Steward Health Care CEO Resigns Amid Bankruptcy and Scrutiny
Ralph de la Torre, CEO of Steward Health Care, has resigned from his position effective October 1st. This comes after months of scrutiny surrounding the company's bankruptcy filing in May and de la Torre's refusal to testify before a U.S. Senate panel investigating the matter.
Steward Health Care, which operates a network of 30 hospitals across the country, has faced criticism for its troubled financial history, particularly in New England where many of its hospitals are located. A CBS News investigation revealed that de la Torre and private equity investors extracted hundreds of millions of dollars from the company while healthcare workers and patients struggled with inadequate resources.
Following the news of de la Torre's resignation, several senators expressed their dissatisfaction and called for further action. Senator Bernie Sanders of Vermont stated that Congress will hold de la Torre accountable for his actions, while Senator Elizabeth Warren of Massachusetts demanded his prosecution for contempt and investigation for potential criminal activity. Senator Ed Markey of Massachusetts also emphasized the need for legal accountability, highlighting de la Torre's alleged extraction of funds for personal luxury while patients and hospitals suffered.
The Senate panel investigating Steward's bankruptcy has referred the matter to a federal prosecutor due to de la Torre's failure to appear despite a subpoena. Additionally, a whistleblower has come forward alleging that de la Torre and other executives conspired with foreign officials to secure a hospital contract abroad.
With de la Torre's resignation, the future of Steward Health Care remains uncertain. However, the ongoing investigations and calls for accountability suggest that the company's actions will continue to be scrutinized.