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The lawsuit, which comes a day before Ralph de la Torre is set to step down as CEO, alleges that the members of the committee are trying to punish him for invoking his Fifth Amendment right.
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Members of the Health, Education, Labor and Pensions Committee looking into the bankruptcy of Texas-based Steward Health Care have adopted two resolutions designed to hold CEO Ralph de la Torre in contempt.
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Ralph de la Torre refused to attend a U.S. Senate hearing looking into his company's bankruptcy after being issued a subpoena.
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Ownership of the five hospitals were transferred to Steward's landlord and are being run by an interim manager. The court also approved Orlando Health's purchase of three Steward hospitals in the Space Coast region.
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Bankrupt Steward Health announces a deal that allows for the transfer of its hospitals in several states to landlord Medical Properties Trust, which would operate the facilities while seeking new owners.
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A bankruptcy judge is scheduled to hold a hearing Sept. 10 on the bid to purchase three Florida hospitals owned by Steward Health, which has filed for Chapter 11.
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Judge Christopher Lopez’s order acknowledges that Orlando Health is a qualified bidder and its $439 million offer is a qualified first bid for the medical centers in Brevard and Indian River counties.
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Medical Properties Trust claims that Steward did not properly follow bankruptcy procedures in agreeing to Orlando Health's bid for three Florida hospitals. Steward says MPT is interfering in the sales process.
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The agreement includes Rockledge Regional Medical Center and Melbourne Regional Medical Center, both in Brevard County, and Sebastian River Medical Center in Indian River County.
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As the fate of the Florida hospitals waits for a second round, Steward says it has a deal to sell its physicians group and reportedly has qualified offers for its Massachusetts hospitals.