The Senate unanimously passed a resolution to hold Ralph de la Torre, the CEO of Steward Health Care, in criminal contempt of Congress for failing to appear at a hearing where he was subpoenaed to testify earlier in the month. The resolution refers the matter to the Department of Justice for prosecution and marks the first time since 1971 that the Senate has held someone in criminal contempt. Senators Bernie Sanders and Ed Markey criticized de la Torre and his corporate enablers for allegedly looting hospitals for personal profit, resulting in negative impacts on workers, patients, and communities across the country.
Before declaring bankruptcy earlier this year, Steward Health Care owned more than 30 hospitals in eight states. The company’s financial troubles led to the closure of two hospitals in Massachusetts, leaving around 1,200 workers unemployed. While the hospitals struggled, de la Torre was accused of extravagant spending, including purchasing a $40 million yacht and a $7 million Texas horse ranch, as well as maintaining two corporate jets valued at $95 million. Senators had been trying to get de la Torre to publicly answer questions about his management of the company, but he had failed to appear at the hearing and sought to postpone his testimony citing ongoing bankruptcy proceedings.
In response to the contempt resolution, de la Torre’s attorney wrote a letter claiming that lawmakers were attempting to frame his client as a criminal scapegoat for systemic failures in Massachusetts’ healthcare system. Additionally, the Department of Justice has opened a separate criminal probe into Steward Health Care, focusing on the compensation, spending, and travel of the company’s top executives, including de la Torre. Through a spokesperson, de la Torre has denied any wrongdoing and stated that he did everything in his power to help Steward Health Care overcome industry challenges, including personally purchasing equipment and supplies for patients.
The Senate’s contempt resolution against Ralph de la Torre comes in the midst of ongoing investigations into Steward Health Care and its executives. The company’s financial troubles and alleged mismanagement have raised concerns about the impact on employees, patients, and communities. De la Torre’s extravagant spending habits have been scrutinized, contrasting with the struggles faced by the company’s hospitals. Despite the denial of any wrongdoing by de la Torre and assertions of acting in the company’s best interests, the criminal contempt referral and ongoing DOJ probe suggest a deeper examination of Steward’s operations and leadership is underway.
It is reported that Steward Health Care faced financial challenges that led to the closure of hospitals and job losses in Massachusetts. Critics accused de la Torre and his corporate enablers of prioritizing personal profit over the well-being of workers, patients, and communities served by the company’s hospitals. The Senate’s unanimous passage of the contempt resolution reflects a rare and significant move in holding a corporate executive accountable for failing to comply with a congressional subpoena. The ongoing investigations and legal actions suggest a turbulent period for Steward Health Care and its CEO, with potential repercussions for the company, its employees, and the healthcare industry more broadly.
