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HomeLocalSenate Committee Greenlights Contempt Charges Against Steward Health Care CEO

Senate Committee Greenlights Contempt Charges Against Steward Health Care CEO

 

Senate Committee Moves Forward with Contempt Charges Against Steward Health Care CEO


A Senate committee has given its strong backing to two resolutions aimed at securing testimony from a hospital executive who did not comply with a subpoena last week.

 

The committee has initiated actions against Ralph de la Torre, the CEO of Steward Health Care, following a solid 20-0 vote on both measures, with one senator abstaining. They have opted for a resolution that pursues both civil enforcement and a criminal contempt charge against the executive for his absence before the committee on Sept. 12.

De la Torre did not attend the bipartisan Senate committee session intended to discuss the bankrupt hospital chain’s finances. He communicated through his attorney that he was exercising his Fifth Amendment right, which allows him to avoid self-incrimination.

The Senate Committee on Health, Education, Labor and Pensions approved two actions. One mandates the Senate’s legal team to initiate a federal civil lawsuit to enforce compliance with the subpoena. The second resolution requests the U.S. Attorney for the District of Columbia to take action against De la Torre for not appearing before the committee.

 

In a letter sent to Senate officials, De la Torre’s attorney indicated that the hospital CEO would refrain from testifying under oath, labeling the proceedings as “pseudo-criminal.” The lawyer also mentioned a federal court order that prevented De la Torre from discussing the finances of Steward Health Care during the ongoing bankruptcy case.

 

The hospital chain filed for bankruptcy in May and subsequently shut down two hospitals in Massachusetts while arranging the sale of several others. Senator Bernie Sanders, I-Vermont, alongside others, has raised concerns about De la Torre’s high salary and his purchase of a luxury yacht and fishing boat during a time when the hospital chain has faced financial difficulties.

 

Founded in 2010 when private equity firm Cerberus Capital Management acquired a nonprofit hospital network from the Archdiocese of Boston, Steward Health Care has rapidly grown into a network of more than 30 hospitals and employs over 30,000 individuals.