Next week, US senators are expected to vote on whether to hold Steward Health Care CEO Ralph de la Torre in contempt of Congress following his failure to attend a Capitol Hill hearing on Thursday, despite being subpoenaed to testify.
The Senate Health, Education, Labor and Pensions (HELP) Committee, led by Sen. Bernie Sanders (I-Vt.) and Sen. Bill Cassidy (R-La.), is investigating the financial mismanagement of Steward, a company that declared bankruptcy earlier this year after owning over 30 hospitals across eight states.
Ralph de la Torre’s absence from the hearing, which addressed the impact of Steward’s bankruptcy on hospitals, workers, and communities, has intensified scrutiny.
“[Refusing to testify] shows contempt for the people of the United States,” said Sen. Cassidy.
De la Torre’s lawyer had previously requested that the hearing be postponed until Steward’s bankruptcy proceedings were resolved, but that request was denied by the committee.
During the hearing, lawmakers heard testimony from healthcare workers and local officials affected by Steward’s bankruptcy. Witnesses detailed alarming conditions at hospitals under Steward’s management, including severe understaffing, supply shortages, and critical patient care failures. In Massachusetts, for instance, two hospitals were recently closed, leaving about 1,200 workers without jobs.
De la Torre has been accused of benefiting financially while hospitals under Steward’s management struggled. According to CBS News, private equity investors and de la Torre are alleged to have extracted hundreds of millions of dollars from Steward’s operations. A federal grand jury is also reportedly investigating the company’s executives, including de la Torre, for their compensation and spending practices.
If the Senate committee votes to hold de la Torre in contempt, two resolutions will be considered. One would seek civil enforcement to compel de la Torre to testify, while the other would refer the case for criminal prosecution. Contempt of Congress could lead to fines or imprisonment.
Despite these legal developments, de la Torre has denied any wrongdoing through a spokesperson, asserting that he made personal sacrifices to support Steward and protect patient care during challenging times. His team also contends that it would be inappropriate for him to testify during ongoing bankruptcy negotiations aimed at keeping the company’s remaining hospitals operational.
The Associated Press, CBS News, the Hill contributed to this report.
