Massachusetts Sen. Elizabeth Warren has called for the removal of Ralph de la Torre from his role as CEO of Steward Health Care, following the company’s filing for bankruptcy in May.
“Why is Ralph de la Torre still there?” Warren questioned during an appearance on Boston Public Radio on Thursday. “Why is he still drawing money, and making decisions?”
In bankruptcy situations, the senator emphasized that management typically changes — whether a judge appoints a trustee to change current management, or the company takes it upon itself to appoint new leaders.
Warren explained that a bankruptcy judge has the authority to name a trustee, and that any of the company’s creditors, including banks or the state attorney general, could request this action.
The Massachusetts senator has been vocal in her condemnation of the ongoing Steward situation, including the closures of two hospitals by the end of the month.
“When we’re hearing about these two hospitals and they have to be closed by the end of the month, can we just keep in mind: Ralph de la Torre is still calling the shots,” Warren said.
Steward Health Care did not immediately respond to a request for comment. In a statement provided to State House News Service Thursday, a spokesperson for de la Torre said he is not in a position to make those decisions and that he was “regrettably” on a long-planned family vacation when the closures were announced.
“According to the terms of the bankruptcy, Dr. de la Torre does not have the authority to make decisions regarding sales or closures in the bankruptcy process, including the announcement that the bids for Carney and Nashoba were not acceptable and that the hospitals may be forced to close,” the spokesperson said.
The senator noted the impact these closures will have on families and health care workers, stressing that the consequences are far-reaching. Nearly 1,250 employees are set to lose their jobs when Dorchester’s Carney Hospital and Ayer’s Nashoba Valley Medical Center close at the end of the month.
“There are sick people who need help. There are little kids who fall at the playground ... and now Mama’s going to have to go a lot farther because the hospital nearby is closed,” Warren said.
“I’ve talked to nurses at Carney, for example, who have their 30-year pins. I’ve talked to nurses whose moms worked there, who’ve given their whole lives just — that’s their place to go and help people,” the senator continued. “And all of that goes up in smoke because a handful of corporate raiders — these venture capital guys, these private equity guys — think they can come in and just hollow these companies out.”
Warren is urging the bankruptcy judge to take action by appointing a trustee who will ensure that the management of Steward Health Care focuses on the well-being of patients and employees rather than financial gain.
“We need to pick up the tools that are available because bankruptcy, if nothing else, is about 100% transparency,” Warren said. “Management is not supposed to be running for itself. It’s supposed to be running it for the creditors and for the community.”
