Senate Hearing on Steward Health Care Bankruptcy; Impact on Arizona

The Senate Health, Education, Labor, and Pensions Committee investigates Steward Health Care's bankruptcy and its effects in Arizona.Photo byMarcel ScholteonUnsplash

The Senate Health, Education, Labor, and Pensions Committee held a hearing today on the bankruptcy of Steward Health Care, which has left patients nationwide without necessary care.

CEO Ralph de la Torre, who had been subpoenaed to testify, did not appear.

Chairman Bernie Sanders (I-Vt.) the committee chairman, criticized de la Torre's absence and emphasized the broader implications of Steward’s financial collapse.

"We cannot allow CEOs like Dr. de la Torre and wealthy private equity executives to treat our healthcare system as their own personal piggy bank. We have got to make sure that what happened at Steward never happens again," Sanders said in a statement on X.

Steward Health Care, which owns Tempe St. Luke's Hospital, Mountain Vista Medical Center in Mesa, St. Luke's Medical Center and St. Luke's Behavioral Health in Phoenix, declared bankruptcy in May with approximately $9 billion in debt.

In Arizona, the fallout from Steward's bankruptcy has been particularly acute. Governor Katie Hobbs has been vocal about the need for accountability and transparency.

“Arizonans' access to high-quality and affordable healthcare should not be compromised by corporate mismanagement,” Hobbs said in a statement. “I have been working tirelessly to protect vulnerable Arizonans and ensure any agreement reached prioritized the health and safety of patients who were failed by Steward Health Care.”

The committee's hearing also addressed the impact of Steward's bankruptcy on healthcare workers and patients. De la Torre's alleged mismanagement, including the use of funds for personal luxuries, according to Sanders.

“How many health care workers still have their jobs today, if Dr. de la Torre spent $160 million on high-quality health care at the hospitals he managed,” Sanders asked. “Instead of a yacht, two private jets, a luxury fishing boat, and a huge contribution to a wealthy prep school."