Ralph de la Torre, CEO of Steward Health Care, will resign

The CEO of a hospital operator who filed for bankruptcy protection in May will resign after failing to testify before a U.S. Senate panel.

Steward Health Care CEO Ralph de la Torre oversaw a network of about 30 hospitals across the country. The Texas-based company troubled recent history has drawn scrutiny from elected officials in New England, where some of its hospitals are located.

A spokesperson for de la Torre told CBS News in a statement Saturday that he “amicably parted ways with Steward on mutually acceptable terms” and “will continue to be a tireless advocate for improving reimbursement rates for the underserved patient population.” .

The spokesperson added that de la Torre “believes Steward’s financial challenges shine a much-needed spotlight on Massachusetts’ continued failure to fix its healthcare structure and the inequities in its statewide system.”

ONE CBS News investigation which lasted 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 vital supplies they needed.

In August, the company closed two Massachusetts hospitalsleaving about 1,200 workers unemployed, according to the state.

Sen. Bernie Sanders of Vermont, who chairs the Senate Health, Education, Labor and Pensions Committee, said earlier this month that Congress will “hold Dr. de la Torre accountable for his greed and the damage he has caused to hospitals and patients around the world.” America.”

Following news of the resignation, Democratic Senator Elizabeth Warren of Massachusetts tweeted that “Massachusetts communities are finally free from Ralph’s destructive reign, but he is not free yet – authorities must still prosecute his contempt charge and investigate.” him for other possible crimes he may have committed as CEO of Steward.”

Democratic Sen. Ed Markey of Massachusetts, chairman of the Health, Education, Labor and Pensions subcommittee on Primary Health Care and Retirement Security, also said in a statement Saturday that de la Torre’s resignation is not enough and should be held accountable in court of law.”

“He extracted hundreds of millions from emergency departments, operating rooms and intensive care units to buy luxury properties, expensive vacations and yachts, all while patients suffered and died and workers and hospitals ran out of resources,” Markey wrote.

De la Torre’s resignation takes effect on October 1. approved a resolution on Wednesday, which intended to hold him in criminal contempt for not testify before a committee.

The Senate panel is investigating Steward’s bankruptcy. De la Torre did not appear before him despite having received a summons. The resolution refers the matter to the Federal Public Ministry.

Earlier this month, CBS News learned that a whistleblower came forward to Congress alleging that de la Torre and other Steward executives illegally conspired with foreign officials to secure an overseas hospital contract.

In his complaint to Congress, the whistleblower – identified as Ram Tumuluri, a healthcare executive who worked with the Maltese government – ​​described a 2017 meeting in which de la Torre was “insinuating that he would bribe Maltese government officials”.