The Care/Profit Tradeoff in Health Care

The tradeoff is an old theme here, and of continuing relevance.  Via Yves Smith, news of a settlement related to investors’ role in pushing for quick gains in a firm:

As Hospira was promising to address issues raised by the U.S. Food and Drug Administration following inspections, the plaintiffs said the company was “making the problems worse by gutting quality control efforts through cost cutting aimed at boosting short-term profitability.” The lawsuit said those cost-cutting moves stemmed from a March 2009 initiative called “Project Fuel” intended to increase shareholder value by eliminating underperforming . . . units and reducing its global workforce.

The goal of immediate maximization of “shareholder value” is increasingly under attack,  even by its ostensible masters.  Add “Project Fuel” to that fire.

 

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