Senate Committee Holds Steward Health Care CEO in Contempt Over Financial Mismanagement Investigation

Capitol dome with American flag, under cloudy sky.

The Senate Health Committee has unanimously voted to hold Steward Health Care CEO Ralph de la Torre in contempt for refusing to testify in a Congressional investigation into alleged financial mismanagement.

At a Glance

Senate committee votes 20-0 for civil and criminal contempt resolutions against Steward Health Care CEO
Investigation focuses on financial decisions leading to bankruptcy of 36 hospitals across 8 states
CEO Ralph de la Torre invoked Fifth Amendment rights, refusing to testify
Bipartisan effort aims to find answers and inform legislative solutions

Senate Committee Takes Unprecedented Action

In a rare and decisive move, the Senate Health, Education, Labor, and Pensions (HELP) Committee has voted unanimously to hold Steward Health Care CEO Dr. Ralph de la Torre in both civil and criminal contempt. This action comes after de la Torre repeatedly refused to appear before the committee to testify about the financial decisions that led to the bankruptcy of 36 hospitals across 8 states.

The committee’s 20-0 vote marks the first time it has recommended contempt charges against a witness. This unprecedented step underscores the gravity of the situation and the committee’s determination to hold corporate leaders accountable for actions that impact American healthcare.

Senate HELP Committee voted 20-0 to hold the CEO of the Dallas-based Steward Health Care in contempt of Congress for failing to testify about the financial dealings of his now bankrupted hospital company. @CBSNewsTexas https://t.co/RMXzQyTsuJ

— Brian New (@BrianNewCBS) September 20, 2024

Bipartisan Effort to Protect Healthcare Interests

Senators Bill Cassidy and Bernie Sanders, in a display of bipartisan cooperation, released a joint statement emphasizing the importance of this investigation. The committee sought Dr. de la Torre’s testimony to understand the financial downfall of Steward Health Care and to inform future legislative action that could prevent similar events from affecting patients and communities.

“The Committee sought testimony about the financial decisions made by Dr. de la Torre as CEO of Steward Health Care. It is essential for our Committee to receive this testimony in order to understand the financial downfall of the company and to inform legislative action to prevent similar events from affecting the patients and communities we represent,” said the senators. “Unfortunately, Dr. de la Torre has repeatedly refused to appear before this committee. If you defy a Congressional subpoena, you will be held accountable. We had no choice but to move forward with both civil enforcement of the subpoena and criminal charges against Dr. de la Torre.”

The committee’s actions send a clear message that no one, regardless of their position or connections, is above the law when it comes to matters of national healthcare importance.

Senate committee votes to hold Steward Health CEO in contempt | Click on the image to read the full story https://t.co/qJ0IhwMp40

— KMBC (@kmbc) September 19, 2024

Severe Consequences of Mismanagement

The investigation has revealed alarming details about the state of Steward Health Care’s hospitals. Testimonies highlighted severe understaffing, lack of resources, and neglect in paying vendors, resulting in patient harm and even deaths. The situation was so dire that, according to a Centers for Medicare and Medicaid Services report, a physician at Glenwood Hospital told a Louisiana state inspector that they were performing “third-world medicine.”

“Nurses were forced to put babies’ remains in cardboard shipping boxes,” she said. “These nurses put their own money together and went to Amazon and bought the bereavement boxes.”

These shocking revelations underscore the human cost of financial mismanagement in healthcare and the urgent need for accountability and reform. The committee’s actions serve not only to address the immediate crisis but also to prevent similar situations from occurring in the future, safeguarding the health and well-being of American citizens.