Members of Mass. congressional delegation call for contempt vote after Steward CEO declines to testify

U.S. Senators Ed Markey and Elizabeth Warren on Thursday pledged action against Steward Health Care’s chief executive for flouting a Congressional subpoena, saying they would move to hold him in contempt of Congress.

Steward CEO Ralph de la Torre has come under fire in recent months for living a lavish lifestyle — complete with private jets, yachts and villas — while his company failed and patients suffered. Steward filed for bankruptcy in May.

“Ralph de La Torre is one more rich guy who thinks the rules don't apply to him,” Warren, a Democrat, told reporters. “He seems to think he's above the law and that he can take whatever he wants and not have to answer for any of the destruction that he leaves behind.”

Markey, also a Democrat, serves on the Senate Committee on Health, Education Labor and Pensions, which in July held bipartisan votes to authorize an investigation into Steward and subpoena its CEO. The subpoena required de la Torre to testify at a Sept. 12 hearing at the U.S. Capitol.

De la Torre, through a lawyer, said Wednesday it would be inappropriate for him to publicly discuss Steward’s ongoing bankruptcy, and he would not participate in the hearing.

“Members of this Committee continue to cast aspersions on Dr. de la Torre and appear determined to turn the hearing into a pseudo-criminal proceeding in which they use the time, not to gather facts, but to convict Dr. de la Torre in the eyes of public opinion,” the attorney, Alexander Merton, wrote in a letter to senators.

Markey, however, accused the CEO of “hiding” to avoid answering for his misdeeds. He directed his comments at de la Torre: “You should be fired from your position as CEO. You should lose your medical degree. And the millions that you made off with [from] Steward should go back to repairing the health care system which you broke.”

Markey said he’s working with his colleagues to plan a Senate committee vote to hold de la Torre in civil contempt, criminal contempt, or both. The full Senate also must vote to bring contempt charges.

“Contempt means that if he continues to refuse to appear before the committee, we will not stop until he answers for what he has done — or is put behind bars,” Markey said.

De la Torre began his career as a cardiac surgeon and rose to leadership roles in the elite world of Boston medicine. He became chief executive of the former Caritas Christi hospital network, and in 2010, engineered a private equity deal to take over those hospitals.

Cerberus Capital Management acquired the hospitals and launched a new company, Steward Health Care — with de la Torre in charge. The stated goal was to protect health care for people and communities in need.

De la Torre later sold the hospital properties to a real estate investment trust and used the proceeds to expand nationally and abroad. Steward grew to a system of more than 30 hospitals in eight states. The company’s headquarters moved from Boston to Dallas.

De la Torre’s personal wealth grew, but his company fell further into distress. Steward failed to pay bills for medical supplies and other basic expenses, and accumulated billions of dollars in debt, ultimately filing for bankruptcy.

Reporting by The Wall Street Journal and The Boston Globe has raised serious questions about de la Torre's use of company funds for charitable donations and personal travel, and about other companies in which he had a financial stake receiving payments and other benefits from Steward. The Globe reported a grand jury is investigating Steward's financial dealings, including executive compensation.

Many who know and have worked with de la Torre have privately said they’re appalled by his apparent pursuit of personal wealth over the stability of his vital hospital network. 

The late businessman and philanthropist Jack Connors told WBUR earlier this year that he felt “beyond disappointment” about helping de la Torre earlier in his career.

Gov. Maura Healey said in a statement Thursday that de la Torre “lived a life of luxury at the expense of workers and patients at his Steward hospitals.

“His refusal to testify before the Senate is shameful, but it follows his pattern of complete disregard for his responsibilities. The people of Massachusetts deserve answers,” Healey said.

A spokesperson for de la Torre did not respond to a request for comment Thursday.

The CEO has been out of the public view as his company goes through bankruptcy, shutting and selling hospitals.

Two of Steward’s Massachusetts hospitals, Nashoba Valley Medical Center in Ayer and Carney Hospital in Dorchester, closed last week.

A bankruptcy court judge on Wednesday approved the sales of five others. Boston Medical Center will take over St. Elizabeth’s Medical Center in Brighton and Good Samaritan Medical Center in Brockton. Lifespan will buy Morton Hospital in Taunton and St. Anne’s Hospital in Fall River. And Lawrence General Hospital will acquire Holy Family Hospital in Methuen and Haverhill.