The Care/Profit Tradeoff in Health Care
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.