The Senate Health, Education, Labor and Pensions Committee, established in 1869, has taken a significant step in its ongoing investigation of Steward Health Care. In a unanimous decision, the panel voted to hold Ralph de la Torre, CEO of Steward Health Care, in both civil and criminal contempt of Congress.
This action comes after de la Torre defied a subpoena to appear at a hearing on September 12, 2024. The committee, led by Chairman Bernie Sanders and Ranking Member Bill Cassidy, has been scrutinizing Steward's financial practices and their impact on patient care.
"If you defy a Congressional subpoena, you will be held accountable. We had no choice but to move forward with both civil enforcement of the subpoena and criminal charges against Dr. de la Torre."
The panel's investigation has revealed stark contrasts between de la Torre's compensation and the financial struggles of Steward's hospitals. This disparity is reflective of broader trends in the healthcare industry, where the average CEO-to-worker pay ratio is 253:1, and the average hospital CEO salary is around $600,000 per year.
Steward Health Care, founded in 2010 and headquartered in Dallas, Texas, operates about two dozen hospitals across the country. The company is currently engaged in bankruptcy proceedings, mirroring a concerning trend as hospital bankruptcies in the U.S. reached a record high in 2023.
The committee's action is unprecedented, with Senate aides noting that this is the first time the panel has pursued contempt charges against a potential witness. Contempt of Congress is a federal misdemeanor punishable by up to one year in prison, although the last successful prosecution occurred in 1974.
Senator Edward J. Markey emphasized the need for accountability, drawing a parallel to the case of Stephen K. Bannon, who is serving a four-month prison sentence for contempt of Congress related to the January 6, 2021 Capitol riot investigation.
The resolutions passed by the committee will now advance to a potential vote of the full Senate. If approved, they could lead to civil enforcement of the subpoena and potential criminal prosecution.
This case highlights broader issues in the U.S. healthcare system, which spends more per capita than any other developed nation. With hospital operating margins declining since 2020 and healthcare worker shortages projected to reach critical levels by 2025, the industry faces significant challenges.
The Justice Department's ongoing investigation into Steward regarding allegations of fraud adds another layer of complexity to the situation. In 2023, the DOJ recovered over $5.6 billion from healthcare fraud cases, underscoring the scale of the issue.
As the Senate moves forward with this unprecedented action, it sends a clear message to the healthcare industry: prioritize patient care over profits. The outcome of this case could have far-reaching implications for healthcare executives and the broader $4 trillion U.S. healthcare industry.