A Senate committee has authorized an investigation into Steward Health Care’s bankruptcy and has issued a subpoena for CEO Dr. Ralph de la Torre to testify. De la Torre had previously declined invitations to testify from committee leaders Sen. Bernie Sanders and Sen. Bill Cassidy, as well as at a field hearing chaired by Sen. Edward Markey.
Steward Health Care announced in May that it plans to sell all its hospitals following its bankruptcy filing. Sanders criticized the bankruptcy, highlighting the dangers of private equity in healthcare and accusing de la Torre of profiting at the expense of the hospitals, which are now burdened with $9 billion in debt.
Steward Health Care stated it will address the subpoena and emphasized the transparency of the bankruptcy process, involving oversight from various regulatory agencies and creditors.
Despite the bankruptcy, Steward assures that hospital operations will continue as usual during the Chapter 11 process.
In court filings, Steward revealed it began marketing its hospital facilities for sale in January. The company filed for bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas.
