Steward Health Care files for Chapter 11 bankruptcy
CBSApr 25
US Senate Subpoenas Steward Health Care CEO
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The Facts
A bipartisan group of US senators have subpoenaed Steward Health Care Chief Executive Officer (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 de la Torre's personal $40M yacht and $15M fishing boat as well as two company jets — while the hospitals owned by Steward went bankrupt.
The Spin
Narrative A
While everyone has a right to defend their record, de la Torre appears to have unethically prioritized corporate profits over patient well-being. After starting Steward his wealth grew dramatically as his company began to crumble. Healthcare leaders are supposed to prioritize healthcare, not secretly extract private wealth as hospitals face bankruptcy, and he de la Torre must be held accountable.
Narrative B
De la Torre's plight is actually a microcosm of the corrupt US health system as a whole. Private equity firms buy up hospitals with the sole purpose of profiting, whether patients receive quality care or not. Firms like Steward should never be allowed to take on massive Wall Street debt, and it's vital to focus on the deeper systemic issues and not de la Torre exclusively.
Narrative C
Steward Health Care is trying the best it can under challenging healthcare market conditions. Already Steward is selling some of its medical centers to other health care systems. The full context of the state of the healthcare sector and Steward's attempts to navigate it must be fairly assessed before coming to any conclusion.