CBS News

Steward Health Care files for Chapter 11 bankruptcy

A bipartisan group of US senators have subpoenaed Steward Health Care CEO Ralph de la Torre, demanding he testify before the Senate Committee on Healthcare, Education, Labor and Pensions on Sept. 12.

At question are how de la Torre and his company were able to accumulate incredible wealth — including a de la Torre's personal $40M yach and $15M fishing boat as well as two company jets — while the hospitals owned by Steward went bankrupt.

The Hill

It was reported earlier this month that the US Attorney's office in Boston, Mass., were investigating the company for fraud and violations of the Foreign Corrupt Practices Act.

Before declaring bankruptcy on May 6, de la Torre received $5M in salary and other compensation. Financial firm Cerberus Capital Management, which has ties to Steward, reported $800M in profits in the years ahead of the bankruptcy.

Fierce Healthcare

This follows a CBS News investigation that found Steward wasn't paying its bills, which led to medical equipment manufacturers repossessing life-saving equipment from patients; and that Steward sold its land in San Antonio, Texas, possibly resulting in that hospital's closure.

The bipartisan Senate HELP Committee voted 16-4 to authorize the hearing, and Steward's situation has prompted some Senate Democrats, including Sen. Bernie Sanders (I-Vt.), to criticize the role of private equity in health care.

US Senate Subpoenas Steward Health Care CEO

US Senate Subpoenas Steward Health Care CEO

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US Senate Subpoenas Steward Health Care CEO

US Senate Subpoenas Steward Health Care CEO

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