Steward CEO may face criminal charges after Senate vote

Steward Health Care Chair and CEO Dr. Ralph de la Torre may be hit with criminal charges for contempt of Congress after the Senate unanimously approved a resolution Wednesday to refer the matter to federal prosecutors.

De la Torre rankled lawmakers by defying a subpoena to testify before the Senate Health, Education, Labor and Pensions Committee on his company's severe financial problems Sept. 12. It was the first criminal contempt referral from the Senate since 1971, said Sen. Ed Markey (D-Mass.), who sits on the HELP Committee.

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"Dr. de la Torre is not above the law. If you defy a congressional subpoena, you will be held accountable, no matter who you are or how well-connected you may be," said HELP Committee Chair Bernie Sanders (I-Vt.). The panel recommended the contempt referral to the full Senate last Thursday.

HELP Committee ranking member Dr. Bill Cassidy (R-La.) said, "It's unfortunate that we are here. But if someone shows contempt for the American people by defying a subpoena and refusing to provide answers, that is a contemptible thing. Congress has responsibility to act."

A spokesperson for de la Torre declined to comment.

Steward Health Care declared bankruptcy in May and its ongoing failure has disrupted healthcare markets in several states. De la Torre and other executives also attracted negative attention from elected officials, who have focused on the Dallas-based health system's relationships with private equity investors and its executives' high compensation.

The HELP Committee commenced an investigation into the Steward Health Care bankruptcy in July. "The goal of the HELP Committee throughout this entire process has been to make sure not only that we have a complete understanding of the financial chicanery surrounding Steward Health Care, but to do everything that we can to make sure that such a travesty never occurs again," Sanders said.

De la Torre's lawyers previously said he did not want to answer questions in the Senate out of fear it could jeopardize a settlement of the health system's bankruptcy case. And before the HELP Committee vote on the contempt resolution last week, they asserted de la Torre's Fifth Amendment right against self-incrimination not to testify. The committee countered that the Fifth Amendment does not excuse people from appearing before Congress.