A Senate committee on Thursday voted overwhelmingly to hold Ralph de la Torre, CEO of the failed Steward Health Care System, in civil and criminal contempt for rejecting a rare Congressional subpoena.
In July, the Senate Committee on Health, Education, Labor, and Pensions (HELP) subpoenaed de la Torre to testify about the deterioration and eventual bankruptcy of Steward Health Care, which managed over 30 hospitals across eight states. The poorly managed financial situation led to dire conditions described as providing "third-world medicine," reportedly resulting in the deaths of at least 15 patients and endangering more than 2,000 others.
Senator Bernie Sanders (I-Vt.), chair of the HELP Committee, highlighted that during the system’s collapse, de la Torre received at least $250 million in compensation, purchased a $40 million yacht, and owned a $15 million luxury fishing boat. Meanwhile, Steward Health Care executives had access to two private jets collectively worth $95 million.
Initially agreeing to appear at the September 12 hearing, de la Torre later withdrew, claiming a federal order linked to Steward’s bankruptcy case prohibited him from discussing ongoing reorganization and settlement efforts. The HELP committee rejected this rationale, yet de la Torre did not attend the hearing.
In a 20–0 bipartisan vote, the HELP committee held de la Torre in civil and criminal contempt, with only Senator Rand Paul (R-Ky.) abstaining. For the first time in modern history, the committee issued civil and criminal contempt resolutions. These charges now move to the full Senate for a vote.
If the Senate upholds the charges, civil enforcement will direct the Senate’s legal counsel to compel de la Torre’s testimony through a federal civil suit. The criminal contempt charge would refer the case to the US Attorney for the District of Columbia for potential prosecution. If convicted, de la Torre could face a fine of up to $100,000 and imprisonment of up to 12 months.
A day before the committee vote, de la Torre’s lawyer argued that testifying would violate his Fifth Amendment rights, according to the Boston Globe.
In a statement Thursday, Sanders criticized de la Torre, asserting that wealth and expensive legal teams do not place one 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," he said. For more details on the committee’s actions, read the full report here.