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Congress Passes Bill to Rein in Conflicts of Interest for Consultants Such as McKinsey

2 years 6 months ago

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Congress this week passed a bill that takes aim at the risk of improper influence when government contractors work for both federal agencies and private-sector clients. President Joe Biden is expected to sign the bill.

The bill, which the House passed on Wednesday after the Senate approved it in August, orders several changes to federal contracting rules. They include provisions requiring contractors to disclose information about potential conflicts of interest and clarifying when a contractor’s work for outside clients may create such a conflict.

In a press release announcing the results of the vote this week, the bipartisan group of senators who sponsored the bill cited ProPublica’s reporting on the consulting giant McKinsey & Company’s work for the Food and Drug Administration. McKinsey earned tens of millions of dollars providing a wide range of advice to the FDA division responsible for regulating drugs, much of it directly affecting the pharmaceutical industry. Among the subjects of McKinsey’s input: an overhaul of drug-approval processes and an assessment tool for monitoring drug safety.

At the same time, McKinsey was working for some of the country’s largest pharmaceutical companies. Its clients included Purdue Pharma and Johnson & Johnson, which were responsible for producing and distributing opioids that have gutted communities nationwide and contributed to many thousands of deaths. Yet the consultancy, which jealously guards its client roster, never disclosed those corporate projects to the FDA.

A report released in April by the House Committee on Oversight and Reform revealed just how deeply entwined the two streams of work were. Committee investigators found that at least 22 McKinsey consultants, including senior partners, worked for both the FDA and opioid makers on overlapping topics, with some advising both simultaneously. McKinsey consultants sought to leverage their FDA work to solicit pharmaceutical industry business, according to the committee’s report, and consultants with ties to Purdue influenced statements made by top public health officials about the opioid epidemic.

McKinsey has denied that its work for the FDA posed a conflict of interest and has insisted it was under no obligation to disclose its work for drug companies to its government clients. The firm has characterized its FDA work as focused on administration and operations, not decisions about when and how to regulate specific drugs. Still, McKinsey acknowledged in response to the house report that “this work, while lawful, fell short of the high standards we set for ourselves.” More broadly, the firm has sworn off any further opioid-related projects and stated that it “did not adequately acknowledge the epidemic unfolding in our communities or the terrible impact of opioid misuse and addiction on millions of families across the country.” (The firm has been a sponsor of ProPublica events.)

Existing federal rulescall for government contractors to disclose actual and potential conflicts of interest, information necessary for agencies to decide whether the situation can be mitigated or whether conflicts merit disqualifying a would-be contractor. But experts in federal contracting say that, until recently, little attention has been paid to how those rules apply to a company’s work for corporate clients — an oversight that the bill sent to the president’s desk this week seeks to remedy.

“The federal government should not have been hiring the same McKinsey employees who were simultaneously working for opioid manufacturers,” Sen. Maggie Hassan, D-N.H., one of the bill’s sponsors, said in a statement after the House voted to pass the legislation. “It is imperative that we make sure that this type of conflict of interest does not happen again.”

The bill, which is titled the Preventing Organizational Conflicts of Interest in Federal Acquisition Act, was co-sponsored by Sens. Joni Ernst, R-Iowa, Chuck Grassley, R-Iowa, and Gary Peters, D-Mich. It passed by unanimous consent in the Senate, but the House vote fell roughly along partisan lines, with three Republicans joining their Democratic colleagues in voting for passage.

The extent of McKinsey’s consulting for opioid makers began to become clear in 2019, when ProPublica first reported on it. The firm helped Purdue Pharma “turbocharge,” as its consultants put it, sales of OxyContin, the company’s highly addictive flagship painkiller. Last year, McKinsey settled legal claims brought by the governments of 47 states, the District of Columbia and five U.S. territories. Related litigation over McKinsey’s opioid work — a consolidated set of lawsuits brought by individuals, city governments, Native American tribes and school districts — remains pending before a federal judge in San Francisco.

A top FDA official told a Senate committee earlier this year that the agency would not sign new contracts with McKinsey while congressional investigations into the firm’s possible conflicts remain ongoing.

by Ian MacDougall

20-Year-Old Man In St. Louis County Charged With First-Degree Murder

2 years 6 months ago
ST. LOUIS COUNTY - On Thursday, December 15, 2022, the St. Louis County Prosecuting Attorney’s Office issued charges on suspect Wayea Hallowanger, 20 years of age, of the 1800 block of Charleston Estates Drive in Florissant, Missouri 63031, for Murder First Degree and Armed Criminal Action. A booking photo of Hallowanger is attached. Hallowanger is being held without bond. Please note, charges are merely an accusation, and Defendants are presumed innocent until and unless proven guilty in a court of law. The probable cause statement reads: Victim, a delivery driver from a local pizza chain, responded to the 4600 block of Whisper Lake Drive for a delivery. Upon arrival, Victim was shot more than once by Suspect as Victim was preparing to complete the delivery. Victim contacted 911 to state he had been shot and he would not survive. Subsequent investigation revealed the pizza order had been placed by Suspect to a vacant apartment. Suspect was subsequently arrested. Post-Miranda,

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Some snow is in the St. Louis Christmas week forecast

2 years 6 months ago
ST. LOUIS, Mo. - There will be a mix of clouds and sun this morning that will trend back toward more clouds than sun this afternoon. There may even be a couple of rogue snow flurries around near and north of I-70 along with cold, gusty winds. Temperatures will stay in the 30s today. Saturday [...]
Chris Higgins

Macoupin County Leads Region In Deer Harvested, Plus Other Area and Statewide Totals From IDNR

2 years 6 months ago
SPRINGFIELD – Hunters in Illinois took a preliminary total of 76,854 deer during the seven-day 2022 Illinois Firearm Deer Season that concluded Dec. 4, according to the Illinois Department of Natural Resources (IDNR). In the IDNR totals, Macoupin County had 1,576 deer harvested this year to lead the region, compared to 1,431 in 2021. Calhoun recorded 724 deer harvested in 2022 compared to 650 in 2021, and Greene had 1,019 deer harvested compared to 954 in 2021. Madison County had 692 deer harvested compared to 637 in 2021. Jersey had 646 deer harvested in 2022, while there were 588 harvested in 2021. There were 775 deer harvested in St. Clair County compared to 699 in 2021. Comparatively, hunters harvested a final total of 70,411 deer during the firearm season in 2021. The preliminary harvest for the second segment of the 2022 firearm season Dec. 1-4 was 24,500, compared with 21,477 during the second season in 2021. The preliminary harvest for the first segment of this year’s

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More Than Two Decades in, the El Monstero Experience Is Bigger Than Ever

2 years 6 months ago
It’s the holiday season in St. Louis, which means a month filled with musical Brasstravaganzas, Phillipaloozas and Hanukkah Hullabaloos. But no year-end tradition quite compares to El Monstero’s December residency at the Pageant. A supergroup of veteran St. Louis musicians, the band has been staging its popular Pink Floyd tribute concerts since 1999.
Steve Leftridge

Many Missouri flags at half-staff Saturday for fallen firefighter

2 years 6 months ago
ST. LOUIS, Mo. - Many Missouri flags will be at half staff this weekend to honor the life of Kennett Fire Department Captain Robert Moore. The 57-year-old man was called to help fight a fire on December 3, 2022. He was found dead in his home the next day after a medical emergency. Flags will [...]
Joe Millitzer

Edwardsville Fire Department Offers Cold Weather Tips, Warming Site Details

2 years 6 months ago
EDWARDSVILLE - With much colder temperatures in the forecast, the Edwardsville Fire Department would like to remind residents to pay attention to weather advisories, avoid safety risks, and take steps to remain warm as the temperatures drop. The following tips can help residents to stay safe throughout the winter months: Avoid using ovens and stoves as alternate heating sources; these are potentially dangerous sources of carbon monoxide and fire. If you are using a portable heater, plug it directly into a wall outlet — do not use extension cords or power strips as they can easily start fires. Keep portable heaters away from other items and never set anything on top of a portable heater. Wear appropriate clothing when going outside. Add layers to increase warmth, and be sure to protect your face, ears, and hands. Be aware of your vehicle’s fuel level; don’t risk running out of gas. Keep winter supplies such as spare blankets, gloves, and hats in you

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Drive Merry, Bright And Sober This Holiday Season

2 years 6 months ago
SPRINGFIELD – With the holidays in full swing, Illinois Conservation Police officer are partnering with the Illinois Department of Transportation to remind motorists about the dangers of impaired driving. From Dec. 16 through Jan. 2, law enforcement across Illinois will step up enforcement efforts with a high-visibility “Drive Sober or Get Pulled Over” and “Drive High, Get a DUI” traffic safety campaign. “We want everyone in our communities to enjoy the holidays without worrying about the dangers of impaired drivers,” said Illinois Conservation Police Lt. Curt Lewis. “During the campaign, you can expect to see extra safety patrols. We will show zero tolerance for alcohol- and drug-impaired driving to help ensure everyone makes it to and from their holiday festivities safely.” According to the National Highway Traffic Safety Administration’s (NHTSA) Fatality Analysis Reporting System, 11,654 people were killed in motor vehicle

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