A Senate committee has voted to launch an investigation into the bankruptcy of Steward Health Care, a move that includes issuing a subpoena to the company's CEO, Dr. Ralph de la Torre. The subpoena requires de la Torre to testify before the Senate Health, Education, Labor, and Pensions Committee at a hearing scheduled for September 12.
Steward Health Care, which announced its bankruptcy filing in May and plans to sell off all its hospitals, has faced criticism from lawmakers. Senator Bernie Sanders highlighted concerns about private equity involvement in the healthcare sector, accusing de la Torre of profiting excessively by burdening hospitals with debt and selling off assets.
In response to the subpoena, Steward Health Care stated its intention to address the matter and emphasized its active participation in the bankruptcy process, which involves oversight from various regulatory agencies and entities including the U.S. Department of Justice.
The company's bankruptcy proceedings have attracted attention not only at the federal level but also in Massachusetts, where Governor Maura Healey has expressed concerns. Senator Edward Markey emphasized the unique responsibilities that come with owning hospitals, stressing the need for appropriate standards and oversight.
Despite the bankruptcy filing, Steward Health Care has assured that its hospitals will continue normal operations throughout the Chapter 11 process. The company initiated a marketing process for the sale of its hospital facilities earlier this year, with eight hospitals in Massachusetts, including St. Elizabeth’s Hospital and Carney Hospital, being part of the restructuring.
Amidst the ongoing developments, a group of Democratic lawmakers, led by Senator Markey, has sought guarantees regarding the protection of healthcare and retirement benefits for workers at Steward-owned hospitals.
