{ "docId": "019dd923-5ca1-7489-b639-45501f4b359b", "docSlug": "158df8627a0b9aca", "documentTitle": "Opioid Conflicts Majority Staff Report", "authorId": "McKinsey", "authorName": "U.S. House Committee on Oversight and Reform", "documentKindSlug": "consulting-deck", "documentKindLabel": "Consulting deck", "sourceTypeSlug": "strategy_consulting", "sourceTypeLabel": "Strategy consulting", "presentationDate": null, "orientation": "portrait", "aspectRatio": 0.773, "pageNumber": 48, "pageCount": 53, "prevPage": 47, "nextPage": 49, "slideType": "appendix_disclosure", "function": "appendix", "density": "overcrowded", "nDataPoints": 1, "notes": "This page contains footnotes 229-236.", "elementsJson": [ "paragraph", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-5ca1-7489-b639-45501f4b359b/48", "deckHref": "/decks/019dd923-5ca1-7489-b639-45501f4b359b", "deckJsonHref": "/decks/019dd923-5ca1-7489-b639-45501f4b359b.json", "deckAnchorHref": "/decks/019dd923-5ca1-7489-b639-45501f4b359b#slide-48", "components": [ { "bbox": null, "kind": "callout", "text": "Others at the firm raised limited concerns that this memo advocated positions favorable to McKinsey's private sector clients, but do not appear to have taken steps to prevent the memo from being sent.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd951-cdec-74db-b49e-4f2ae0908807", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.78, "x": 0.11, "y": 0.609 }, "kind": "disclaimer", "text": "229 MCK-HCOR-0096857, Slide 15.\n230 Centers for Medicare & Medicaid Services, Press Release: CMS Welcomes New Leadership Team, Makes Additional Staffing Announcement (July 24, 2018) (www.cms.gov/newsroom/press-releases/cms-welcomes-new-leadership-team-makes-additional-staffing-announcement).\n231 USASpending, Contract Summary for PIID 75FCMC18F0099 Between Department of Health and Human Services and McKinsey & Company (online at www.usaspending.gov/award/CONT_AWD_75FCMC18F0099_7530_GS10F0118S_4730) (accessed Feb. 23, 2022).\n232 Department of Health & Human Services, Press Release: HHS Secretary Azar Statement on Continuing Leadership Expansion (July 5, 2019) (online at https://public3.pagefreezer.com/browse/HHS.gov/31-12-2020T08:51/https://www.hhs.gov/about/news/2019/07/05/hhs-secretary-azar-statement-on-continuing-leadership-expansion.html).\n233 MCK-HCOR-0170799, Page 3; S. 2680, 115th Cong. (2018).\n234 MCK-HCOR-0170799, Page 3.\n235 Id.\n236 MCK-HCOR-0170785, Page 3.", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "860cac6e-2df4-4af7-b153-c3cf270ab896", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.06, "w": 0.78, "x": 0.11, "y": 0.116 }, "kind": "paragraph", "text": "experts, including Paul Mango, a McKinsey partner in the “Payor Provider” practice and expert in “ACA Reform.”229 In July 2018, Mr. Mango joined CMS as Chief of Staff to then-CMS Administrator Seema Verma, who had been appointed by former President Trump.230", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "23ea23f7-3171-4d12-bd37-45a0660a5237", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.78, "x": 0.11, "y": 0.512 }, "kind": "paragraph", "text": "One of the primary drafters of the memo appears to be a McKinsey junior consultant, Consultant 16, who until earlier that year served as a consultant at Purdue.236 While consulting for Purdue, Consultant 16 had worked on “innovative contracting”—McKinsey’s term for", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "78d88233-dea6-4031-95ae-c966a6130651", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.06, "w": 0.78, "x": 0.11, "y": 0.184 }, "kind": "paragraph", "text": "According to federal spending data, in September 2018, McKinsey won a contract at CMS valued at $8.6 million—its first contract at CMS in six years.231 In July 2019, Secretary Azar named Mr. Mango his Deputy Chief of Staff for Policy, a position he served in until the end of the Trump Administration.232", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a212220d-ad7b-4bb4-9456-d10e0885f040", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.06, "w": 0.78, "x": 0.11, "y": 0.309 }, "kind": "paragraph", "text": "In October 2018, McKinsey consultants prepared an unsolicited policy memo for HHS and CMS on opioids. Others at the firm raised limited concerns that this memo advocated positions favorable to McKinsey’s private sector clients, but do not appear to have taken steps to prevent the memo from being sent.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e3f5b9f4-aca0-4a83-9763-62ad22ad39c7", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.09, "w": 0.78, "x": 0.11, "y": 0.393 }, "kind": "paragraph", "text": "On October 23, 2018, a McKinsey consultant in the health care practice internally shared a “perspective memo” on the Opioid Crisis Response Act (OCRA), a broad bipartisan bill that directed funding to federal agencies to establish or expand programs dealing with substance use disorder prevention, treatment and recovery.233 The McKinsey consultant noted that her team “would like to share it with senior folks at HHS and potentially Seema,”234 likely a reference to CMS Administrator Seema Verma.235", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ff7778d9-e627-41a6-b6a9-0557ef7d1821", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.54, "x": 0.23, "y": 0.274 }, "kind": "title", "text": "2. McKinsey Prepared an Unsolicited Opioid Policy Memo for HHS", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e57b7053-3f63-4922-a183-4ee5b20b14e1", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 53, "from": 29, "beatId": "1170eac2-9202-4b41-a53c-edbd934ded10", "arcName": "Problem-Agitate-Solution", "arcSlug": "problem-agitate-solution", "beatName": "Impact & Next Steps", "beatSlug": "consultants-gambit-impact-next-steps", "evidence": "The document concludes with implications of McKinsey's actions and potential next steps for regulatory action.", "position": 2, "confidence": 0.8, "parentBeatName": "Resolution", "parentBeatSlug": "resolution" } ], "loops": [ { "to": 53, "from": 1, "name": "Cost Of Inaction", "slug": "27-cost-of-inaction", "bestFor": "Urgent budget requests, compliance, risk mitigation", "matchId": "ee9686db-f8b5-4bc9-bf6e-2d29966ee033", "evidence": "The document implies the cost of inaction through its presentation of McKinsey's conflicts of interest and their potential impact on the opioid epidemic.", "position": 0, "objective": "What is the cost of inaction in addressing McKinsey's conflicts of interest?", "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point", "confidence": 0.7, "description": "Quantify what happens if the audience does nothing" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }