After stepping down, Steward Health Care’s CEO sues US Senate committee

Steward Health Care’s Ralph de la Torre, who is stepping down as the bankrupt private hospital network’s chief executive, on Monday sued a US Senate committee which has voted to hold him in contempt for refusing to testify about Steward’s financial troubles.

The Senate Committee on Health, Education, Labor and Pensions violated de la Torre’s right against self-incrimination under the US Constitution’s Fifth Amendment by threatening him with “criminal retribution” and “public humiliation,” according to a lawsuit filed Monday in Washington, D.C., federal court.

A spokesperson for the Senate committee’s chair, independent Bernie Sanders, said that the contempt vote had unanimous support in the Senate and the lawsuit had “no merit.”

Steward, once the largest privately owned hospital network in the US, filed for bankruptcy in May, seeking to sell all of its 31 hospitals and address $9 billion in debt. The company has sold several hospitals as well as its physician network during its bankruptcy.

The Sept. 12 Senate committee hearing, which probed cost-cutting decisions at Steward hospitals, was “simply a device for the Committee to attack Dr. de la Torre and try to publicly humiliate and condemn him,” according to the lawsuit.

De la Torre declined to testify even after the committee issued a subpoena, saying that answering questions could violate his rights and impede Steward’s bankruptcy reorganization.

In de la Torre’s absence, the committee heard from nurses and local officials who said that Steward’s poor management had harmed patients at its hospitals. Democratic and Republican members of the committee said that the testimony highlighted the dangers of allowing private health care companies to prioritize profits over patients.

The full Senate voted to hold de la Torre in contempt on September 25 for skipping the hearing. The vote marked the first time since 1971 that the Senate has voted to make a criminal contempt referral to the US Department of Justice, which will ultimately decide whether to bring charges.

De le Torre said in his lawsuit that the contempt vote was an unconstitutional attempt to coerce his testimony. He seeks a court ruling declaring that he cannot be punished for asserting his Fifth Amendment rights or be compelled to comply with the subpoena.

Steward said Saturday that de la Torre was stepping down as CEO as of Oct. 1 as part of an agreement in principle reached earlier this month. De la Torre, a former heart surgeon, said the separation was amicable. Reuters