Steward criminal investigation heats up

As investigations deepen into financially troubled Dallas-based Steward Health Care, John Boehner, former U.S. House Speaker and Steward board member, testified Nov. 14 before a federal grand jury in Boston, The Boston Globe reported Nov. 14. 

Steward sought Chapter 11 bankruptcy protection on May 6 and has since offloaded the majority of its 31 hospitals. In July it was revealed that Steward is under criminal investigation by federal prosecutors at the U.S. Attorney's office in Boston. 

Mr. Boehner was questioned about corruption, bribery and potential fraud within the for-profit health system during his testimony. As a member of Steward's board, Mr. Boehner's position provided him with access to critical financial information as the health system struggled with operational and financial issues, including equipment and staffing shortages

Steward's domestic and international activities were also scrutinized by the grand jury, including potential Foreign Corrupt Practices Act violations, which is a law against overseas corruption and bribery. 

Prosecutors  also zeroed in on the financial transactions of former Steward Chairman and CEO Ralph de la Torre, MD, and other top Steward executives, which could have supported personal interests, The Globe reported.

Dr. de la Torre "amicably separated" from Steward Oct. 1 after 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.

On Sept. 30, Dr. de la Torre sued the HELP committee and its members in federal court, suggesting their actions were unconstitutional punishment for him invoking his Fifth Amendment right not to testify. 

Becker's has reached out to Steward and will update this story should more information become available. 

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Articles We Think You'll Like

 

Featured Whitepapers

Featured Webinars