CareMax Letter Text (PDF) | Revere Medical Letter Text (PDF)
Washington (November 25, 2024) – Senator Edward J. Markey (D-Mass.), chair of the Senate Health, Education, Labor, and Pensions Subcommittee on Primary Health and Retirement Security, today sent a letter to Carlos de Solo, CEO of CareMax, Inc., and to Benson Sloan, CEO of Rural Healthcare Group, about concerns regarding the ongoing role of Steward leadership in their organizations.
Dr. Ralph de la Torre, the former CEO of Steward Health Care (Steward) serves as a board member of CareMax despite his role in Steward’s bankruptcy. Steward filed for Chapter 11 bankruptcy protection in May 2024 after a litany of hospital closures, service reductions, employee layoffs, and patient deaths. CareMax Inc. filed for Chapter 11 bankruptcy protection on November 18, 2024.
The Massachusetts Health Policy Commission also revealed that the Stewardship executive team will remain on board with Revere Medical, the new consolidated company formed from Rural Healthcare Group’s acquisition of Steward Medical Group and Steward Health Care Network (together, “Stewardship”).
In the letter to CareMax, Senator Markey wrote, “During Dr. de la Torre’s tenure as CEO of Steward Health Care, he failed to safeguard its financial health, and he has demonstrated callous disregard for the consequences of its bankruptcy. According to CareMax, its mission is ‘to improve lives through kindness, compassion, and better health’ with a vision of ‘transforming care to end disparity and create a sustainable healthcare system.’ Dr. de la Torre’s track record with Steward reflects behavior inconsistent with CareMax’s stated values. CareMax must consider this when considering Dr. de la Torre’s continued service on its board.”
In the letter to Rural Healthcare Group, Senator Markey wrote, “I am concerned that the same Stewardship executives who drove that healthcare provider into the ground will now take the reins at Revere Medical. These executives should not be permitted to fail up and place in jeopardy another healthcare provider on which Massachusetts residents will come to rely. The question now is why, despite these failures, the same leadership team is being entrusted with leading Revere Medical, a successor organization that will, presumably, be tasked with rebuilding and stabilizing an even more complex healthcare network.”
Senator Markey has consistently advocated for transparency and accountability for private equity in health care amidst the Steward hospital crisis.
In September, Senator Markey unveiled “The Steward Health Care Report: How Corporate Greed Hurt Patients, Health Workers, and Communities.” The report spotlights patient and worker experiences, hospital quality data, and information on hospital closures in Massachusetts and around the country, to document the devastating impacts of Steward’s mismanagement.
In July, Senator Markey spoke at a press conference after Steward announced the closure of Nashoba Valley Medical Center in Ayer and Carney Hospital in Dorchester. Earlier in the month, Senator Markey was joined by fifteen bipartisan colleagues in voting to subpoena Steward Health Care CEO Dr. Ralph de la Torre to compel him to appear before the HELP Committee on September 12 and answer for the business practices of Steward Health and the role private equity and real estate investment trusts played in its bankruptcy. This was the first time the Senate HELP Committee had issued a subpoena since 1981. On September 19, the Senate voted unanimously to hold de la Torre in civil and criminal contempt of Congress – a first in modern history.
On July 25, Senator Markey and Congresswoman Pramila Jayapal (WA-07) introduced the Health Over Wealth Act, legislation that would put safeguards in place to protect workers, patients, and health care quality, access, and safety; create stronger accountability measures for corporate greed; and close tax loopholes that benefit real estate investment trusts making money off of health care property.
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