Dr. Ralph de la Torre, CEO of Dallas-based Steward Health Care, is leaving the bankrupt company. A spokesperson confirmed the news in a statement emailed to NewsCenter 5.
He will cease to serve as CEO and chairman of the board effective Oct. 1. “While Dr.
de la Torre has amicably separated from Steward on mutually agreeable terms, he will continue to be a tireless advocate for the improvement of reimbursement rates for the underprivileged patient population,” the statement read. “Dr. de la Torre urges continued focus on this mission and believes Steward’s financial challenges put a much-needed spotlight on Massachusetts’s ongoing failure to fix its healthcare structure and the inequities in its state system.”
Prior to founding Steward with backing from Cerberus Capital Management, de la Torre was the CEO of Boston-based Caritas Christi Health Care and previously served as a cardiac surgeon at Beth Israel Deaconess Medical Center.
De la Torre recently faced significant legal trouble.
CEO departure amid company bankruptcy
The Senate voted to hold him in contempt for refusing to testify regarding the company’s bankruptcy.
This was the first contempt vote by the Senate against an individual since 1971. The affirmative vote could lead to fines, criminal prosecution, and potential jail time. De la Torre was subpoenaed in July but repeatedly stated he would not attend the hearing.
His attorneys sent a letter to the Senate Health, Education, Labor, and Pensions Committee, invoking his Fifth Amendment rights. Massachusetts Senator Ed Markey, a member of the committee, released a report alleging that Steward cared more about profits than patients. According to the report, hospitals under Steward’s management were “gutted” in pursuit of maximum profits, resulting in extended emergency wait times, deteriorating facilities, and higher mortality rates.
Steward filed for Chapter 11 bankruptcy protection on May 6. Massachusetts Governor Maura Healey has taken steps to keep one of Steward’s six remaining hospitals open through eminent domain. The future of other hospitals, including Norwood Hospital, remains uncertain.
