{ "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": 49, "pageCount": 53, "prevPage": 48, "nextPage": 50, "slideType": "appendix_disclosure", "function": "appendix", "density": "dense", "nDataPoints": 0, "notes": "This appears to be a page from a formal report or legal document, indicated by the footnote numbering and page number at the bottom.", "elementsJson": [ "paragraph", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-5ca1-7489-b639-45501f4b359b/49", "deckHref": "/decks/019dd923-5ca1-7489-b639-45501f4b359b", "deckJsonHref": "/decks/019dd923-5ca1-7489-b639-45501f4b359b.json", "deckAnchorHref": "/decks/019dd923-5ca1-7489-b639-45501f4b359b#slide-49", "components": [ { "bbox": null, "kind": "callout", "text": "I started reading your memo and will confess that I'm a bit puzzled... Is this memo part of a client engagement? A roundabout way of submitting an LOP [letter of proposal] for a future engagement?", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd951-cdec-74db-b49e-a0bd4618e0bf", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.215, "w": 0.766, "x": 0.117, "y": 0.417 }, "kind": "paragraph", "text": "After receiving clarification that the memo was not part of client engagement or a proposal, Ms. Rosen responded. “Apropos your original question about whether the memo needs additional review, the answer is no. In fact, given that the memo is being sent from a CST [client service team] to a client (even a public-sector client), there is no reason that either [Ms. Lane] or I would have to risk-review it.” Ms. Rosen continued: I didn’t spot anything particularly risky in the memo, given the bad press the firm has received because of south Africa and, especially, Saudi Arabia, my personal view is that for the time being we should minimize the number of things we send to public-sector clients (other than engagement deliverables). But people with pay grades far above mine have decided differently, and their judgment wins.241", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "6a074917-6e70-4f57-bbae-122c283791d4", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.042, "w": 0.766, "x": 0.117, "y": 0.117 }, "kind": "paragraph", "text": "contracts that would, in part, provide insurers and pharmacy benefit managers a rebate “for every OxyContin overdose attributable to pills they sold.”237", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "78bdcc48-adc1-4ad5-be3c-e5a7d0e07637", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.145, "w": 0.766, "x": 0.117, "y": 0.169 }, "kind": "paragraph", "text": "The McKinsey health care practice team shared the OCRA policy memo with Ellen Rosen, McKinsey’s Global Manager of Publications, and Julie Lane, the Global External Relations Manager of the health care practice, who, according to a “modified risk review process” devised by the team “were supposed to “make sure (sic) no big red flags.”238 This process also included, “eliminat[ing] any logos or other forms of branding from the memos,” and having “1 thought partner from each sector read each memos [sic].”239 Upon review of the memo, both Ms. Rosen and Ms. Lane raised concerns about the utility and propriety of sharing the memo with HHS and CMS.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d8a328eb-bfa8-41f5-b866-bb2e7ff9e8e2", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.085, "w": 0.766, "x": 0.117, "y": 0.323 }, "kind": "paragraph", "text": "On October 29, 2018, Ms. Rosen wrote back to one of the memo’s drafters, “I started reading your memo and will confess that I’m a bit puzzled... Is this memo part of a client engagement? A roundabout way of submitting an LOP [letter of proposal] for a future engagement? Otherwise, why are we giving advice to a federal agency about a federal law, especially since we are not lawyers?”240", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "eba4d23a-94af-41fa-90dc-3825c0d1d070", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "I didn't spot anything particularly risky in the memo, given the bad press the firm has received because of south Africa and, especially, Saudi Arabia, my personal view is that for the time being we should minimize the number of things we send to public-sector clients (other than engagement deliverables). But people with pay grades far above mine have decided differently, and their judgment wins.", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd951-cdec-74db-b49e-a59aaec6b8a1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.265, "w": 0.766, "x": 0.117, "y": 0.675 }, "kind": "source-note", "text": "237 See McKinsey Settles for Nearly $600 Million over Role in Opioid Crisis, New York Times (Feb. 3, 2021) (online at www.nytimes.com/2021/02/03/business/mckinsey-opioids-settlement.html); MCK-HCOR-0000246; MCK-HCOR-0000251; MCK-HCOR-0001019, Pages 6-11. 238 MCK-HCOR-0170785, Page 3. 239 Id. 240 MCK-HCOR-0170799, Page 2. 241 Id., Page 1. (emphasis added). McKinsey’s work for foreign governments had come under scrutiny that month after reports that the Saudi Arabian government may have used a McKinsey report to identify and jail dissidents. See Saudis’ Image Makers: A Troll Army and a Twitter Insider, New York Times (Oct. 20, 2018) (online at www.nytimes.com/2018/10/20/us/politics/saudi-image-campaign-twitter.html?dlbk). McKinsey was also embroiled in a corruption scandal related to its work for the South African government which journalists credited to the firm’s “aggressive push into more government consulting.” See How McKinsey Lost Its Way in South Africa, New York Times (June 26, 2018) (online at www.nytimes.com/2018/06/26/world/africa/mckinsey-south-africa-eskom.html).", "attrs": { "numbered": true }, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "76ee48ab-b899-448e-8ef9-3e75e2ad1995", "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 }