WASHINGTON (Reuters) – Ralph de la Torre of troubled Steward Healthcare will be held in criminal contempt in the Senate next week for refusing to testify about cost-cutting decisions, and the company’s top executive will be held in criminal contempt. The company announced Saturday that he will step down as CEO next week. The group’s 31 hospitals before filing for bankruptcy.
The Dallas-based company said in a statement that Delatorre will no longer serve as CEO and chairman, effective Oct. 1, as part of an agreement in principle reached earlier this month.
A spokesperson for Mr. de la Torre said the former cardiac surgeon had “parted amicably with Mr. Steward on mutually agreeable terms,” adding that he was “a tireless advocate for improving reimbursement rates for disadvantaged patient populations.” “I will continue to be that,” he admitted.
The Senate on Wednesday held Delatorre in contempt of Congress after he refused to appear at a Sept. 12 hearing of the Senate Health, Education, Labor and Pensions Committee investigating Steward’s financial affairs. The indictment was unanimously approved. Mr. Delatorre had been subpoenaed to appear at the hearing.
Steward, the nation’s largest private hospital network, filed for bankruptcy in May seeking to sell all its hospitals and address $9 billion in debt. Since the filing, the company has sold several hospitals.
“Dr. de la Torre urges us to remain focused on this mission, and Steward’s financial woes are a much-needed reminder of Massachusetts’ continued failure to improve its health care structure and the inequities in our state system. We believe this will shine a spotlight that has been on the spotlight for many years,” the spokesperson said.
Many of the hospitals affected by Steward’s financial woes were based in Massachusetts.
(Reporting by Lucia Mutikani; Editing by Paul Simao)
