Steward Healthcare CEO Ralph De La Torre Set To Resign
Steward Healthcare CEO Ralph de la Torre is set to resign from his position on 1st October after failing to testify before a US Senate panel earlier this month.
De la Torre has overseen a network of around 30 hospitals in the US and is under fire for the operational and financial breakdown of the company. However, the controversy extends beyond the US and into Malta with de la Torre being transferred the public-private partnership (PPP) of three Maltese hospitals.
A spokesperson for de la Torre announced on Saturday that he has “amicably separated from Steward on mutually agreeable terms” but will “continue to be a tireless advocate for the improvement of reimbursement rates for the underprivileged patient population”.
In May, Steward filed for bankruptcy and has since garnered widespread criticism from both Republican and Democratic lawmakers amid reports of deficient care and the former heart surgeon’s role in the management of the healthcare conglomerate has since been under scrutiny.
Earlier this month, de la Torre defied a bipartisan subpoena by not showing up to a hearing in the Capitol where he was expected to be grilled by US Senators.
A letter from his lawyers explained that he was unable to testify in the hearing because a federal court order stemming from Steward’s bankruptcy case prevented him from discussing anything amid reorganisation and settlement efforts.
However, this argument was dismissed by the Senate which subsequently voted to hold him in criminal contempt for failing to testify about his role in the collapse of the hospital operator’s finances. This means that his failure to comply with a Senate health committee subpoena will be referred for criminal prosecution to the US Attorney for the District of Columbia.
The CEO’s spokesperson defended his decision, saying he was exercising his Fifth Amendment rights.
Reports of dangerously inadequate healthcare that allegedly led to the death of 15 patients while under the management of Steward were expected to be addressed at the hearing.
The controversial deals between Malta and Vitals Global Healthcare that led to the PPP which was then transferred to Steward were declared fraudulent by a court, affirming suspicions from several national critics.
A magisterial inquiry into the deals has since implicated de la Torre and other Steward executives in corrupt practices and recommended his prosecution.
Former director of VGH Ram Tumuluri accused de la Torre and Maltese officials of corruption last week in a 500-page submission to the Senate committee investigating Steward’s bankruptcy.
He claimed that the CEO conspired with officials to secure a hospital contract, allegedly boasting about bribes and mentioning “brown bags” of cash.
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