Steward Well being CEO refuses to testify regardless of Senate panel subpoena

The CEO of Steward Well being Care advised a Senate panel he gained’t testify at a listening to subsequent week as a part of an investigation into the corporate’s chapter, in defiance of a subpoena.  

In a letter to the Senate Well being Committee despatched Wednesday, attorneys for Ralph de la Torre stated it could be inappropriate for him to testify on issues associated to Steward’s bankruptcy whereas these proceedings are ongoing. They requested for a postponement till the proceedings are resolved. 

Steward filed for chapter in Could and has been attempting to promote all 30 of its hospitals throughout eight states. A federal chapter decide on Wednesday cleared the way in which for the corporate to promote 5 hospitals in Massachusetts. 

The letter additional accused members of the committee of attempting to “flip the listening to right into a pseudo-criminal continuing wherein they use the time, to not collect information, however to convict Dr. de la Torre within the eyes of public opinion.” 

“It isn’t inside this Committee’s purview to make predeterminations of alleged legal misconduct underneath the auspices of an examination into Steward’s chapter proceedings,” the letter acknowledged.  

The committee in July issued a subpoena to compel de la Torre to testify concerning the failure of Steward Well being Care. The committee voted on a powerful bipartisan foundation 16-4 to authorize the subpoena, the primary in its historical past.

De la Torre for years has confronted accusations that he has personally profited whereas Steward’s hospitals throughout the nation have been failing financially, however he has to this point averted any public response. He declined an earlier alternative to testify, lawmakers stated, and provided no counter date or alternate firm official. 

Final month, on the identical day Steward introduced it could shut two Massachusetts hospitals that it couldn’t discover patrons for, de la Torre was attending Olympic equestrian occasions in Paris. 

Steward took over a failing hospital system run by the Archdiocese of Boston in 2010, and backed by non-public fairness firm Cerberus Capital Administration, transformed it into for-profit establishments earlier than shopping for up hospitals throughout the nation.  

Whereas the hospitals have been struggling, to the purpose the place payments weren’t being paid and medical devices have been being repossessed, the homeowners paid themselves tens of millions in dividends.  

In keeping with the committee, de la Torre owns a 190-foot, $40 million yacht; a $15 million sportfishing boat, in addition to a mansion in Dallas. De la Torre additionally had a majority stake in a Steward affiliate that owned two company jets that committee chairman Sen. Bernie Sanders (I-Vt.) valued at $95 million. 

“I’m disenchanted, however not stunned, that Dr. Ralph de la Torre, the CEO of Steward Well being Care, who has made a whole lot of tens of millions of {dollars} ripping off sufferers and well being care suppliers, is refusing to testify within the HELP Committee in defiance of a subpoena,” Sanders stated in a press release. 

Sanders and committee Democrats have characterised Steward’s failure for instance of what occurs when non-public fairness companies get entangled in well being care.   

Sanders stated he’s working with members of the committee “to find out the most effective path ahead. However let me be clear: We won’t settle for this postponement. This committee intends to maneuver ahead aggressively to compel Dr. de la Torre to testify to the gross mismanagement of Steward Well being Care.” 

In a separate joint assertion, Massachusetts Sens. Elizabeth Warren (D) and Edward Markey (D) additionally condemned de la Torre’s refusal to testify. 

“He owes the general public and Congress solutions for his appalling greed — and De la Torre have to be held in contempt if he fails to seem earlier than the Committee,” the Massachusetts Democrats stated.