Tuesday, January 19, 2021
Philly News For Your Information


McKinsey & Company advised Purdue Pharma to pay pharmacies when their customers overdosed on OxyContin: report

By PhillyNews.FYI , in News , at November 27, 2020 Tags: , , , , ,


The scandal over major corporations causing an overdose crisis expanded on Friday with a bombshell report in The New York Times.

“When Purdue Pharma agreed last month to plead guilty to criminal charges involving OxyContin, the Justice Department noted the role an unidentified consulting company had played in driving sales of the addictive painkiller even as public outrage grew over widespread overdoses,” the newspaper reported. “Documents released last week in a federal bankruptcy court in New York show that the adviser was McKinsey & Company, the world’s most prestigious consulting firm.”

ADVERTISEMENT

McKinsey reportedly had a plan to reimburse distributors every time one of their customers was killed by OxyContin.

“In a 2017 presentation, according to the records, which were filed in court on behalf of multiple state attorneys general, McKinsey laid out several options to shore up sales. One was to give Purdue’s distributors a rebate for every OxyContin overdose attributable to pills they sold,” The Times reported. “The presentation estimated how many customers of companies including CVS and Anthem might overdose. It projected that in 2019, for example, 2,484 CVS customers would either have an overdose or develop an opioid use disorder. A rebate of $14,810 per ‘event’ meant that Purdue would pay CVS $36.8 million that year.”

CVS and Anthem denied receiving rebates.

Enjoy good journalism?

… then let us make a small request. The COVID crisis has slashed advertising rates, and we need your help. Like you, we here at Raw Story believe in the power of progressive journalism. Raw Story readers power David Cay Johnston’s DCReport, which we’ve expanded to keep watch in Washington. We’ve exposed billionaire tax evasion and uncovered White House efforts to poison our water. We’ve revealed financial scams that prey on veterans, and legal efforts to harm workers exploited by abusive bosses. And unlike other news outlets, we’ve decided to make our original content free. But we need your support to do what we do.

Raw Story is independent. Unhinged from corporate overlords, we fight to ensure no one is forgotten.

We need your support in this difficult time. Every reader contribution, whatever the amount, makes a tremendous difference. Invest with us. Make a one-time contribution to Raw Story Investigates, or click here to become a subscriber. Thank you. Click to donate by check.

Value Raw Story?

… then let us make a small request. The COVID crisis has cut advertising rates in half, and we need your help. Like you, we believe in the power of progressive journalism — and we’re investing in investigative reporting as other publications give it the ax. Raw Story readers power David Cay Johnston’s DCReport, which we’ve expanded to keep watch in Washington. We’ve exposed billionaire tax evasion and uncovered White House efforts to poison our water. We’ve revealed financial scams that prey on veterans, and efforts to harm workers exploited by abusive bosses. We need your support to do what we do.

Raw Story is independent. You won’t find mainstream media bias here. Every reader contribution, whatever the amount, makes a tremendous difference. Invest with us in the future. Make a one-time contribution to Raw Story Investigates, or click here to become a subscriber. Thank you.

Report typos and corrections to: [email protected].

Comments


Leave a Reply