Cuban-American businessman Ralph de la Torre, CEO of the healthcare company Steward Health Care, will have to testify before the U.S. Senate committee after declaring bankruptcy.
On Thursday, that entity voted to authorize an investigation into the bankruptcy of Steward Health Care and to issue a subpoena for De La Torre to testify, reported Local 10.
The man, from Cuban parents, is the founder and first shareholder of the company, which in 2021 purchased five hospitals in South Florida for 1 billion dollars: Coral Gables Hospital, Florida Medical Center, Hialeah Hospital, North Shore Medical Center, and Palmetto General Hospital.
The citation will require him to appear before the Senate Committee on Health, Education, Labor, and Pensions on September 12, after he had previously declined an invitation to testify in June, made by the committee's chairman, Senator Bernie Sanders, and Republican Bill Cassidy.
De la Torre also refused to attend a hearing in Boston led by Democratic Senator Edward Markey.
In May, Steward announced plans to sell all of its hospitals after declaring bankruptcy.
Sanders criticized the bankruptcy announcement as an example of the dangers of allowing private equity executives to acquire hospitals, burden them with debt, and liquidate their assets.
The senator stated that de la Torre became immensely wealthy by indebting hospitals and selling his land to real estate executives who charged unsustainable rents.
As a result, Steward and its 30 hospitals in eight states declared bankruptcy with a debt of 9 billion dollars.
Steward Health Care stated that it plans to address the subpoena and that the bankruptcy process is being overseen by several regulatory agencies and creditors.
The company is also being investigated in Malta and has raised concerns among political figures in Massachusetts, including Democratic Governor Maura Healey.
On Tuesday, Healey mentioned that the state is evaluating offers for Steward hospitals in Massachusetts.
Markey emphasized that having a hospital entails additional responsibilities and criticized the application of corporate standards to health centers.
Steward, based in Dallas, assured that it does not expect disruptions in the daily operations of its hospitals during the Chapter 11 bankruptcy process.
The company reported in court documents that it began a process to sell its hospital facilities in January.
Steward has eight hospitals in Massachusetts, including St. Elizabeth’s and Carney, both in Boston. The bankruptcy was filed in the Southern District of Texas Bankruptcy Court.
After the bankruptcy declaration, de la Torre stated in a statement that Steward Health Care has done everything possible to operate successfully in a challenging healthcare environment.
A group of Democratic congress members, led by Markey, has sought guarantees for Steward hospital workers to maintain their health and retirement benefits.
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