The CEO of hospital operator Steward Health Care, which filed for bankruptcy protection in May, will step down after failing to testify before a U.S. Senate panel.
Dr. Ralph de la Torre had overseen a network of some 30 hospitals around the country, including eight in Florida. The Texas-based company’s troubled recent history has drawn scrutiny from elected officials in New England, where some of its former hospitals are located.
A spokesperson for de la Torre said Saturday that he “has amicably separated from Steward on mutually agreeable terms” and “will continue to be a tireless advocate for the improvement of reimbursement rates for the underprivileged patient population.”
Vermont U.S. Sen. Bernie Sanders, who chairs the Senate Health, Education, Labor and Pensions Committee, said earlier this month that Congress “will hold Dr. de la Torre accountable for his greed and for the damage he has caused to hospitals and patients throughout America.”
De la Torre’s resignation is effective Oct. 1. The Senate approved a resolution on Wednesday that was intended to hold him in criminal contempt for failing to testify before a committee.
The Senate panel has been looking into Steward’s bankruptcy. De la Torre did not appear before it despite being issued a subpoena. The resolution refers the matter to a federal prosecutor.
De la Torre's lawyers said testifying would violate their client's Fifth Amendment rights, and he would not "be intimidated" by the "threat of prosecution."
Among the assets sold during bankruptcy were three hospitals in Florida's Space Coast area to Orlando Health. The operation of five others in South Florida were transferred to Medical Properties Trust, which owned the land and buildings, until buyers are found.
