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Steward Healthcare Collapse due to CEOs actions

What are the effects of his greed? What benefits has received?
Image courtesy of: https://pappalardolaw.com/2023/11/mental-health-courts-nys/
Image courtesy of: https://pappalardolaw.com/2023/11/mental-health-courts-nys/

National News, Healthcare system founded Boston, 2010

 

In early September of 2024, CEO of Steward Healthcare Dr. Ralph de la Torre failed to appear before the Senate at a hearing that would have looked into the financial collapse of Steward’s hospital chain, and where they would also have been questioning his role in the bankruptcy. 

The chain’s 30 plus hospitals that are scattered across the states are some of the worst in the nation. In August, the company closed two Massachusetts hospitals leaving 1,200 workers jobless, according to the state. The case states that because of Ralph’s greed, several people have suffered, not just patients but also the workers’ treatment. His greed has harmed many people, while he has gained hundreds of millions of dollars, purchased luxury property and expensive vacations, workers and patients have suffered. An example of when both workers and patients were being hurt, is when the chain didn’t pay the vendors which resulted with circumstances like this. Former nurse Ellen Maclinnis from St. Elizabeth’s Medical Center, described the results’ from when vendors were not paid. 

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Maclinnis continued stating, “Sadly enough sometimes, babies die, newborn babies die, and the practice is to place the babies remains in a bereavement box and take it to the morgue. Steward didn’t pay the vendor and there weren’t any bereavement boxes. And nurses were forced to put babies’ remains in cardboard shipping boxes. ” Not only were the child’s parents disrespected, but also the memory of the baby. Due to the financial neglect, there was failure to pay for enough staffing. Not just nurses, but also doctors and specialists. Another category is the failure to pay often for basic equipment, supplies, and for maintenance on machines and even the building itself. 

Because Dr de la Torre refused to testify, the committee issued a subpoena in July. Eight days before the scheduled hearing, de la Torre informed the committee that he would not comply with the subpoena. After de la Torre refused to appear to the second hearing, the Senate unanimously voted to hold de la Torre accountable for a criminal contempt for defying a congressional subpoena. 

 

According to CBS

“A CBS News investigation that spanned nearly two years documented how private equity investors and de la Torre extracted hundreds of millions of dollars while healthcare workers and patients struggled to get the life-saving supplies they needed.”

Several questions are now circulating. For instance, what will happen to Steward’s hospital chain? Will there be a new CEO, or will the business shut down completely? The answers to these questions, and the overall investigation is still ongoing. 

 

Sources:

https://www.cbsnews.com/news/steward-health-care-ceo-ralph-de-la-torre-to-resi

https://www.help.senate.gov/ranking/newsroom/press/video-senate-votes-to-hold-steward-health-ceo-in-contempt-for-failure-to-comply-with-congressional-subpoena 

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