Dear White House: Look who’s funded by the health care industry

By Michelle Malkin  •  August 6, 2009 10:21 AM

This is rich. White House smear merchants and their nutroots water-carriers are decrying “corporate lobbyists” funded by the evil health care industry. Referring to Rick Scott, chairman of Conservatives for Patients Rights and former Columbia/HCA executive, White House spokesman Robert Gibbs jeered: “I think you’ve got somebody who’s very involved, a leader of that group that’s very involved in the status quo, a CEO that used to run a health care company that was fined by the federal government $1.7 billion for fraud. I think that’s a lot of what you need to know about the motives of that group.”

Just to make the Gibbs’ moral equation clear:

1) Ties to the health care industry = suspect motives.

2) Ties to health care companies involved in government settlements = suspect motives.

Keep this in mind as you read two excerpts below from Culture of Corruption about the legal and financial work of Attorney General Eric Holder and health care czar Nancy DeParle. In Obama World, some health care industry ties are less suspect than others.

***

From Chapter 4: Meet the Mess: Inside the Crooked Cabinet…

Among the other eyebrow-raising cases [Attorney General Eric] Holder took on at Covington & Burling:

*Forging a massive settlement for Purdue Pharma, manufacturer of the addictive painkiller OxyContin, with the state of West Virginia in 2004. The state accused the drugmaker of deceptively marking OxyContin as safe and effective for minor pain. The firm’s marketing practices, the state maintained, led to West Virginia users becoming addicted to the drug. State attorney general Darrell McGraw Jr., a Democrat, filed suit. In an article entitled, “Why Eric Holder Represents What’s Wrong with Washington,” liberal columnist David Corn described Holder’s pivotal role in negotiating a settlement that spared executives a criminal trial:

This suit was a serious threat to the drugmaker, and it eventually called in Holder. And in November 2004, the morning that the case was about to go to trial, Holder helped negotiate a settlement. Working in the judge’s chambers in West Virginia, he forged an agreement under which the firm would have to pay $10 million over four years into drug abuse and education programs in West Virginia. Purdue would not have to admit any wrongdoing. (Days earlier, the firm had offered the state about $2 million to settle; McGraw had turned down Purdue and had not bothered to produce a counter-offer.)

The settlement was a big win for the company. Ten million dollars was a piddling amount compared to what Purdue was reaping from OxyContin sales. More important, this settlement helped keep the lid on the firm’s criminal activities. There would be no trial—and no public release of documents or testimony about the company’s actions, which were already being investigated by federal prosecutors. In late 2002, the feds had begun an investigation of Purdue, with the first of what would be nearly 600 subpoenas for corporate records related to the manufacturing, marketing, and distribution of OxyContin.

In May 2007, the company and its three top executives pleaded guilty to federal charges of fraudulently marketing OxyContin by claiming it was less addictive, less subject to abuse, and less likely to cause withdrawal symptoms. Purdue and the three execs agreed to pay fines of $634.5 million.

*Brokering a settlement for pharmaceutical kingpin Merck, which had been besieged by multiple state lawsuits over Medicaid overbilling and doctor kickbacks involving four popular drugs. Merck admitted no wrongdoing, paying $671 million to make whistleblowers, state probes over their pricing, and bribery charges go away.

From Chapter 5: Backroom Buddies: Dancing with the Czars…

Despite President Obama’s loud denunciations of the revolving-door lobbyist culture in Washington, [health care czar Nancy] DeParle’s industry ties didn’t bother the White House in the least. DeParle served as an investment advisor at JP Morgan Partners, LLC, a private equity division of a private equity division of JP Morgan Chase & Co; sat on the board of directors at Boston Scientific Corporation and Cerner Corporation; and held directorships at Accredo Health Group Inc. (now owned by Medco Health Solutions Inc.), Triad Hospitals (now part of Community Health Systems), Guidant Corporation (now part of Boston Scientific), and DaVita Corporation, among others. In all, she sat on at least 10 ten boards while advising JP Morgan and working as managing director at a private equity firm, CCMP Capital. From 2002 to 2008, while holding all those titles, DeParle also served as a member of the government-chartered Medicare Payment Advisory Committee (MedPAC), an influential panel that advises Congress on what Medicare should cover and at what price.

In 2006 and 2007 alone, DeParle collected at least $3.5 million from fees and the sale and awards of stock from health-care businesses whose businesses will likely fall under her jurisdiction, according to the Chicago Tribune. That amount likely represents a small portion of DeParle’s corporate earnings since 2001.

Philip Klein of The American Spectator concluded: “”[DeParle’s] journey from the public sector to the private sector and back again would seem to represent the type of revolving-door relationship between Washington and corporate America that President Obama pledged to put an end to during the campaign and in an executive order.”” The point is not that administration officials should be barred if they have any ties to business or any past lobbying experience that might raise conflict-of-interest questions. Indeed, DeParle’s significant private-sector experience arguably is could be a strength. The point is that the Obama administration has taken a self-aggrandizing stand against hiring such players…while hiring them left and right.

As with previous czar questions, White House press secretary Robert Gibbs shrugged off concerns about DeParle’s industry ties:

Question: Robert, I just wanted to ask about Nancy DeParle and the fact that she sits on corporate boards that have health and medical-related interests. Is that— — does the administration view that as any potential conflict of interest? Are there any potential problems there?

MR. GIBBS: No. I mean, obviously, the White House has confidence in her and her abilities as part of the health care reform effort here.

DeParle, the White House announced, would not need a waiver to the president’s famous executive order requiring appointees to pledge not to participate “in any particular matter involving specific parties that is directly and substantially related to any my former employer or former clients, including regulations and contracts”” for a period of two years from the date of his or her appointment. The health czar will simply resign from all her corporate boards and directorships and recuse herself from any issue that “would directly impact in a significant way any of the companies for which she was a director,” according to an anonymous administration official quoted by Politico.

White House spokesman Tommy Vietor stated that “”Nancy will recuse from each and every particular matter involving a specific company on whose board she served.””

Unfortunately, it’s not so simple. It’s hard to imagine any health care reform-related issue that won’t involve one of DeParle’s vast array of former employers, clients, and corporate boards in the health care industry.

She earned at least $376,000 from Cerner Corporation., for example, which specializes in health information technology. As health czar, DeParle will have unmeasured clout in directing $19 billion of federal stimulus money earmarked for, yes, health information technology. GOP Rep. Congressman Darrell Issa of California stated the obvious: “There’’s no question that there will be a large presidential earmark for integrating a data system to try to reduce costs to try to put people’’s health records all into a single data base. A lot of these efficiencies, although merited, are going to lead to picking very large multibillion dollar winners, and she’’s going to be at the center of it all.” Financial writer Richard Gibbons notes that Cerner’s annual revenues are about $1.7 billion, “so even a fraction of the $19 billion can make a huge difference to Cerner’s bottom line.”

Nevertheless, liberal Beltway supporters see no reason for concern. An article in The Hill, quoting various ethics experts giving the health czar a pass, declared, “DeParle’s industry ties a non-issue.” Would these ethics experts have been equally sanguine if the Bush Administration had appointed a drug industry official to head up the Food and Drug Administration or an oil executive to head up the Department of Energy?

See what others have said

Note from Michelle: This section is for comments from michellemalkin.com's community of registered readers. Please don't assume that I agree with or endorse any particular comment just because I let it stand. A reminder: Anyone who fails to comply with my terms of use may lose his or her posting privilege.

Trackbacks

  1. Dear White House: Look whos funded by the health care industry - US Message Board - Political Discussion Forum
  2. Democrats: Fellow Citizens, Just Shut Up! « NEOAVATARA
  3. Founding Bloggers
  4. Founding Bloggers
  5. Bush Vs. Obama – Wiretapping Terrorists Vs. Spying on Citizens: Major Upate | The Substratum
  6. The Snooper Report
  7. We have to face the fact that the President is not an honest guy « Jim Blazsik
  8. The real meaning of “grassroots” – according to BarryO and the DNC « Sister Toldjah
  9. Hmm, Claire McCaskill Thinks Otherwise « Mcnorman’s Weblog
  10. Health Care BS - HEALTH CARE AND THE TIES THAT BLIND
  11. Obama’s Failed Experiment after Just 200 Days: Socialized Health Care Doomed to Fail (video) « Frugal Café Blog Zone
  12. Of Town Halls, Health Care & The Unglued American Left | Stephen Kruiser
  13. Michelle Malkin » Um, who’s bought and pay for by the drug lobby?
  14. Michelle Malkin » Um, who’s bought and paid for by the drug lobby?
  15. The evil drug lobby and ObamaCare! « The Daley Gator
  16. Michelle Malkin » White House: You’re not un-American, but you are still corporate shills so just pipe down
  17. Ironic Surrealism v3.0 » Obama Town Hall Portsmouth New Hampshire 8-11-09 [Full Transcript]
  18. » Health Czar: Nancy-Ann DeParle NoisyRoom.net: Where liberty dwells, there is my country…
  19. Talk about “Astroturfing”! « Sister Toldjah
  20. Nearing the Socialist Rat Hole… Obama’s Radical Past: Sean Hannity’s Disturbing POTUS Exposé (6-part video) « Frugal Café Blog Zone
  21. Michelle Malkin » Axelrod’s profits: Uh, who’s on the take from the drug lobby again?!?!
  22. Ed Driscoll » Obanomics And Health Care, Then And Now
  23. David Axelrod On the Take From Drug Lobby Firm? Barack Obama’s own Senior Adviser and Chief Astroturfer Raked in MILLIONS of Dollars from Big Pharma! « Romanticpoet’s Weblog
  24. Look who is on the take again! « The IUSB Vision Weblog
  25. Michelle Malkin » Corporate Shills for Hope and Change
  26. Fascist Nightmare: Obama’s Back Room Deals with Big Pharma… Obama’s Relationship with Drug Companies Exposed (video) « Frugal Café Blog Zone
  27. Canadian Doctor Interview: ObamaCare Will Skyrocket Health Care Costs, Rationing (video) « Frugal Café Blog Zone
  28. News for 08/20/2009- Obama Funds Drilling off Brazil, Bogus Obamacare Poll, Acorn and Your Diet, Cost of Healthcare in UK Telling « Soldier For Liberty
  29. Best Quote of the Week Against ObamaCare… from the UK « Frugal Café Blog Zone
  30. He Lobbys; He Regulates; He Collects $2 Million for His Efforts: David Axelord, Reformer | Chicago Daily Observer
  31. Obama’s Tanking Mess: Negative 14 Approval Brought on by Loaning Brazil Billions for Offshore Oil Drilling, Secret Big Pharma Deals, ObamaCare’s Mandates, Townhall Thuggery, Spamming « Frugal Café Blog Zone
  32. Michelle Malkin » Culture of corruption: Daschle edition

Trackback URL

Comments


  1. #768529
    On August 6th, 2009 at 10:25 am, prendad said:

    Gibbs needs to do his homework or read Michelle’s book before opening his mouth.

  2. #768531
    On August 6th, 2009 at 10:27 am, verogolfer said:

    Everybody, not just Gibbs, should read Michelle’s book before opening their mouth.

  3. #768541
    On August 6th, 2009 at 10:35 am, Laree said:
  4. #768542
    On August 6th, 2009 at 10:35 am, Truesoldier said:

    Perhaps Obama should change his executive order to read that their will be no revolving door hiring in his administration except for when the party shares his beliefs.

  5. #768543
    On August 6th, 2009 at 10:36 am, corkie said:

    On August 6th, 2009 at 10:35 am, Laree said:

    That guy’s voice impression of Obama is AWESOME!

  6. #768544
    On August 6th, 2009 at 10:36 am, JohnnyD said:

    White House spokesman Tommy Vietor stated that “”Nancy will recuse from each and every particular matter involving a specific company on whose board she served.””

    Yeah, right. And I just saw a pig with lipstick fly by my window.

    The more of this crap I see, the more cynical I get.

  7. #768545
    On August 6th, 2009 at 10:38 am, moonsbreath said:

    Of course it doesn’t matter that Rick Scott was never investigated nor was he accused of any wrong doing.

  8. #768549
    On August 6th, 2009 at 10:39 am, DesertLover said:

    Do as I say …
    Not as I do …

    That is the BO Administration Mantra and Gibbs is just a White House mouthpiece reciting scripted talking points without a teleprompter …

  9. #768551
    On August 6th, 2009 at 10:40 am, no2pcbs1 said:

    bobby gibbs is obviously an idiot and is not prepared intellectually to argue when the facts are so clear. in the battle of brain power, gibbs is unarmed.

  10. #768559
    On August 6th, 2009 at 10:45 am, Paul Revere said:

    Projection, but projection with a boomerang effect this time thanks to stalwarts like Mrs. Malkin.

  11. #768563
    On August 6th, 2009 at 10:47 am, rplatt said:

    The Obama administration is a lie within a lie within a lie . . . and with this much subterfuge, I doubt they even know when they are lying. They are much like the mighty ‘Oz” that when exposed was nothing but a very small, meek and confused man with no power or authority.

  12. #768568
    On August 6th, 2009 at 10:52 am, JohnnyD said:

    Culture of Corruption

    Ya know, maybe the title of Michelle’s #1 best seller should have been the Audacity of Corruption. Because, it seems that this administration is just plain deaf to all of the facts. Did they think no one would notice? Or, did they just not care?

    “We Won!” That’s audacious alright.

  13. #768572
    On August 6th, 2009 at 10:55 am, Bob69 said:

    can I copy this information and send it to flag@whitehouse. gov????

  14. #768574
    On August 6th, 2009 at 10:56 am, stillontheroad said:

    I look at it mthis way, These vermin called down the lightning and now they have got it. Piglosi accusing people attending Town Hall Meetings wearing Swastikas is just another reason to keep my anger up and my mouth open. They have not heard nothing yet.

  15. #768578
    On August 6th, 2009 at 11:01 am, BurnedOutHippie said:

    Michelle, you are as courageous as when George Washington rounded up a bunch of ragamuffins and took on the British army. You are the best and deserve a spot on Mount Rushmore.

  16. #768590
    On August 6th, 2009 at 11:09 am, collinb said:

    Shall we report this casual conversation to the white house as disinformation?

    Collin

  17. #768598
    On August 6th, 2009 at 11:14 am, ThatSamIAm said:

    It’s the daily dose of hypocrisy from the socialist progressive democrats.

    Lobbyist for you = bad. Lobbyist for socialism = good.

    You have to be transparent in all you do. We will say we are tranparent but hide everything and try to slide it past the American people without debatet.

    Your supporters are manufactured mobs. Our supports brought in by Acorn and huge labor unions are just concerned citizens organizing.

    The democrats will lie, cheat and steal at every turn and at the same time call you a liar a cheat and a thief.

    If you are a socialist progressive democrat you are pathetic.

  18. #768600
    On August 6th, 2009 at 11:17 am, cheapseat said:

    dollar bill jefferson noticed yesterday. now if he really goes to a real prison and meets his roomate lawrence “aka skinhead larry” who proudly displays his skin art of three tears under each eye, most of the congress would immediately get religion and quit taking bribes. i know, they call them campaign contributions, but we all know what they are. oh congressman, i’m here to talk to you about your support of obamacare, and my aarp group contributed x million dollars to your campaign last year, and we really need your help passing this wonderful bill. that is just lanny davis speak for if you don’t do as we say, you won’t get that dough again. hmmm.

  19. #768628
    On August 6th, 2009 at 11:42 am, lgm said:

    Just for balance, you should report that those disruptions of Democrats’ townhall meetings are being coordinated by public relations firms for the health insurance industry. (no link provided, google it yourself)

  20. #768630
    On August 6th, 2009 at 11:43 am, Misscheryl said:

    Does this surprise anyone?

    Tar.Feather.Poles.

  21. #768638
    On August 6th, 2009 at 11:47 am, Danceswithdachshunds said:

    lgm said:…(no link provided, …

    That pretty much sums up what you have in the evidence department.

  22. #768641
    On August 6th, 2009 at 11:47 am, Misscheryl said:

    11:42 am, lgm said:
    Just for balance

    just for balance lgm, take your medication.

  23. #768666
    On August 6th, 2009 at 12:04 pm, b-cat said:

    On August 6th, 2009 at 11:42 am, lgm said:
    Just for balance, you should report that those disruptions of Democrats’ townhall meetings are being coordinated by public relations firms for the health insurance industry. (no link provided, google it yourself)

    First it was a bunch of racist rednecks. Then it was the insurance industry. Now its swastika wearing stormtroopers. You missed the talking points this morning.

  24. #768675
    On August 6th, 2009 at 12:09 pm, Misscheryl said:

    b-cat – funny, first they laughed because there weren’t many of us…now we’re the mob! Sticks and stones…

  25. #768696
    On August 6th, 2009 at 12:25 pm, nail49 said:

    google it yourself

    lgm: I tried, but my firewall won’t allow me to go to any Kos-related sites!

  26. #768718
    On August 6th, 2009 at 12:34 pm, JonB said:

    lgm, put up or shut up. Seems every other day or so, someone is having to challenge you to post solid links to support your lunacy, but you never do. You are a farce.

  27. #768816
    On August 6th, 2009 at 1:19 pm, John Deaux said:

    On August 6th, 2009 at 11:42 am, lgm said:

    I contend that Obama spent most of his college time on academic probation and graduated with a 2.0 average.

    Prove me wrong. I dare you.

  28. #768837
    On August 6th, 2009 at 1:29 pm, Flyoverman said:

    This is all so confusing…..

    Could the White House please provide me list of any group or individuals who oppose Obama’s policies who are NOT evil?

    Maybe some enterprising reporter could ask Gibbs or the President that question, because apparently in their minds there are no people or groups that can simply have another opinion.

    It must be hard for the Dear Leader to arise each day in all of his magnificence and deal with so many evil or deranged people.

  29. #768846
    On August 6th, 2009 at 1:36 pm, Flyoverman said:

    On August 6th, 2009 at 11:42 am, lgm said:
    Just for balance, you should report that those disruptions of Democrats’ townhall meetings are being coordinated by public relations firms for the health insurance industry. (no link provided, google it yourself)

    lgm, I agree and they are incredibly organized. They are so organized that according to Barbara Boxer they even enforce a dress code…… a sure sign of planted stooges.

    I’ll be off for a while. I need to put another layer of tin foil on the walls in the den so the NSA can’t spy on my computer.

  30. #768860
    On August 6th, 2009 at 1:42 pm, John Deaux said:

    On August 6th, 2009 at 1:36 pm, Flyoverman said:

    I’ll be off for a while. I need to put another layer of tin foil on the walls in the den so the NSA can’t spy on my computer.

    NOOOO!

    That’s just what they want you to do. It actually strengthens the signal!

  31. #768909
    On August 6th, 2009 at 2:02 pm, Flyoverman said:

    On August 6th, 2009 at 1:42 pm, John Deaux said:

    Snifff….. You saved me man. They would have found me if I had put that up.

  32. #768917
    On August 6th, 2009 at 2:05 pm, Flyoverman said:

    I contend that Obama spent most of his college time on academic probation and graduated with a 2.0 average.

    Somewhere out there is the smoking gun. The guy who wrote Obama’s papers and did his homework in college and law school.

    There’s no way that idiot graduated without major help.

  33. #768923
    On August 6th, 2009 at 2:07 pm, spaceycakes said:

    c’mon, people! lgm can’t get his Fisher-Price pc to google anything today.

    Do it for the kids!

  34. #768934
    On August 6th, 2009 at 2:11 pm, nail49 said:

    There’s no way that idiot graduated did anything without major help.

    Flyoverman: FIFY

  35. #769038
    On August 6th, 2009 at 2:55 pm, Paul Revere said:

    Michelle, you bolted ABC to #1 on Sunday. It’s the only explanation. YOU! From Drudge…

    SUNDAY UPSET: Stephanopoulos Beats Gregory Total Viewers

    ABC THIS WEEK: 2,800,000
    NBC MEET THE PRESS 2,770,000
    CBS FACE THE NATION 2,310,000

  36. #769074
    On August 6th, 2009 at 3:07 pm, Misscheryl said:

    Fly, does tin foil really work?

  37. #769083
    On August 6th, 2009 at 3:11 pm, nail49 said:

    does tin foil really work?

    Misscheryl: It helps my rabbit ears make Captain Kangaroo’s image much sharper in the mornings!

  38. #769120
    On August 6th, 2009 at 3:25 pm, mytake said:

    I just went to the AARP sites and there is no way to register any complaints about their stance on government run health care. If anyone here can break through to get their attention, would you please advise me.

  39. #769126
    On August 6th, 2009 at 3:26 pm, tiredofit08 said:

    the wise latina is now confirmed and will be sworn in quickly…God help us all…

  40. #769128
    On August 6th, 2009 at 3:28 pm, tiredofit08 said:

    By Mail

    AARP
    601 E Street N.W.
    Washington, DC 20049

    By Phone

    Contact Center Hours
    7:00 a.m. to 11:00 p.m. ET
    Monday through Friday

    Toll-Free Nationwide: 1-888-OUR-AARP

    (1-888-687-2277)

    Toll-Free TTY: 1-877-434-7598
    Toll-Free Spanish: 1-877-MAS-DE50

    (1-877-627-3350)
    International Calls: 1-202-434-3525

  41. #769160
    On August 6th, 2009 at 3:43 pm, tiredofit08 said:
  42. #769174
    On August 6th, 2009 at 3:48 pm, sonofdy said:

    LGM did miss the talking points memo, it is now GOP funded think tanks.

  43. #769212
    On August 6th, 2009 at 4:08 pm, mytake said:

    DNC sponsoring ads on radio to call Glenn Nye, Virginia Beach district Congressman and tell him you support Obamacare. If any of you are in his district give him an earfull. Since I’m in the adjacent district he won’t take my e-mail or listen to my phone diatribe. Keep his phones busy, please.

  44. #769221
    On August 6th, 2009 at 4:12 pm, Misscheryl said:

    lgm, lookie here (from RealClearPolitics):

    A rather surprising finding from the newly released CNN poll. Question three on the national survey of 1,136 adults (which includes an oversample of African-Americans) asks, “Do you consider the first six months of the Obama administration to be a success or a failure?”

    Thirty-seven percent (37%) said they believe the Obama administration is a “failure,” while 51% consider it a “success” and 11% say it’s still “too soon to tell.”

    An identical question was asked of the Bush administration in an August 2001 CNN/Gallup/USA Today survey. At the time, 56% said the Bush administration was a “success” while only 32% considered it a “failure.”

  45. #769342
    On August 6th, 2009 at 5:00 pm, historybot said:

    Excuse me for asking… but why shouldn’t I be suspect of someone who works for the industry and whose company was fined $1.7 billion for fraud? Those seem like legitimate concerns to me. I would find those things suspect regardless of any political affiliation.

  46. #769678
    On August 6th, 2009 at 8:45 pm, herself said:

    But but – I DO have a connection with the pharmaceutical industry. I’m a patient.

    {O.O}

You must be logged in to post a comment.

Saturday in the Senate: Cash for Cloture; Reid gets 60

November 21, 2009 03:22 PM by Michelle Malkin

38 Comments | 2 Trackbacks

The Demcare bribe list

November 20, 2009 11:17 AM by Michelle Malkin

139 Comments | 8 Trackbacks

Payoffs from A to Z.

Rejected AARP solicitation form of the day

November 19, 2009 08:28 AM by Michelle Malkin

36 Comments | 0 Trackbacks

Protesting Pelosicare in her own backyard

November 16, 2009 10:37 AM by Michelle Malkin

21 Comments | 1 Trackback

Ho-hum: Pelosicare hikes costs $289 billion

November 14, 2009 10:40 PM by Michelle Malkin

42 Comments | 5 Trackbacks

How Chris Dodd is exploiting the flu “crisis”

November 11, 2009 01:09 PM by Michelle Malkin

27 Comments | 0 Trackbacks

Hold still. It’s gonna hurt.

Here comes Harrycare!

November 11, 2009 01:12 AM by Michelle Malkin

42 Comments | 2 Trackbacks


Categories: Double standards, Health care, Tea Party



Legal Insurrection

» Yes, It Really Is That Bad
Follow me on Twitter Follow me on Facebook