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Bernie Sanders Threatens Contempt Charges Against Steward Health CEO

Bernie Sanders contempt charges/ Steward Health Care CEO subpoena/ de la Torre refuses testimony/ Newslooks/ BOSTON/ Sen. Bernie Sanders announced his intention to pursue contempt charges against Steward Health Care CEO Ralph de la Torre if he does not attend a Senate hearing on Thursday. Sanders demands answers regarding de la Torre’s substantial wealth amid the bankruptcy of Steward Health Care, which operated around 30 hospitals nationwide. De la Torre has refused to testify, citing ongoing reorganization efforts.

FILE – Sen. Bernie Sanders, I-Vt., speaks during a news conference, Jan. 25, 2024, at the Capitol in Washington. Sanders is running for re-election. The 82-year-old, from Vermont, announced Monday, May 6, that he’s seeking his fourth term in the U.S. Senate. (AP Photo/Mariam Zuhaib, File)

Sanders Pushes for Contempt Charges Against CEO: Quick Looks

  • Contempt Threat: Sanders is prepared to pursue contempt charges if Steward CEO Ralph de la Torre skips a Senate hearing.
  • CEO Wealth Amid Bankruptcy: Sanders questions how de la Torre amassed hundreds of millions while Steward Health Care filed for bankruptcy.
  • Hospital Closures: Two Massachusetts hospitals closed due to Steward’s bankruptcy; others were sold after low bids.
  • CEO’s Defense: De la Torre’s lawyers claim a federal order prohibits him from testifying and accuse the Senate committee of a biased agenda.
  • Senate Vote: Contempt charges would require a vote from Sanders’ committee or the full Senate.

Bernie Sanders Threatens Contempt Charges Against Steward Health CEO

Deep Look

Sen. Bernie Sanders announced Wednesday that he is prepared to pursue contempt charges against Steward Health Care CEO Ralph de la Torre if he fails to appear at a Senate hearing on Thursday. De la Torre has been subpoenaed to testify about his financial gains while his company, Steward Health Care, which operated around 30 hospitals across the U.S., filed for bankruptcy earlier this year.

“This is something that is not going to go away,” Sanders told the Associated Press. “We will pursue this doggedly.” The Vermont senator, who chairs the Senate Health, Education, Labor, and Pensions (HELP) Committee, wants de la Torre to explain how he accumulated hundreds of millions of dollars while the company faced financial ruin, leading to the closure and sale of several hospitals, particularly in Massachusetts.

Steward Health Care’s bankruptcy, which was filed in May, has led to the closure of two hospitals in Massachusetts—Carney Hospital in Boston and Nashoba Valley Medical Center in Ayer—after receiving inadequate bids. A federal bankruptcy court has since approved the sale of Steward’s other Massachusetts hospitals. Sanders is demanding accountability, accusing de la Torre of putting personal wealth ahead of the health needs of low- and middle-income communities.

“He has decided not to show up because he doesn’t want to explain to the American people how horrific his greed has become,” Sanders said. “Tell me about your yacht. Tell me about your fishing boat. I want to hear your justification for that.”

De la Torre’s Refusal to Testify

Lawyers representing de la Torre have stated that he will not testify due to a federal court order preventing him from discussing the ongoing reorganization and settlement efforts. They argue that the Senate committee, chaired by Sanders, is trying to turn the hearing into a “pseudo-criminal proceeding” to publicly vilify de la Torre.

“It is not within this Committee’s purview to make predeterminations of alleged criminal misconduct under the auspices of an examination into Steward’s bankruptcy proceedings,” de la Torre’s lawyers said in a letter to Sanders last week.

While de la Torre has left open the possibility of testifying at a later date, Sanders dismissed this offer as “100% a delaying tactic.” He also indicated that his committee has received no sign that de la Torre will change his mind and attend the hearing, where testimony from nurses at two of Steward’s hospitals in Massachusetts is also scheduled.

Sanders’ Criticism of Steward’s Operations

Sanders has voiced strong concerns over Steward Health Care’s operations, emphasizing the negative impact of hospital closures on local communities, particularly those in low-income areas. “You have a guy becoming fabulously wealthy while bankrupting hospitals and denying low-income and middle-income folks the health care they so desperately need,” Sanders said. He also highlighted reports that more than a dozen patients had died in Steward hospitals due to insufficient staffing or medical equipment shortages.

“When a hospital shuts down in a community, especially a low-income community, it’s a disaster,” Sanders added. “Where do people go? Where’s the nearest emergency room?”

Potential Consequences for de la Torre

If de la Torre continues to refuse to testify, the Senate HELP Committee has several options. One possibility is holding him in criminal contempt, which could lead to a trial and potential jail time. Another option is civil contempt, which would result in fines until de la Torre agrees to testify. Both measures would require a Senate vote to proceed.

De la Torre previously declined to testify at a Boston field hearing led by Sen. Edward Markey, a Massachusetts Democrat and member of the Senate HELP Committee, earlier this year. As the Senate weighs its options, Sanders remains committed to holding de la Torre accountable for his role in Steward’s financial downfall and the impact on patient care.

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