Steward CEO stands in contempt of Congress, Senate committee resolves

A subpoena issued by the U.S. Senate is not an optional request for an appearance, no matter how much money a person may possess, according to senators looking for testimony from Steward Health Care’s CEO.

The Committee on Health, Education, Labor, and Pensions, in a bipartisan vote held on Thursday, passed a pair of resolutions aimed at holding Dr. Ralph de la Torre’s feet to the fire for skipping out on a hearing over what brought Steward Health Care to its untimely end.

De la Torre may think that his wealth — an ill-gained fortune, lawmakers say — protects him from the consequences of ignoring Congress’ summons, but in the end his decision to skip out on a recent hearing is a slap in the face to both the Senate and the people represented there, according to the Bay State’s junior senator.

“The American people deserve to hear directly from Dr. de la Torre about how this disaster unfolded. But Dr. de la Torre has made clear – through his corporate attorneys – that he feels no accountability to the patients who died, the workers fired, or the communities left behind. Dr. de la Torre may try to shield himself from hearing from the people in Massachusetts that he hurt, but I hear from them. I am with them. They are angry, and I am angry for them,” U.S. Sen. Ed Markey said.

The resolutions direct the Senate Legal Counsel to sue de la Torre in civil court to compel his testimony and authorizes the Senate President to seek criminal charges against the doctor over his failure to appear before the committee on September 12. Either would require the approval of the full senate to move forward.

“Today, with a unanimous vote, we are making clear to Dr. de la Torre, the Steward Board of Directors and senior leadership, and other CEOs, private equity investors, and corporate executives who treat the health care system like their piggy bank: your millions do not shield you from accountability to a legal order issued by the United States Senate,” Markey said.

Through an emailed letter sent by his attorneys, de la Torre told the committee just this week that he can’t testify as to Steward’s circumstances while the company’s bankruptcy proceedings continue.

“Dr. de la Torre lacks the authority to speak on behalf of Steward with respect to the ongoing bankruptcy proceedings and he is prohibited by a federal court order from doing so,” they wrote.

Besides which, they say, de la Torre isn’t inclined to appear, after the committee refused to reschedule the hearing, his lawyers say. This, the doctor’s lawyers say, “substantiated our concern that the true purpose of the hearing was not to gather facts within the Committee’s constitutional and congressional remit, but instead a pseudo-criminal proceeding with the goal of convicting Dr. de la Torre in a court of public opinion.”

De la Torre said giving testimony would violate his rights, including his right to avoid self-incrimination.

“Dr. de la Torre cannot be permitted to provide sworn testimony at this time, given that the hearing was seemingly designed as a vehicle to violate Dr. de la Torre’s constitutional rights, including his Fifth Amendment rights. The U.S. Constitution affords Dr. de la Torre inalienable rights against being compelled by the government to provide sworn testimony that is specifically (yet baselessly) sought to frame Dr. de la Torre as a criminal scapegoat for the systemic failures in Massachusetts’ health care system,” the CEO’s attorneys wrote.

De la Torre’s attorneys did not return a request for comment for this story.

According to Vermont’s Sen. Bernie Sanders, the committee’s chair, de la Torre didn’t have the option to invoke the Fifth Amendment by email.

“If you defy a Congressional subpoena you will be held accountable, no matter who you are or how well connected you may be,” Sanders said.

Republican Sen. Bill Cassidy, of Louisiana, said testimony from de la Torre is “essential” if lawmakers want to understand how Steward went under.

“This is what our bipartisan work has been about: answers for constituents, to inform legislative solutions,” Cassidy said.

Steward declared bankruptcy in May, after it came to light the company was staring down $9 billion in debt obligations. As part of the Chapter 11 proceedings, Steward elected to sell its hospital network, including half-a-dozen facilities in Massachusetts.

While some of the hospitals have struggled to make rent or keep rented equipment, according to lawmakers de la Torre made hundreds of millions in profits. Senators say the doctor knew what he was doing.

“As a physician and as the CEO of Steward from its founding, there is no one who understood the potential consequences of Steward’s failures more than Dr. Ralph de la Torre. Dr. de la Torre led Steward when it sold out hospital real estate to Medical Properties Trust and allowed Cerberus to extract over $800 million in profit,” Markey said.

NO SHW: Dr. Ralph de la Torre. (Herald file photo)

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