A Senate committee has authorized an investigation into the bankruptcy of Steward Health Care and issued a subpoena to the company’s CEO, Dr. Ralph de la Torre, to testify before the committee. De la Torre had declined previous invitations to testify at hearings by various senators. Steward Health Care had announced in May that it planned to sell off all its hospitals after filing for bankruptcy protection. Senator Bernie Sanders criticized de la Torre for his role in accumulating debt and selling hospital assets for personal gain, leading to the bankruptcy of Steward and its 30 hospitals across eight states.
Steward Health Care stated that it plans to address the subpoena and emphasized ongoing participation in the bankruptcy process with various governmental agencies. Concerns have been raised about the company’s actions in other states, including Malta. Political figures such as Governor Maura Healey have expressed disapproval of Steward’s bankruptcy and actions. Senator Ed Markey highlighted the additional responsibilities that come with owning hospitals and stressed the need for proper oversight in such situations. Steward has reassured that its hospitals’ operations will continue as usual during the bankruptcy process, which was filed in the U.S. Bankruptcy Court for the Southern District of Texas.
In response to the bankruptcy filing, de la Torre mentioned that Steward Health Care had been operating in a challenging healthcare environment and had made efforts to operate successfully. A group of Democratic members of Congress, led by Senator Markey, are seeking assurances that the health care and retirement benefits of workers at hospitals owned by Steward will be protected. The company has outlined a phased marketing process for the sale of its hospital facilities since late January. Steward’s Massachusetts hospitals, such as St. Elizabeth’s Hospital and Carney Hospital in Boston, are included in the bankruptcy filing. The company has stated its commitment to keeping its hospitals operating smoothly throughout the Chapter 11 process.
Senator Sanders has criticized the actions of de la Torre and Steward Health Care, pointing out the consequences of allowing private equity executives to profit from taking over hospitals and burdening them with debt. Sanders referred to de la Torre’s wealth accumulation through such practices as corporate greed that is prevalent in the for-profit healthcare system. The committee’s decision to investigate the Steward bankruptcy and issue a subpoena to de la Torre underscores the concerns surrounding the company’s financial practices and their impact on the healthcare industry. As the investigation progresses, more details are expected to emerge regarding the circumstances leading to Steward Health Care’s bankruptcy and the potential implications for its employees, patients, and stakeholders.
