Doing good at whose expense?
A moral dilemma
I recall a number of years ago talking with a professional fund raiser who had been employed by a hospital in a city in which I was living. His job was to raise money for a state of the art holistic fitness and rehabilitation facility. I asked this young man how he would respond if someone with a history of treating employees poorly (poor pay, unsafe/unhealthy working conditions) offered to make a donation? This college educated man did not understand why this question would have anything to do with his responsibilities to his employer who was a private contractor hired the hospital board. The hospital apparently did not hesitate to accept a rather large donation from such a person – a donation so large it earned the donor the “honor” of having the health care facility named after him. Clearly the money was put to good use and the very kind staff of this facility have expertly and lovingly facilitated the health and healing of many members of the community.
I was thinking of his ancient history when I read a May 30, 2018 column in The Intelligencer, Wheeling News-Register entitled “Beyond Astronauts and Engineers” by Heather Bresch who is the chief executive officer of Mylan Pharmaceuticals. In this article, she details the announcement of “an exciting collaboration between Mylan and the university.” (West Virginia University in Morgantown, West Virginia). She explains the collaboration “to develop an initiative to inspire the state’s children to reimagine their futures by true and meaningful exposure to Science Technology Engineering and Math (STEM) and encouraging them to be Curious, Active. Resilient and Engaged (CARE).”
Any help we can give to encourage children to reimagine their futures is a laudable goal. Surely, we could take our hats off to Ms. Bresch and Mylan for this investment in the children of West Virginia. Yet, I could not help but recall that Mylan is the company which in 2016, without having to spend a penny changing or developing the drug Epinephrine (Epipen), raised the price to an average of $600.00. Later that price was lowered - the lowest GoodRX price was later $147.98 with an average price of $380.00. I could not easily find info on today’s average price. In 2016 CNBC reported that the Epipen actually cost several dollars to make. I found estimates as low as $16.00 and as high as $30.00. The Epipen is a very effective antidote for people with certain life-threatening allergies. Many parents are urged to have multiple packs at home and school for their children. Many adults also depend on these lives saving devices.
The company reported $9.45 billion in revenue for 2015 — up from $7.7 billion the year before — and $1.46 billion in income. A reported $1 billion in revenue came from EpiPen, up from the $200 million in revenue at the time Mylan first acquired the device. The most recent compensation package I could find for Ms. Bresch was for 2016 (www1.salary.com)- nearly 13.3 million dollars although her base pay was a mere $1,300,000.00.
It is not my intent to present a detailed economic analysis of the health care system in the United States or to present an argument for or against the current economic system which rewards a few (around 1 %) with a major share of the wealth of this country. There are economist and philosophers who are better equipped to do that in a format which is designed for those doing serious research or analysis. It is my intention to question the system of allowing a relatively small group of people to become wealthy at the expense of employees and customers and then to laud them for using some of this “blood” money to fund research, build libraries or fitness centers or other programs and facilities which are designed to help heal the very people which are injured and/or destroyed by those who donate the money.
As any reader of my blog knows I am not in favor of punishment, but I am in favor of accountability and an attempt – as best we can as humans – to walk the talk. Perhaps universities, hospitals and other organization need to question whether it is ethical or moral to accept money which has been made, in part at least, by mistreating employees or customers. Yes, I know that companies such as Mylan have programs to provide assistance to a limited number of customers who are most in need, but why not just charge 20% over cost for products such as the Epipen? How many children and adults would that help? There are many other highly priced medications which Mylan and other companies manufacture and sell. Often, they blame the high price on research and not on hihh compensation package for the CEO and other executives and/or a higher return to those who own stock in a company.
What are the core values we want to teach our children? What does it mean to walk the talk?
Written May 31, 2018
A moral dilemma
I recall a number of years ago talking with a professional fund raiser who had been employed by a hospital in a city in which I was living. His job was to raise money for a state of the art holistic fitness and rehabilitation facility. I asked this young man how he would respond if someone with a history of treating employees poorly (poor pay, unsafe/unhealthy working conditions) offered to make a donation? This college educated man did not understand why this question would have anything to do with his responsibilities to his employer who was a private contractor hired the hospital board. The hospital apparently did not hesitate to accept a rather large donation from such a person – a donation so large it earned the donor the “honor” of having the health care facility named after him. Clearly the money was put to good use and the very kind staff of this facility have expertly and lovingly facilitated the health and healing of many members of the community.
I was thinking of his ancient history when I read a May 30, 2018 column in The Intelligencer, Wheeling News-Register entitled “Beyond Astronauts and Engineers” by Heather Bresch who is the chief executive officer of Mylan Pharmaceuticals. In this article, she details the announcement of “an exciting collaboration between Mylan and the university.” (West Virginia University in Morgantown, West Virginia). She explains the collaboration “to develop an initiative to inspire the state’s children to reimagine their futures by true and meaningful exposure to Science Technology Engineering and Math (STEM) and encouraging them to be Curious, Active. Resilient and Engaged (CARE).”
Any help we can give to encourage children to reimagine their futures is a laudable goal. Surely, we could take our hats off to Ms. Bresch and Mylan for this investment in the children of West Virginia. Yet, I could not help but recall that Mylan is the company which in 2016, without having to spend a penny changing or developing the drug Epinephrine (Epipen), raised the price to an average of $600.00. Later that price was lowered - the lowest GoodRX price was later $147.98 with an average price of $380.00. I could not easily find info on today’s average price. In 2016 CNBC reported that the Epipen actually cost several dollars to make. I found estimates as low as $16.00 and as high as $30.00. The Epipen is a very effective antidote for people with certain life-threatening allergies. Many parents are urged to have multiple packs at home and school for their children. Many adults also depend on these lives saving devices.
The company reported $9.45 billion in revenue for 2015 — up from $7.7 billion the year before — and $1.46 billion in income. A reported $1 billion in revenue came from EpiPen, up from the $200 million in revenue at the time Mylan first acquired the device. The most recent compensation package I could find for Ms. Bresch was for 2016 (www1.salary.com)- nearly 13.3 million dollars although her base pay was a mere $1,300,000.00.
It is not my intent to present a detailed economic analysis of the health care system in the United States or to present an argument for or against the current economic system which rewards a few (around 1 %) with a major share of the wealth of this country. There are economist and philosophers who are better equipped to do that in a format which is designed for those doing serious research or analysis. It is my intention to question the system of allowing a relatively small group of people to become wealthy at the expense of employees and customers and then to laud them for using some of this “blood” money to fund research, build libraries or fitness centers or other programs and facilities which are designed to help heal the very people which are injured and/or destroyed by those who donate the money.
As any reader of my blog knows I am not in favor of punishment, but I am in favor of accountability and an attempt – as best we can as humans – to walk the talk. Perhaps universities, hospitals and other organization need to question whether it is ethical or moral to accept money which has been made, in part at least, by mistreating employees or customers. Yes, I know that companies such as Mylan have programs to provide assistance to a limited number of customers who are most in need, but why not just charge 20% over cost for products such as the Epipen? How many children and adults would that help? There are many other highly priced medications which Mylan and other companies manufacture and sell. Often, they blame the high price on research and not on hihh compensation package for the CEO and other executives and/or a higher return to those who own stock in a company.
What are the core values we want to teach our children? What does it mean to walk the talk?
Written May 31, 2018
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