Steward Health Care CEO Ralph de la Torre is under intense scrutiny due to a Senate probe investigating claims of financial misconduct at the organization. Senators from both parties agreed on Thursday to begin looking into Steward Health Care, and they even sent out a subpoena for de la Torre to appear before the Senate Committee on Healthcare, Education, Labor, and Pensions on September 12th.
For a considerable amount of time, De la Torre has been under fire for supposedly making money off of patients in Steward’s network of community hospitals. The independent senator from Vermont, Bernie Sanders, called de la Torre “the poster child” for corporate greed in the medical field. Senator Edward Markey, a Democrat from Massachusetts, accused de la Torre of treating communities as expendable and warned that his “day of reckoning is arriving.”
Steward Health Care responded to the subpoena by saying it would discuss the issue with the committee staff. The organization underscored its dedication to openness and its endeavors to function efficiently within a demanding healthcare setting. The corporation filed for bankruptcy reorganization in May and is considering selling all its hospitals.
The Senate’s probe is a component of more extensive initiatives to hold Steward and de la Torre responsible. The corporation is under investigation by federal prosecutors in Boston for fraud claims and breaches of the Foreign Corrupt Practices Act. This comes in the wake of a CBS News investigation that exposed the suspected theft of hundreds of millions of dollars from community hospitals by investor organizations and private equity firms, with dire implications for public health.
Documents reveal that the proprietors of Steward paid themselves millions in profits, and de la Torre purchased a forty-eight-foot yacht for almost $40 million. Additionally, reports show a history of unpaid invoices at Steward hospitals, raising the possibility of essential medical supply shortages. In one Massachusetts example, unpaid debts allegedly led to the repossession of a life-saving medical gadget.
Massachusetts Governor Maura Healey criticized Steward, stating, “They’ve taken money away from these hospitals that provide needed care and they’re using that money to line their own pockets. I’m disgusted. It’s selfish. It’s greed.”
After more investigation, it was discovered that Steward’s choice to sell off the property and buildings of a significant San Antonio hospital could have had a role in the hospital’s closing. On the other hand, Steward has stated that it has made substantial investments in its hospitals and prioritizes patient care. It also disputes any misconduct.
A court-appointed monitor’s most recent assessment revealed staffing issues, malfunctioning elevators, and medical equipment flaws throughout the Steward facilities. Still, it also concluded that there was no immediate threat to patient safety.
Senators Markey and Pramila Jayapal of Washington have submitted a measure to regulate the financial practices of private equity companies in the healthcare industry in addition to the Senate probe. The Massachusetts state senate recently enacted legislation along similar lines.
According to Senator Markey, the Steward scenario is a “symptom” of a healthcare system that puts corporate profits ahead of human safety. He advocated for long-term laws to shield communities, healthcare professionals, and patients from financial exploitation.
