Steward CEO resigns, sues senators: 6 notes

Steward Health Care Chairman and CEO Ralph de la Torre, MD, has "amicably separated" from the system, effective Oct. 1, a Steward spokesperson confirmed to Becker's

"While Dr. de la Torre has amicably separated from Steward on mutually agreeable terms, he will continue to be a tireless advocate for the improvement of reimbursement rates for the underprivileged patient population," the spokesperson said in a Sept. 28 statement. "Dr. de la Torre urges continued focus on this mission and believes Steward's financial challenges put a much-needed spotlight on Massachusetts' ongoing failure to fix its healthcare structure and the inequities in its state system." 

Six notes:

1. The separation follows a unanimous Senate vote on Sept. 25 to hold Dr. de la Torre in contempt for skipping a Health, Education, Labor and Pensions Committee hearing he was subpoenaed to attend earlier in the month. 

2. In response, Dr. de la Torre sued the HELP Committee and its members on Sept. 30 in federal court, alleging unconstitutional punishment for invoking his Fifth Amendment right to not testify and an "unvarnished and unlawful crusade to deter, punish, and publicly humiliate" him.

"No one can be compelled to testify when they exercise this right under these circumstances," Dr. de la Torre's counsel said in a statement shared with Becker's. "Nor does the Constitution permit Congress to punish and intimidate him, or any other American, for exercising these rights. The Constitution, not the Senate, reigns supreme in this country."

3. Dallas-based Steward, a for-profit health system, sought Chapter 11 protection May 6 and has been working to sell its 31 hospitals. Dr. de la Torre has faced backlash over his lavish vacations and ownership of two yachts while Steward’s hospitals continue to face significant financial challenges. 

4. "Ralph de la Torre's resignation is not enough and must be held accountable in the court of law," Sen. Ed Markey said in a Sept. 28 news release shared with Becker's. "This resignation comes too late for the workers, patients and communities that Mr. de la Torre harmed and abandoned."

5. Massachusetts Gov. Maura Healey said in a Sept. 28 statement to Becker’s that Dr. de la Torre has brought "an unprecedented level of greed and mismanagement to healthcare in Massachusetts, and he could not leave soon enough."

6. On Sept. 4, U.S. Bankruptcy Court Judge Christopher Lopez approved the sale of six Steward Massachusetts hospitals.

Brockton-based Good Samaritan Hospital and St. Elizabeth's Medical Center will go to Boston Medical Center for $140 million. On Sept. 27, Massachusetts seized control of St. Elizabeth’s Medical Center to ensure the hospital remains open and transfers operations to Boston Medical Center. 

Providence, R.I.-based Lifespan will purchase Taunton, Mass.-based Morton Hospital and Fall River, Mass.-based St. Anne's Hospital for $175 million. Lawrence (Mass.) General Hospital will acquire Holy Family Hospital in Methuen, Mass., and Holy Family Hospital in Haverhill, Mass., for $28 million.

Two other Steward hospitals, Boston-based Carney Hospital and Ayer, Mass.-based Nashoba Valley Medical Center, closed on Aug. 31. 

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