Members of a Senate committee investigating the Steward Health Care bankruptcy have revealed their intention to pass two resolutions next week in response to Steward CEO Ralph de la Torre’s failure to attend a U.S. Senate hearing despite being subpoenaed. The committee plans to hold de la Torre in contempt, with one resolution focused on civil enforcement and the other for criminal contempt referred to the United States Attorney. If approved, both resolutions will proceed to a full Senate vote.
The first resolution directs the Senate legal counsel to initiate a civil suit compelling de la Torre to testify before the Senate Health, Education, Labor, and Pensions Committee. The criminal contempt resolution aims to involve the U.S. Attorney for the District of Columbia in prosecuting de la Torre for non-compliance with the subpoena.
Vermont U.S. Sen. Bernie Sanders, the chair of the committee, expressed disappointment over de la Torre’s refusal to testify and emphasized the necessity of pursuing both civil and criminal actions. Steward defended de la Torre’s decision, citing ongoing bankruptcy proceedings and a federal court ban on his testimony regarding Steward’s bankruptcy. They stated that de la Torre will not take actions that could obstruct ongoing settlement efforts.
Sanders criticized the practices of de la Torre and Steward, describing the negative impacts of private equity investors acquiring hospitals, burdening them with debt, and depleting their assets. Steward has been in the process of selling several hospitals in Massachusetts, with two hospitals having closed due to inadequate bids. Despite receiving court approval for the sale of other Massachusetts hospitals, Steward has made significant cuts to services in different states.
Ellen MacInnis, a nurse at St. Elizabeth’s Medical Center in Boston, testified at the hearing about instances of preventable harm and deaths under Steward’s management. She recounted a lack of essential supplies leading to risky situations for patients and heartbreaking incidents like nurses using personal funds to purchase bereavement boxes for newborns who passed away. MacInnis highlighted specific cases where the absence of medical devices or shortages in staffing had fatal consequences, underscoring the detrimental effects of Steward’s operational decisions.