Steward Health Care CEO Ralph de la Torre Resigns Amid Bankruptcy Scrutiny and Senate Contempt

Ralph de la Torre, the Chief Executive Officer (CEO) of a hospital operator that filed for bankruptcy protection in May, has announced his departure from the company after being summoned to testify before a U.S. Senate panel. Under de la Torre's leadership, the Texas-based Steward Health Care managed a network of approximately 30 hospitals across the nation. This network has come under scrutiny from elected officials in New England, where several of its hospitals are located.

Resignation Announcement and Subsequent Statements

A spokesperson for de la Torre informed CBS News that he "has amicably separated from Steward on mutually agreeable terms," adding that "will continue to be a tireless advocate for the improvement of reimbursement rates for the underprivileged patient population." Furthermore, the spokesperson emphasized de la Torre's belief that Steward's financial challenges shed light on the ongoing failure in Massachusetts to address its healthcare structure and the inequities within its state system.

Investigations and Hospital Closures

A two-year investigation by CBS News revealed how private equity investors and de la Torre reportedly extracted hundreds of millions of dollars while healthcare workers and patients struggled to access essential supplies. The investigation coincided with the closure of two Massachusetts hospitals in August, leaving approximately 1,200 workers without jobs, as reported by the state. Moreover, Sen. Bernie Sanders of Vermont, chair of the Senate Health, Education, Labor and Pensions Committee, expressed strong intentions to hold de la Torre accountable for the perceived harm caused to hospitals and patients throughout the nation.

Calls for Accountability and Legal Action

Following the announcement of de la Torre's resignation, Democratic Sen. Elizabeth Warren of Massachusetts emphasized the need for authorities to prosecute him for his perceived transgressions and further investigate other potential crimes committed during his tenure as Steward's CEO.

De la Torre's Resignation and Legal Proceedings

In response, Democratic Sen. Ed Markey, chair of the Health, Education, Labor, and Pensions subcommittee on Primary Health and Retirement Security, underscored the importance of holding de la Torre accountable through legal channels. Markey asserted that de la Torre had allegedly diverted substantial funds from essential healthcare services to finance luxurious properties, vacations, and yachts, all while inflicting suffering on patients and leaving healthcare workers and institutions under-resourced. De la Torre's resignation is slated to take effect on October 1.