Steward CEO target of Congress contempt measures

4 weeks ago 11

Presented by Plan B One Step — A Senate committee investigating the bankruptcy of hospital chain Steward Health Care voted on Thursday to hold the company’s CEO in contempt of Congress

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Health Care

The Big Story

Senate panel advances contempt measures against Steward CEO

A committee investigating the bankruptcy of hospital chain Steward Health Care has voted to hold the company’s CEO in contempt of Congress for defying a subpoena and refusing to appear at a hearing.

The Health, Education, Labor and Pensions (HELP) Committee overwhelmingly adopted two contempt resolutions: One for civil enforcement and another that would refer the matter to the U.S. Attorney for the District of Columbia to criminally prosecute Ralph de la Torre for failing to comply with the subpoena.

Both resolutions passed 20-0 and will now advance to the full Senate for a vote.

The bipartisan vote underscores how frustrated lawmakers have become with Ralph de la Torre, who they said has been uncooperative at every possible turn.

“For months, this committee has invited Dr. de la Torre to testify about the financial mismanagement and what occurred at Steward Health Care,” committee chairman Bernie Sanders (I-Vt.) said at Thursday’s hearing. “Time after time, he has arrogantly refused to appear.”

The HELP committee in July issued a subpoena to compel de la Torre to testify at a hearing held last week.

De la Torre told the committee he wouldn’t participate in the hearing while Steward was still in the middle of bankruptcy proceedings and asked for the hearing to be postponed.

But the committee rejected his request and told de la Torre to appear. When he did not, they initiated contempt proceedings.

Steward filed for bankruptcy in May and has been trying to sell all 30 of its hospitals across eight states.

While its hospitals were struggling, to the point where bills weren’t being paid and medical instruments were being repossessed, the owners paid themselves millions in dividends.

According to Sanders, de la Torre personally reaped hundreds of millions of dollars. He bought a mansion in an exclusive Dallas neighborhood, as well as a $40 million yacht and a $15 million luxury fishing boat, according to the senator.

Welcome to The Hill’s Health Care newsletter, we’re Nathaniel Weixel, Joseph Choi and Alejandra O'Connell-Domenech — every week we follow the latest moves on how Washington impacts your health.

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