Rich CEO of failed hospitals could face prison sentence for increasing contempt of court

A Senate committee voted overwhelmingly Thursday to charge the wealthy CEO of a failed hospital chain with civil and criminal contempt of court for refusing a rare subpoena from lawmakers.

In July, the Senate Committee on Health, Education, Labor and Pensions (HELP) subpoenaed Steward Health Care CEO Ralph de la Torre to testify before lawmakers about the deterioration and eventual bankruptcy of the system, which included more than 30 hospitals in eight states. The resulting dire conditions in the hospitals, which supposedly offered “third world medicine,” allegedly led to the deaths of at least 15 patients and put more than 2,000 others at risk.

The committee, chaired by Sen. Bernie Sanders (I-Vt.), emphasized that during the system's collapse, de la Torre received at least $250 million, bought a $40 million yacht and owned a $15 million luxury fishing boat, while Steward executives flew around on two private jets valued at a total of $95 million.

De la Torre had initially agreed to appear at the Sept. 12 hearing, but canceled the week before. Through his attorneys, he argued that a federal order related to Steward's bankruptcy case prohibited him from discussing the hospital system's situation during reorganization and settlement efforts. The HELP committee rejected that explanation, but de la Torre still did not appear at the hearing.

In a bipartisan vote of 20-0, the HELP Committee voted Thursday to charge de la Torre with civil and criminal contempt of court, with only Sen. Rand Paul (R-Ky.) abstaining. It is the first time in modern history that the committee has passed resolutions on civil and criminal contempt of court. The articles of impeachment will now go to the full Senate for a vote.

If the Senate affirms the verdict, the civil action will instruct Senate counsel to file a civil suit in federal court against de la Torre to compel him to comply with the subpoena and testify before the HELP Committee. The criminal contempt charge would refer the case to the U.S. Attorney for the District of Columbia, who would prosecute de la Torre for failing to comply with the subpoena. If the trial proceeds and de la Torre is convicted, the disgraced CEO could face a fine of up to $100,000 and up to 12 months in prison.

On Wednesday, a day before the committee voted on the contempt of court charge, a lawyer for de la Torres attacked senators, claiming that testimony at the hearing violated his rights under the Fifth Amendment to the United States Constitution, the Boston Globe reported.

In a statement Thursday, Sanders sharply attacked de la Torre, saying his wealth and expensive lawyers did not make him above the law. “Anyone who defies a congressional subpoena will be held accountable, no matter who they are or how well connected they are,” he said.