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

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?

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Posted in: Double standards,Health care,Tea Party

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Comments

#1

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

On August 6th, 2009 at 10:27 am, verogolfer said:

Everybody, not just Gibbs, should read Michelle’s book before opening their mouth.
#3

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

Obama debunks birther and vampire conspiracy.
#4

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

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

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

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

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

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

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

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

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

On August 6th, 2009 at 10:55 am, Bob69 said:

can I copy this information and send it to flag@whitehouse. gov????
#14

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

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

On August 6th, 2009 at 11:09 am, collinb said:

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

Collin
#17

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

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

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

On August 6th, 2009 at 11:43 am, Misscheryl said:

Does this surprise anyone?

Tar.Feather.Poles.
#21

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

On August 6th, 2009 at 3:07 pm, Misscheryl said:

Fly, does tin foil really work?
#37

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

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

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

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

On August 6th, 2009 at 3:43 pm, tiredofit08 said:

off topic…dear leader to pass law to search laptops/pc’s at the border…

http://atlasshrugs2000.typepad.com/atlas_shrugs/2009/08/obama-passing-new-law-to-allow-searching-of-pcs-laptops-and-media-devices.html
#42

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

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

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

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

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}