The CEO of Steward Health who refused to testify before the US Senate will resign

WASHINGTON (Reuters) – Ralph de la Torre will step down as CEO of troubled Steward Health Care next week, the company said on Saturday, after he was held in criminal contempt by the U.S. Senate for refusing to testify about cost-cutting decisions at the group’s 31 hospitals before it filed for bankruptcy.

In a statement, the Dallas-based company said de la Torre will step down as CEO and president effective Oct. 1 as part of an agreement in principle reached earlier this month.

A spokesperson for de la Torre confirmed that the former heart surgeon “has amicably parted company with Steward on mutually agreeable terms” and “will continue to be a tireless advocate for improving reimbursement rates for underserved patient populations.”

The Senate voted unanimously Wednesday to hold de la Torre in criminal contempt of Congress after he refused to attend a Sept. 12 hearing before the Senate Health, Education, Labor and Pensions Committee, which was looking into the issues Steward’s finances. De la Torre had been summoned to attend the hearing.

Steward, the largest private hospital network in the US, filed for bankruptcy in May as it seeks to sell all of its hospitals and settle $9 billion in debt. The company has sold several hospitals since that filing.

“Dr. de la Torre urges continued focus on this mission and believes that Steward’s financial challenges shine a spotlight on Massachusetts’ continued failure to fix its health care structure and the inequities in its state system,” said the his word.

A number of hospitals affected by Steward’s financial problems were based in Massachusetts.

(Reporting by Lucia Mutikani; Editing by Paul Simao)