The Senate Health, Education, Labor and Pensions Committee voted July 25 to subpoena Dallas-based Steward Health Care CEO Ralph de la Torre, MD, and investigate the bankrupt, for-profit health system.
The decision to investigate the bankruptcy was reached in a favorable 20-1 vote, while the subpoena for Dr. de la Torre was reached by a 16-4 vote, according to a July 25 HELP committee news release shared with Becker's.
This is the first subpoena the HELP committee has issued since 1981.
Steward filed for Chapter 11 bankruptcy on May 11 and is working to auction off its 31-hospitals and physician group, Stewardship Health.
The subpoena orders Dr. de la Torre to testify at a Sept. 12 hearing examining the bankruptcy and its effects on patient care.
Previously, Dr. de la Torre was invited by Sen. Ed Markey to attend an April 3 HELP subcommittee field hearing in Boston examining the effects of private equity in hospital management. Dr. de la Torre did not attend.
Steward plans to address the subpoena with the "appropriate HELP committee staff," according to a July 25 statement shared with Becker's.
"We understand the desire for increased transparency around our journey and path forward," the statement said. "Various stakeholders are involved in Steward’s bankruptcy cases, including the Office of the United States Trustee, an arm of the U.S. Department of Justice responsible for overseeing the administration of Steward’s bankruptcy case."
The statement also pointed to a recent ombudsman report on some of the health system's hospitals which found that, while there was some room for patient care improvement, there were no material issues impacting patient care that require immediate bankruptcy court attention.
"In addition to financial reporting submitted by Steward, the two independent patient care ombudsman appointed by the United States Trustee pursuant to an order of the Bankruptcy Court have issued reports concluding that all Steward hospitals are safe for patient care," the Steward statement said.