The CEO of hospital operator Steward Healthcare, which filed for bankruptcy protection in May, is resigning after failing to testify before a U.S. Senate committee.
Dr. Ralph de la Torre oversaw a network of about 30 hospitals across the United States, including eight in Florida. The Texas-based company’s troubled recent history has drawn scrutiny from elected officials in the New England state where some of the former hospitals are located.
A spokesperson for Mr. de la Torre said Saturday that he had “amicably parted ways with Mr. Steward on mutually agreeable terms,” adding that he was “a tireless advocate for improving reimbursement rates for disadvantaged patient populations.” will continue to be.”
Sen. Bernie Sanders of Vermont, chairman of the Senate Health, Education, Labor, and Pensions Committee, said earlier this month that Congress must “hold Dr. de la Torre accountable for his greed and the damage he caused to hospitals and patients.” I will ask,” he said. America. “
Mr. Delatorre’s resignation will take effect from October 1st. The Senate on Wednesday approved a resolution charging him with criminal contempt for failing to testify before the committee.
A Senate committee has been investigating Steward’s bankruptcy. Despite being issued a summons, Mr. de la Torre did not appear in court. The resolution refers the matter to federal prosecutors.
Delatorre’s lawyers said the testimony violated their client’s Fifth Amendment rights and that Delatorre would not be “daunted” by the “threat of prosecution.”
Among the assets sold during the bankruptcy were three hospitals in Florida’s Space Coast region sold to Orlando Health. The operations of the other five South Florida properties were transferred to Medical Property Trust, which owns the land and buildings until a buyer is found.
