Senate committee finds Steward Health CEO in contempt of court

A U.S. Senate committee voted Thursday to charge Steward Health Care CEO Ralph de la Torre with civil and criminal contempt of court after he refused to testify publicly about his company’s bankruptcy. The two votes were unanimous, 20 to 0, with only one member abstaining.

The resolutions from the Senate Health, Education, Labor and Pensions Committee will now go to the full Senate. If the full Senate approves them, de la Torre could face criminal charges and even prison time for failing to comply with a subpoena to testify.

Independent Senator Bernie Sanders of Vermont, who chairs the HELP committee, said de la Torre left senators no choice but to take this rare and bipartisan action.

“For months, this committee has called on Dr. de la Torre to testify today about the financial mismanagement and events at Steward Health Care. Time and time again, he has arrogantly refused to appear,” Sanders said.

“Even though he can afford some of the most expensive lawyers in America, no, Dr. de la Torre is not above the law,” Sanders added.

De la Torre began his career as a surgeon and has led Steward since its founding in Massachusetts – with private equity funding – 14 years ago. The company began with a promise to save struggling hospitals and provide high-quality care at a lower cost. Until recently, it operated more than 30 hospitals in eight states across the country.

Over the years, de la Torre’s personal wealth grew, even as his hospitals struggled to pay for basic care and, at times, to ensure patient safety.

De la Torre has come under fire from elected officials and Steward staff for maintaining a lavish lifestyle that included a luxury yacht, use of company-owned private jets and homes around the world while his hospital chain slid into bankruptcy.

In a letter to senators on Wednesday, de la Torre’s lawyer said the CEO was invoking his Fifth Amendment right to remain silent. Attorney Alexander Merton also criticized senators for attempting to convict de la Torre in a court of public opinion.