A Senate panel has subpoenaed the CEO of Steward Health Care, Dr. Ralph de la Torre, to testify in an investigation into the company’s bankruptcy filing and alleged financial mismanagement. The Senate Health, Education, Labor & Pensions Committee voted to authorize the subpoena, citing concerns that Steward’s leadership engaged in a Ponzi scheme, saddling hospitals with debt and reaping profits while cutting patient care.
The committee alleges that Steward purchased hospitals across the country, loaded them with debt, sold their land, and profited from the sales while allowing the hospitals to go bankrupt. Senators pointed to Dr. de la Torre’s lavish spending, including a $40 million yacht and a private jet, as evidence of the company’s prioritization of profits over patient care.
Steward Health Care filed for bankruptcy in May, citing financial difficulties. The company has faced criticism for its rapid expansion, neglect of existing hospitals, and prioritization of profits over patient care.
The subpoena marks the first time the Senate Health, Education, Labor & Pensions Committee has compelled testimony since 1981. Dr. de la Torre had previously declined invitations to testify before Congress.
Allegations of Financial Mismanagement: The committee alleges that Steward’s leadership engaged in a Ponzi scheme, saddling hospitals with debt and reaping profits while cutting patient care and allowing the hospitals to go broke ³.
Testimony: Dr. de la Torre will be compelled to testify before the Senate Health, Education, Labor, and Pensions Committee at a hearing on September 12 ².
Background: Steward Health Care filed for bankruptcy in May, citing financial difficulties ². The company has faced criticism for its rapid expansion, neglect of existing hospitals, and prioritization of profits over patient care ³.