BOSTON (WHDH) – Several Massachusetts lawmakers joined labor leaders in slamming the CEO of Steward Health Care on Wednesday after he refused to comply with a subpoena to testify before Congress about the company’s business dealings.
“You can’t hide in your mansion in Texas,” Sen. Ed Markey, who was gathered with colleagues at a news conference in Boston, told CEO Ralph de la Torre.
“They can’t hide behind corporate lawyers,” Markey said. “They’re going to be held accountable by the United States Senate.”
Steward has been the subject of intense criticism and concern in recent months, both before and after it declared bankruptcy and moved to sell its Massachusetts hospital portfolio.
Markey, who co-chairs the Senate Health, Education, Labor and Pensions Subcommittee on Primary Health and Retirement Security with Vermont Sen. Bernie Sanders, has jointly called for de la Torre to testify at a committee hearing.
Despite being subpoenaed, Delatore’s lawyers told senators he would not testify, saying a federal court order bars him from saying anything about Steward’s restructuring and settlement process, The Associated Press reported.
Markey said Thursday he hopes the Senate will vote to hold Dela Torre accountable.
“Ralph de la Torre has shown contempt for our health care system, and now the United States Senate must bring contempt charges against Ralph de la Torre,” he said.
Steward’s troubles have led to the closure of Kearney Hospital in Dorchester and Nashoba Valley Medical Center in Ayer.
The judge overseeing Steward’s bankruptcy case recently approved the sale of the company’s six other facilities in Massachusetts for $340 million.
De la Torre has continued to lead Steward through its bankruptcy proceedings, but Senator Elizabeth Warren said that should change.
“His failure to comply with the subpoena should be grounds for his removal,” Warren said.
Markey and Warren have introduced a bill called the Corporate Crimes Against Health Care Act, which proposes prison time for corporate executives who loot hospitals and nursing homes for their own personal gain when mismanagement results in the death of a patient.
Warren spoke about the bill on Thursday.
“It is essential that we enact legislation to protect our health care system from these robberies,” she said.
Rep. Lori Trahan also attended Thursday’s news conference with Markey and Warren.
Delatore’s summons called for him to appear before lawmakers on September 12.
Senators have multiple avenues to pursue contempt charges against De La Torre following reports that he will not testify.
The criminal contempt charge could ultimately lead to prison time. The civil contempt charge could result in fines for De la Torre, according to the Associated Press report. Both options would need to be approved by a Senate vote before they can take effect.
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