of Steward's six remaining hospitals in Massachusetts. The judge said Steward and the lenders still need to iron out some differences, which will hopefully be done by the end of the month.

Carney Hospital and Nashoba Valley Medical Center closed at the end of August after Steward did not find qualified bidders.

The future of Norwood Hospital, which was under construction, remains unclear.
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