A major private-sector hospital CEO claimed millions at the expense of patients. Here’s what happened.
It’s a Shame
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Steward Health Care System CEO is accused of failing the patients, workers, and hospitals.
More Than 30 Hospitals for Sale
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Steward put up nearly 32 hospitals for sale when the private corporate hospital filed for Chapter 11 bankruptcy in May 2024. The news at the time surprised people as it seemed to just happened “overnight,” according to reports.
How Did the Private Hospital Get So Bad?
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A timeline by WCVB Boston News shows several challenges the hospital and its management faced throughout its years. The hospital began its journey back in 2010 when the new owner bought the Caritas Christi hospital system.
“Patient Negligence” & “Filth”
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Steward always has a doubtful reputation. According to Boston News, the timeline included one of the hospital’s brands, Quincy Medical Sector Hospital, which was reportedly temporarily shut in 2013 due to “filthy” conditions and “patient neglect.” The following year, the hospital would see a complete shutdown.
Fire & Flood Damage
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Steward had trouble with flooding at the Norwood branch in 2020. The Signature Healthcare Brockton branch suffered fire damage due to a “transformer room fire.”
Lawsuit Costing Money
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The Quincy Base Compass Medical had to close its doors because of a lawsuit between stakeholders, and the company was ordered to pay $16 million. In 2023, Steward would later say that they “did not get paid.”
Accidents & Financial Strain
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During the rest of 2023, the hospital continued to face financial challenges. The Norwood facility that the company wanted to rebuild due to the flood damage earlier faced more issues as a site worker sustained a two-story fall.
The Problems Keep Coming
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When 2024 came around, more and more issues and fires were to be put out. However, one of the hospital’s worst and most troubling concerns was allegations that the CEO had been pocketing over 240 million in the past four years before filing for bankruptcy.
Buying up Lavish Assets
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According to The Daily Mail, Dr Ralph de la Torre took the majority ownership of Steward in 2020. A report on his finances was later revealed in the Wall Street Journal, which showed some of de la Torre’s assets, including a 190-ft yacht worth $40 million and multiple properties.
Staying With the Rich & Famous
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Reports said de la Torre bought a ranch in Texas worth more than $7 million and that his neighbors included the likes of George W Bush.
At the Expense of Others
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De la Torre is said to have acquired all his new and expensive assets when the hospitals were going under. Not only were the lives of the patients in the Steward medical group at stake but so were the medical staff’s jobs.
He Stole Millions
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The governor of Massachusetts, Maura Healey, expressed her anger toward del le Torre, saying, “he basically stole millions out of Steward on the backs of workers and patients…” She also noted that del la Torre was at the Olympics in Paris for the equestrian events.
“Disgusted!”
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Healey further conveyed her anger as she spoke for many people in the Steward hospital industry. “I am disgusted!” Healey said. “Our administration is working night and day to protect jobs and patients and pick up the pieces of the situation that Ralph de la Torre has put us in,” The Daily Mail reported.
120 Days Before Closure
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The governor urged Steward at the time to adhere to legislation as state hospitals had 120 days before shutting.
State to Facilitate
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She said that the state would take over management of the St. Elizabeth’s Medical Center as she wants the state to facilitate the transition to new ownership. At the same time, the patients continue receiving medical treatment.
Further Action
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According to reports, the U.S. State Senate will call a hearing with del la Torre, who is the company’s CEO. The hearing is said to be a public one and will press for answers related to the hospital’s decline.
Subpoena for Justice
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The hearing with del la Torre is said to take place in September, next month. Home Senator Bernie Sanders said the government will subpoena the CEO of Steward. Sanders described the situation as “outrageous corporate greed.”
CEO Does Well Financially Despite Crises
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The senator also noted that despite many of the hospitals under Steward closing their doors and the dire financial crisis they face, the CEO appears to be doing “phenomenally well, financially…”
Enormous Expenses
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Saunders also named some of the other expenses the CEO acquired while the hospital, patients, and medical staff went under. Sanders noted records showing del la Torre having purchased a $60 million private jet, having a custom-made fishing vessel for $15 million, a “backup jet” worth $33 million “in case the other jet broke down,” he said.
Need To Be Held Accountable
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The Senator expressed that “today we say enough is enough. It is time for Congress to hold Dr del la Torre accountable for his extreme greed,” he concluded.
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