Senate Investigates Bankruptcy of Hospital Chain: CEO Subpoenaed
July 25, 2024
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2 min
5 Key Takeaways
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1
U.S. Senate Committee investigating Steward Health's bankruptcy
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2
Ralph de la Torre, MD subpoenaed to testify at a public hearing
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3
Allegations of corporate greed and financial mismanagement
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4
Focus on risks to U.S. patients and ill-fated expansion into Malta
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5
Cerberus Capital Management's role in the company's downfall
The U.S. Senate Committee on Health, Education, Labor and Pensions is investigating the bankruptcy of Steward Health, a privately owned hospital network. The committee has issued a subpoena to compel the company's CEO, Ralph de la Torre, MD, to testify at a public hearing. This comes after allegations of excessive corporate greed and financial mismanagement, including the purchase of expensive assets while cutting medical services and causing job losses. The investigation also aims to address risks to U.S. patients and the company's ill-fated expansion into Malta, which is under investigation for possible violations of the U.S. Foreign Corrupt Practices Act.
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