McKinsey to pay millions for US opioid crisis role
February 4, 2021
Consultancy firm McKinsey had advised pharma giants who were blamed for stoking the sales of prescription opioids. The company says it "deeply" regrets not adequately facing the consequences of the crisis.
One way to avert opioid pharmaceuticals usage — a police disposal box in OhioImage: Keith Srakocic/AP/dpa/picture alliance
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The US-based consultancy firm McKinsey on Thursday reached settlements worth $573 million (€476 million) for its role in country's opioid epidemic.
A total of 47 US states, the District of Columbia and five US territories are set to receive the cash to help them tackle the crisis.
Washington's attorney general announced a separate deal for $13.5 million and West Virginia announced a $10 million settlement.
Between 1999 and 2018, almost half a million Americans died in overdoses from prescription painkillers and illegal opioids, according to an estimate by the US Centers for Disease Control and Prevention.
Prescription opioid painkillers fueled the crisis alongside illegal drugs such as heroin and illicit fentanyl.
The only US state not to announce a deal with the company is Nevada.
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McKinsey worked to counter 'emotional messages'
McKinsey's long worked with Purdue Pharma to boost sales of opioid painkiller Oxycontin even as the extent of the opioid epidemic became clear. Their relationship was revealed in legal documents that were made public as part of Purdue Pharma's efforts to settle claims against it through bankruptcy court.
Some documents showed it was trying to "supercharge" flagging Oxycontin sales in 2013.
The documents revealed that McKinsey also encouraged Purdue sales representatives to focus on doctors who already prescribed high volumes of Oxycontin and to try to move patients to more potent doses of the drug.
In one instance, reported the NYT, documents on the firm Purdue Pharma indicated that McKinsey consultants had worked with it to counter "the emotional messages from mothers with teenagers that overdosed."
Cincinnati, 2017: A paramedic administers an antidoteImage: John Minchillo/AP/dpa/picture alliance
The reaction so far
New York Attorney General Letitia James announced: "Under the terms of today's agreement, the company will finally end its illegal conduct, deliver more than half a billion dollars into communities across the nation and will never be able to help perpetrate this type of fraud and deception again."
"Even though no amount of money can bring back the lives lost, I hope our settlement provides funding for programs to help those battling opioid addiction," Arizona Attorney General Mark Brnovich said in a statement Thursday.
Following James' announcement, McKinsey Global's managing partner Kevin Sneader said: "We deeply regret that we did not adequately acknowledge the tragic consequences of the epidemic unfolding in out communities."
"We hope to be part of the solution to the opioid crisis in the US," Sneader added.
Reports in US newspapers stated the global consultancy firm would not admit wrongdoing for its role in advising pharmaceutical giants. The goal of the settlement was to avoid civil lawsuits filed in recent years by state and local governments as the US opioid crises unfolded.
Most of the payments will come within the next two months under the multi-state agreement.
On the front line of the opioid epidemic in the US
Cheryl, a 71-year-old woman from Phoenix, has adopted her 3-year-old great-grandniece Jessie, who was an addict before she was even born, suffering from drug withdrawal symptoms at birth. Eline van Nes reports.
Image: Reuters/B. Snyder
Going out for the day
While Jessie sits in her car seat, Cheryl takes out the baby stroller to be able to push Jessie around through the shopping mall. Cheryl doesn't take Jessie to the mall often because it's tiring to go on these trips. She prefers staying at home, or they go to the nearby playground. They often visit Jessie's biological sister who lives two doors down.
Image: DW/E. Van Nes
Catching her breath
Raising a 3-year-old as a 71-year-old is a lot to ask for. The number of grandparents taking care of their grandchildren in the US because their parents are addicted to drugs, specifically opioids, is increasing. According to recent studies, around 12 percent of children in Arizona live with relatives, almost 9 percent of those live with their grandparents.
Image: DW/E. Van Nes
Sitting on a bunch of admin
On July 9, the Supporting Grandparents Raising Grandchildren Act was signed into law. It's designed for grandparents who need information and assistance on issues in dealing with legal custody, available social services, and mental health counseling. One problem, however, is that relatives who take care of a child don't get the same amount of financial support that foster care families do.
Image: DW/E. Van Nes
A little joy goes a long way
Jessie was apprehensive about riding the merry-go-round for the first time. When Cheryl was buying the tickets, the vendor asked about Jessie. Cheryl said that Jessie was her own daughter. She thinks Jessie's biological mother is still alive, but doesn't know where she is or if she's in rehab. "The last time she was seen was in the fall of last year. Rumor has it that she was in Mesa."
Image: DW/E. Van Nes
Finding a way to make it work
Cheryl knows that because of her age she probably won't be around when Jessie grows up. She has some physical problems and Jessie does wear her out, but she doesn't see a problem there. She believes it's important Jessie is around family and not in the care of strangers. Her son will take care of Jessie after Cheryl's gone.
Image: DW/E. Van Nes
Sunday school
Every Sunday, Cheryl and Jessie go to a Presbyterian church. Jessie is too young to attend the sermon so she goes to Sunday school. After the sermon, Cheryl and Jessie join other families for snacks in a large auditorium. The church has always been supportive of Cheryl. She has lost three husbands and a son due to a drug overdose. Cheryl believes taking care of Jessie is her last calling.
Image: DW/E. Van Nes
Pushing Mommy around
Cheryl has permanent damage to her back and also suffers from arthritis in her hands and sciatica in both legs. She wears a back brace to help relieve the pain. To be able to cope with the pain, she takes painkillers and other medicines. She can't do without — especially with a young toddler pushing her around.
Image: DW/E. Van Nes
It's my party
It's Jessie's third birthday. Only a few guests have been invited, so that it doesn't get too busy for Jessie. Jessie's mother had two other children: Jessie's older sister, who's in the care of Cheryl's brother and his wife. But they couldn't handle more than that. Jessie's little brother has been adopted by a foster family.
Image: DW/E. Van Nes
Taking it easy
Just before Jessie's mother went into labor, she had another hit of methamphetamine. After Jessie was born she was crying and screaming and twitching — typical withdrawal signs. Since then, Jessie has had to cope with a raft of health problems as a result of the drug abuse during pregnancy. Doctors are still monitoring her to see if there is any permanent damage.
