Bankrupt hospital chain Steward Health Care paid private equity giant $700M dividend despite losses

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Bankrupt hospital chain Steward Health Care paid private equity giant $700M dividend despite losses
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Steward Health Care System, the Boston-based network of 30 hospitals that operate in rural and low-income areas, recently declared bankruptcy.

The country’s largest private, for-profit hospital chain paid out a $790 million dividend — with a big chunk of that money going to its Manhattan-based private equity owner — before it filed for bankruptcy several years later, according to a report.

According to Sitrick, Cerberus received $719 million of the dividend while the remaining $71 million was paid to the Steward management team headed by CEO Dr. Ralph de la Torre. De la Torre, who has resisted attempts by a bipartisan group of senators to have him answer questions in Congress about his company’s collapse, lived a life of luxury that included corporate jet flights to exotic locales and a multimillion-dollar apartment — all on the company’s dime,De la Torre was spending lavishly despite the fact that his company was reporting nine-figure losses in 2020, 2021 and 2022.

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