Congress is investigating McKinsey about his role in the opioid crisis

Congress is investigating McKinsey about his role in the opioid crisis


In a new attack on global consulting giant McKinsey & Company, Congress on Friday launched an investigation into the company’s role in the opioid crisis and requested a letter requesting a record of its “business practices, conflicts of interest and management standards.”

The 12-page letter sent by the House Committee on Oversight and Reform requested the names of McKinsey customers in the healthcare industry and documents related to his work with opioid manufacturers, distributors and retailers. The committee is also investigating how McKinsey’s advice to drug manufacturers might conflict with the work it has done for the Food and Drug Administration.

By advising opioid manufacturers and “the federal agency that regulates their behavior,” McKinsey “may have had a significant negative impact on the health of Americans,” the committee said.

The letter was signed by the chairman of the committee, Carolyn B. Maloney Rep. Of New York, who asked McKinsey to submit the documents by November 19. McKinsey’s policy is not to identify its customers or the advice they give.

A company spokesman said Friday that McKinsey had “received the letter from the committee and will be communicating directly with the committee on their inquiries.”

That year, McKinsey agreed to pay all 50 states more than $ 600 million to clear the investigation into how the company had “charged” opioid sales and focused primarily on its work with Purdue Pharma, the maker of OxyContin, concentrated. McKinsey did not admit wrongdoing.

Friday’s inquiry follows a closer request dated August 23 by a bipartisan group of six US Senators seeking documentation from the FDA about their work with McKinsey while regulating opioid manufacturers, calling this relationship “a potential conflict of” Interest. “The senators asked for more information about the company’s collaboration with the FDA department that approved certain drug classes, including prescription opioids.

OxyContin and similar pain relievers can be addictive and prone to abuse. From 1999 to 2019, nearly 500,000 people in the United States died from opioid overdoses, according to the Centers for Disease Control and Prevention.

The House of Representatives panel is seeking information about McKinsey’s “apparent failure to monitor and prevent harmful practices,” wrote Ms. Maloney, a Democrat, in the letter addressed to the company’s managing partner, Bob Sternfels.

In recent years, McKinsey has received scrutiny from both Republicans and Democrats for a variety of its consulting projects. In October 2018, Senator Elizabeth Warren, a Massachusetts Democrat, asked the company for more information about its work in Saudi Arabia. Last year, Florida Republican Senator Marco Rubio urged McKinsey to disclose the names of Chinese customers whose businesses could conflict with American national interests.

The House Committee is also looking for documents beyond McKinsey’s opioid work, citing cases where consultants may have helped companies raise drug prices or block competition with cheaper generics.

Also under scrutiny is McKinsey’s in-house hedge fund, McKinsey Investment Office Partners, a pension fund and partner investment vehicle that had more than $ 31 billion in assets under management last year. The fund has indirect investments in companies, including its drug manufacturer customers. The committee would like a list of all of the Fund’s investments and a list of McKinsey employees who have made them since 2005.



Source link

Share:

Share on facebook
Facebook
Share on twitter
Twitter
Share on pinterest
Pinterest
Share on linkedin
LinkedIn
Rachel Meadows

Rachel Meadows

Trending topics news writer who enjoys cooking, walking her dog and travel.

Related Posts

Enter our vacation Giveaway to

Las Vegas!

Everyone wins a prize!