Sep 28, 2024, 9:04 PM
Sep 28, 2024, 8:16 PM

CEO of bankrupt hospital operator steps down amid Senate scrutiny

Provocative
Highlights
  • Ralph de la Torre will resign as CEO of Steward Health Care after failing to testify before a Senate panel.
  • The Senate has been investigating the company's bankruptcy and its effects on hospitals and patients.
  • De la Torre's resignation follows a resolution to hold him in criminal contempt, highlighting the scrutiny faced by the company.
Story

Ralph de la Torre, the CEO of Steward Health Care, is set to resign effective October 1 after failing to comply with a subpoena to testify before a U.S. Senate panel investigating the company's bankruptcy. Steward Health Care, which operates around 30 hospitals across the country, filed for bankruptcy protection in May, raising concerns among lawmakers, particularly in New England where several of its facilities are located. The Senate Health, Education, Labor and Pensions Committee, chaired by Senator Bernie Sanders, has been scrutinizing the company's financial practices and the impact on patient care. De la Torre's failure to appear before the committee led to a resolution being passed to hold him in criminal contempt, which has now been referred to a federal prosecutor. Despite his resignation, a spokesperson indicated that de la Torre will continue advocating for better reimbursement rates for underprivileged patients, suggesting a commitment to healthcare issues even after his departure from the company.

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