Contempt of Congress! Steward Health Care CEO Dr. Ralph de la Torre leaves troubled company after facing charges – What’s next for the healthcare giant?

NEEDHAM, Mass. – Dr. Ralph de la Torre, the former CEO of Steward Health Care based in Dallas, has parted ways with the company after being held in contempt of Congress for refusing to testify regarding the company’s bankruptcy. A spokesperson for Steward confirmed the departure, stating that de la Torre will continue advocating for improved reimbursement rates for underprivileged patients despite leaving the company. This development comes amid financial challenges faced by Steward, shedding light on ongoing healthcare system issues in Massachusetts.

Prior to co-founding Steward with support from Cerberus Capital Management, de la Torre served as the CEO of Caritas Christi Health Care in Boston and worked as a cardiac surgeon at Beth Israel Deaconess Medical Center. The contempt charge against de la Torre marked the first instance since 1971 of an individual facing such accusations by the Senate, potentially leading to fines, prosecution, and jail time.

De la Torre’s absence from a recent Senate committee hearing discussing Steward Health Care’s bankruptcy prompted legal actions, including invoking the Fifth Amendment to avoid testifying. Senator Ed Markey’s office released a report attributing Steward’s crisis to corporate greed, alleging neglect of patient welfare in pursuit of profits. The report highlighted issues such as extended wait times, declining facility conditions, and increased mortality rates in hospitals under Steward’s management.

Following a Chapter 11 bankruptcy filing in May, Steward’s financial struggles led to the closure of Carney Hospital and Nashoba Valley Medical Center due to a lack of qualified bidders. Governor Maura Healey took steps to seize St. Elizabeth’s Medical Center through eminent domain to ensure continued operation. Despite the approval of the sale of Steward’s remaining hospitals in Massachusetts, ongoing negotiations between the company and lenders pose challenges, leaving the future of Norwood Hospital uncertain. As the healthcare sector navigates these disruptions and transitions, the focus remains on addressing systemic inequities and improving patient care.