Lawmaker urges federal review after testimony alleging Steward Health Care understaffed hospitals and left about $40 million unpaid

An unidentified participant at a congressional hearing on Dec. 24 urged federal review of Steward Health Care after testimony alleging the company understaffed hospitals, failed to buy required medical equipment and left vendors unpaid for about $40 million.

The speaker singled out management under "Mister De La Torre" at Glenwood and other Steward facilities, calling the conduct "reprehensible" and saying it "never should have happened." The speaker said Steward operated in the state from 2017 to 2023 and that five hospitals in Utah were among those affected.

"They understaffed health care facilities. They didn't pay for required medical equipment. They failed to meet minimum operating standards," the speaker said. The same speaker said vendors in the state were owed "about $40,000,000," and stated that the company's actions "endangered lives."

The participant said the Department of Health and Human Services (HHS) is responsible for federal oversight to combat "waste, fraud, and abuse," and suggested that those problems appear to have occurred at Steward. The speaker also expressed regret that no representative from either the current or prior administration was present to explain what HHS should be doing.

The speaker asked how federal oversight can prevent similar problems, particularly in rural hospitals, and whether action is needed at the federal or state level to ensure acceptable levels of care. The hearing record does not show an administration response in this segment.

The speaker concluded by urging careful and thorough federal review; no formal motion or vote was recorded in the provided transcript segment.