The CEO of a hospital management company that filed for bankruptcy protection in May will resign after failing to testify before a U.S. Senate committee.
Ralph de la Torre, CEO of Steward Healthcare, has overseen a network of about 30 hospitals across the United States. The Texas-based company’s troubled recent history has drawn scrutiny from elected officials in the New England state where some of its hospitals are located.
A spokesperson for Mr. de la Torre told CBS News in a statement Saturday that he has “amicably parted ways with Mr. Steward on mutually agreeable terms,” adding that he is “committed to improving reimbursement rates for disadvantaged patient populations.” “I will continue to be a tireless advocate for this.”
“Steward’s financial woes shine a much-needed spotlight on Massachusetts’ continued failure to improve its health care structure and the inequities of the state system,” the spokesperson added. I believe it will happen,” he added.
A nearly two-year CBS News investigation reveals how private equity investors and de la Torre amassed hundreds of millions of dollars while health care workers and patients struggled to get the life-saving supplies they needed. It was recorded whether the person was exploited.
The company closed two hospitals in Massachusetts in August, leaving about 1,200 employees without jobs, according to the state.
Sen. Bernie Sanders (Vermont), chairman of the Senate Health, Education, Labor, and Pensions Committee, said earlier this month that Congress must “resolve Dr. de la Torre’s greed and the damage he caused to hospitals and patients. They will be held accountable.” America. “
Following news of his resignation, Massachusetts Democratic Sen. Elizabeth Warren said, “Massachusetts communities are finally free from Ralph’s destructive reign, but he is not yet out of danger. Officials are still He must be charged with contempt and investigated for other possible crimes he may have committed,” he tweeted. He may have committed as CEO of Steward. ”
Democratic Sen. Ed Markey (Massachusetts), chairman of the Health, Education, Labor, and Pensions Subcommittee on Basic Health Care and Retirement Security, also said in a statement Saturday that de la Torre’s resignation alone is not enough. He said the company needed to be held accountable in court. of the law. ”
“While patients suffer and die and workers and hospitals run out of resources, he buys everything from emergency departments, operating rooms and intensive care units to luxury real estate, expensive vacations and yachts,” Markey said. He extorted hundreds of millions of dollars for this.”
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.
Vacant position of Steward Healthcare CEO Dr. Ralph de la Torre. He did not appear at the U.S. Senate committee hearing on September 12, 2024. Kayla Bartkowski/The Boston Globe via Getty Images
