A whistleblower has come forward to Congress alleging that Steward Health Care CEO Ralph de la Torre and other Steward executives illegally conspired with foreign officials to secure a hospital contract abroad. The whistleblower, Ram Tumuluri, describes a 2017 meeting involving de la Torre where he insinuated he would bribe officials of the Government of Malta. The submission was sent to a U.S. Senate committee investigating the hospital company’s collapse, and the committee is reviewing the complaint. In response, a spokesperson for de la Torre called Tumuluri’s allegations “preposterous” and stated that Steward’s international arm acted lawfully and transparently.
Amidst scrutiny on Steward, which declared bankruptcy earlier this year, a federal grand jury in Boston is examining the compensation, spending, and travel of its top executives, including de la Torre. The whistleblower complaint emerges as de la Torre has asked to postpone testifying on Capitol Hill in response to a subpoena requiring him to appear. The Dallas-based company has been struggling to find buyers for its more than 30 hospitals, with two facilities in Massachusetts closing last week, leaving 1,200 workers jobless. CBS News has reported on Steward’s activities, highlighting how private equity and other investor groups have siphoned hundreds of millions of dollars from community hospitals.
The convening of a grand jury suggests the potential for criminal charges against Steward and its executives, though no charges have been brought. Financial disclosures and bankruptcy filings raise questions about whether de la Torre used company money to fund a lavish lifestyle, including owning two corporate jets worth $95 million and acquiring a $40 million yacht. Payments to other companies where de la Torre held significant stakes, as well as donations to organizations linked to him, have also been scrutinized. De la Torre’s spokesperson stated that he used his stake in Steward and other assets to guarantee loans to the company and personally purchased necessary equipment and supplies for patients.
De la Torre’s attorney wrote to the Senate committee stating that his client would not participate in the hearing, defying a subpoena requiring him to appear. This move triggered bipartisan pushback from members of the committee who were seeking answers regarding the allegations. Steward’s dealings in Malta have drawn the interest of American prosecutors, with Tumuluri’s allegations leading to an investigation into fraud and violations of the Foreign Corrupt Practices Act. Tumuluri alleges that de la Torre and other executives conspired with Maltese officials in a campaign of unlawful coercion to gain control of a hospital contract.
Last year, a judge in Malta canceled the contract won by Tumuluri’s company after allegations of collusion between Steward and government officials. A Maltese magistrate has recommended corruption charges against de la Torre and other Steward executives, but de la Torre’s spokesperson has denied any wrongdoing. Bakaj, the whistleblower’s attorney, stated that Tumuluri offered his assistance and testimony to Maltese authorities, but he was ignored, leading him to approach U.S. authorities. The situation remains under investigation with calls for accountability from both the Department of Justice and Congress.
