Ralph de la Torre, CEO of Steward Health Care, is expected to step down from his position, with his resignation being affective from tomorrow 1st October.
This decision comes after Mr de la Torre recently declined to testify before the US Senate earlier this month regarding the company’s activities.
Having founded Steward Health Care in 2010, de la Torre’s leadership has been characterised by significant growth and expansion, transforming the organisation into one of the largest private hospital operators in the US.
However, the company has faced mounting challenges, particularly surrounding its operations in Malta and financial scrutiny in the US, as Steward filed for bankruptcy in May, seeking to sell all of its hospitals and address €8 billion in debt. The company has sold several hospitals since that filing.
Mr de La Torres refuses to testify
Mr De la Torre’s refusal to testify before the US Senate raised concerns about corporate governance and transparency within the company, which led to the US Senate voting unanimously to hold him in criminal contempt.
The Senate hearing was called to address what lawmakers have termed a “healthcare disaster” under Steward's management. Reports suggest that at least 15 patients lost their lives in Steward hospitals due to inadequate care, with thousands more put at risk. Testimonies from nurses and state leaders revealed alarming conditions, including hospitals struggling with insufficient staff, supplies, and proper maintenance.
“He has decided not to show up because he doesn’t want to explain to the American people how horrific his greed has become,” US Senator Bernie Sanders said. “Tell me about your yacht. Tell me about your fishing boat. I want to hear your justification for that. Tell that to the community where staff was laid off while you made $250 million," he added.
Mr Sanders later took to his social media to say that in the US, at least 15 patients at Steward Health Care hospitals died because of a lack of medical equipment or staffing shortages, and 2,000 others were put in “immediate peril”.
In response to questions regarding the company's conduct, Mr de la Torre had been summoned to address allegations of mismanagement related to a €1.1 billion fund received through a US federal bailout programme.
Locally
The healthcare provider has been at the centre of controversy for its involvement in the running of three public hospitals in Malta, which was a highly contentious deal since its inception.
Steward Health Care has yet to announce who will take over the reins after Mr de la Torre’s departure, but the transition comes at a time of heightened scrutiny for the company’s operations across all markets.
Ralph de la Torre’s exit from Steward Health Care marks a pivotal moment for the organisation, leaving many in the healthcare sector awaiting further developments regarding its future leadership and strategies.
