Steward Health CEO Who Refused to Testify Before US Senate to Step Down, Reports Reuters

Ralph de la Torre Stepping Down as CEO of Steward Health Care Amid Controversy

Ralph de la Torre will resign as CEO of Steward Health Care next week, following a verdict from the U.S. Senate that held him in criminal contempt for his refusal to testify regarding cost-cutting measures at the healthcare group’s 31 hospitals prior to its bankruptcy filing.

In a statement, the Dallas-based company announced that de la Torre will officially step down as CEO and chairman on October 1, as part of an agreement reached earlier this month.

A representative for de la Torre confirmed that he has departed from Steward on mutually beneficial terms and that he intends to continue advocating for better reimbursement rates for underprivileged patients.

The Senate unanimously decided to hold de la Torre in criminal contempt after he declined to appear at a hearing on September 12 conducted by the Senate Committee on Health, Education, Labor and Pensions, which was investigating Steward’s financial issues. De la Torre had received a subpoena to testify at the hearing.

Steward, the largest privately owned hospital network in the United States, filed for bankruptcy in May and is working to sell all its hospitals while tackling a substantial debt of $9 billion. Since the bankruptcy declaration, the company has successfully sold several hospitals.

De la Torre’s spokesperson stated that he encourages ongoing focus on the need for reform and believes Steward’s financial struggles highlight Massachusetts’ persistent challenges in addressing healthcare structure and inequities within its system.

Many hospitals impacted by Steward’s financial difficulties are located in Massachusetts.