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Senate panel votes 20–0 for holding CEO of “health care terrorists” in contempt

Ralph de la Torre, founder and chief executive officer of Steward Health Care System LLC, speaks during a summit in New York on Tuesday, Oct. 25, 2016.

Enlarge / Ralph de la Torre, founder and chief executive officer of Steward Health Care System LLC, speaks during a summit in New York on Tuesday, Oct. 25, 2016. (credit: Getty | )

A Senate committee on Thursday voted overwhelmingly to hold the wealthy CEO of a failed hospital chain in civil and criminal contempt for rejecting a rare subpoena from the lawmakers.

In July, the Senate Committee on Health, Education, Labor, and Pensions (HELP) subpoenaed Steward Health Care CEO Ralph de la Torre to testify before the lawmakers on the deterioration and eventual bankruptcy of the system, which included more than 30 hospitals across eight states. The resulting dire conditions in the hospitals, described as providing "third-world medicine," allegedly led to the deaths of at least 15 patients and imperiled more than 2,000 others.

The committee, chaired by Senator Bernie Sanders (I-Vt.), highlighted that amid the system's collapse, de la Torre was paid at least $250 million, bought a $40 million yacht, and owned a $15 million luxury fishing boat. Meanwhile, Steward executives jetted around on two private jets collectively worth $95 million.

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CEO of “health care terrorists” faces contempt charges after Senate no-show

The name placard for Dr. Ralph de la Torre, founder and chief executive officer of Steward Health Care System, in front of an empty seat during a Senate Health, Education, Labor, and Pensions Committee hearing in Washington, DC, on Thursday, September 12, 2024.

Enlarge / The name placard for Dr. Ralph de la Torre, founder and chief executive officer of Steward Health Care System, in front of an empty seat during a Senate Health, Education, Labor, and Pensions Committee hearing in Washington, DC, on Thursday, September 12, 2024. (credit: Getty | Ting Shen)

The CEO of a failed hospital system who was paid hundreds of millions of dollars while patients were allegedly "killed and maimed" in his resource-starved and rotting facilities, was a no-show at a Senate hearing on Thursday—despite a bipartisan subpoena compelling him to appear.

Lawyers for Ralph de la Torre—the Harvard University-trained cardiac surgeon who took over the Steward Health Care System in 2020—told senators in a letter last week that he was unable to testify at the hearing. Despite previously agreeing to the hearing, de la Torre and his lawyers argued that a federal court order stemming from Steward's bankruptcy case, filed in May, prevented him from discussing anything amid reorganization and settlement efforts.

But that argument was found to be without merit by the Senate committee that issued the subpoena in July—the Senate Committee on Health, Education, Labor, and Pensions (HELP), chaired by Bernie Sanders (I-Vt.). In comments to the Associated Press Wednesday, Sanders said there were plenty of topics he could have safely discussed.

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CEO of failing hospital chain got $250M amid patient deaths, layoffs, bankruptcy

Hospital staff and community members held a protest in front of Carney Hospital  in Boston on August 5 as Steward has announced it will close the hospital. "Ralph" refers to Steward's CEO, Ralph de la Torre, who owns a yacht.

Enlarge / Hospital staff and community members held a protest in front of Carney Hospital in Boston on August 5 as Steward has announced it will close the hospital. "Ralph" refers to Steward's CEO, Ralph de la Torre, who owns a yacht. (credit: Getty | Suzanne Kreiter)

As the more than 30 hospitals in the Steward Health Care System scrounged for cash to cover supplies, shuttered pediatric and neonatal units, closed maternity wards, laid off hundreds of health care workers, and put patients in danger, the system paid out at least $250 million to its CEO and his companies, according to a report by The Wall Street Journal.

The newly revealed financial details bring yet more scrutiny to Steward CEO Ralph de la Torre, a Harvard University-trained cardiac surgeon who, in 2020, took over majority ownership of Steward from the private equity firm Cerberus. De la Torre and his companies were reportedly paid at least $250 million since that takeover. In May, Steward, which has hospitals in eight states, filed for Chapter 11 bankruptcy.

Critics—including members of the Senate Committee on Health, Education, Labor, and Pensions (HELP)—allege that de la Torre stripped the system's hospitals of assets, siphoned payments from them, and loaded them with debt, all while reaping huge payouts that made him obscenely wealthy.

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