Sep 5, 2024, 12:00 AM
Sep 5, 2024, 12:00 AM

Hospital Looter Says ‘Nah’ to His Senate Subpoena

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Highlights
  • The Senate HELP Committee voted to subpoena Dr. de la Torre in July due to financial misconduct at Steward Health Care.
  • Steward entered bankruptcy with $8 billion in debt, while de la Torre engaged in extravagant spending and failed to pay vendors.
  • Bipartisan calls for contempt of Congress highlight the need for accountability and transparency in corporate governance.
Story

In July, the Senate Committee on Health, Education, Labor and Pensions voted to subpoena Dr. de la Torre, founder of Steward Health Care, amid revelations of financial misconduct. The hospital chain, which entered bankruptcy with $8 billion in debt, faced scrutiny for the CEO's extravagant spending, including luxury yachts and lavish weddings, while failing to pay vendors. Despite the bankruptcy proceedings, de la Torre's attorney claimed that testifying would violate a federal court order and jeopardize patient care, leading to bipartisan calls for contempt of Congress. The Justice Department is investigating potential violations of the Foreign Corrupt Practices Act related to Steward's financial activities. Massachusetts Senators Warren and Markey have urged the committee to hold de la Torre accountable, highlighting the need for transparency in the face of corporate misconduct. HELP Committee Chairman Bernie Sanders emphasized the importance of understanding how de la Torre profited while the hospitals faced financial ruin. Steward's bankruptcy proceedings have been characterized by a lack of accountability, with Judge Christopher Lopez approving the sale of hospitals despite creditor objections. The company has been accused of using private spies to surveil critics and has faced allegations of illegal kickbacks. The ongoing investigation and the committee's actions reflect a growing concern over corporate governance and the impact of financial mismanagement on public health. As the situation unfolds, the future of Steward Health Care and its hospitals remains uncertain, with potential consequences for patient care and community health. The committee's determination to compel testimony from de la Torre signals a commitment to uncovering the truth behind the financial practices that led to the hospital chain's downfall.

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