Steward Health Mismanagement Indicates Prioritization of Greed over Patient Lives

September 12, 2024

Steward Health Mismanagement Indicates Prioritization of Greed over Patient Lives

Following Steward Bankruptcy, Hospital Closures, Congress Must Pass Medicare for All

Washington D.C. - Patients are paying the highest price after years of Steward Health Care's apparent mismanagement including a string of hospital closures and a bankruptcy declaration. At a Senate HELP Committee hearingThursday, Steward CEO Ralph De La Torre refused to attend, despite the Committee's issuance of a subpoena. Despite the Steward CEO's absence, legislators dove into health care structures, private equity firms and the harms on patients and providers.

In a recent report, Congressional staff found higher rates of death at some Steward-owned hospitals and that at least 4,400 Steward hospital workers lost their jobs after eight hospital closures across four states in the past decade. More hospital sales and potential closures are pending as Steward's bankruptcy proceedings continue.

Public Citizen health care advocate Eagan Kemp says the dangers of putting corporate profits ahead of patients were on full display.

"Steward Health Care is hurting patients, providers and communities in service of shareholders," said Kemp. "Steward and other private equity companies must face accountability for their deplorable actions. Legislative efforts like the Health Over Wealth Act and the Corporate Crimes Against Health Care Actcould better hold bad actors accountable and push back against the snowballing corporate power in health care. Beyond these measures, we must pass Medicare for Allto finally end greed in the U.S. healthcare system and ensure patients are put first."

The empty seat facing senators during this important hearing should have been filled by CEO Ralph De La Torre following a subpoena for his appearance. Public Citizen co-president Lisa Gilbert says his absence, even at risk of jail time, is a clear sign of Steward's disdain for the American people.

"Steward's CEO clearly thinks he is above accountability, whether to the people of Massachusetts, Louisiana or other states where they have disrupted care and to Congress, where he tried to dodge a subpoena to testify before the HELP Committee," said Gilbert. "We are heartened that the HELP Committee has announced a plan to hold him in contempt of Congress. There is a reason private equity has also been referred to as 'vulture capital.' It is time for Ralph De La Torre and people like him to be held accountable for the devastation they have wrought."

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