US Senate Subpoenas Steward Health Care CEO

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Facts

• A bipartisan group of US senators have subpoenaed Steward Health Care Chief Executive Officer (CEO) Ralph de la Torre, demanding he testify before the Senate Committee on Healthcare, Education, Labor and Pensions on Sept. 12.¹
• At question are how de la Torre and his company were able to accumulate incredible wealth — including de la Torre's personal $40M yacht and $15M fishing boat as well as two company jets — while the hospitals owned by Steward went bankrupt.²
• It was reported earlier this month that the US Attorney's office in Boston, Massachusetts was investigating the company for fraud and violations of the Foreign Corrupt Practices Act.¹
• Before declaring bankruptcy on May 6, de la Torre received $5M in salary and other compensation. Financial firm Cerberus Capital Management, which has ties to Steward, reported $800M in profits in the years ahead of the bankruptcy.³
• This follows a CBS News investigation that found Steward wasn't paying its bills — leading to medical equipment manufacturers repossessing life-saving equipment. The investigation also alleged that Steward sold its land in San Antonio, Texas, possibly resulting in that hospital's closure.¹
• The bipartisan Senate HELP [Health, Education, Labor, and Pensions] Committee voted 16-4 to authorize the hearing, and Steward's situation has prompted some Senate Democrats, including Sen. Bernie Sanders (I-Vt.), to criticize the role of corporations in health care.⁴

Sources: ¹CBS, ²The Hill, ³Fiercehealthcare and ⁴Axios.

Narratives

• Narrative A, as provided by Beckershospitalreview. While everyone has a right to defend their record, de la Torre appears to have unethically prioritized corporate profits over patient well-being. After starting Steward his wealth grew dramatically as his company began to crumble. Healthcare leaders are supposed to prioritize healthcare, not secretly extract private wealth as hospitals face bankruptcy, and he de la Torre must be held accountable.
• Narrative B, as provided by Beaumontenterprise. De la Torre's plight is actually a microcosm of the corrupt US health system as a whole. Private equity firms buy up hospitals with the sole purpose of profiting, whether patients receive quality care or not. Firms like Steward should never be allowed to take on massive Wall Street debt, and it's vital to focus on the deeper systemic issues and not de la Torre exclusively.
• Narrative C, as provided by Bloomberg. Steward Health Care is trying the best it can under challenging healthcare market conditions. Already Steward is selling some of its medical centers to other health care systems. The full context of the state of the healthcare sector and Steward's attempts to navigate it must be fairly assessed before coming to any conclusion.

Predictions