bringing bad things to life

Bringing Bad Things to Bringing Bad Things to LifeLife

The alliance between GE The alliance between GE Medical Systems and NY-Medical Systems and NY-

Presbyterian HospitalPresbyterian Hospital

Martin DonohoeMartin Donohoe

The PartnersThe Partners

NY-Presbyterian HospitalNY-Presbyterian Hospital One of the largest academic health One of the largest academic health

care institutions in the U.S.care institutions in the U.S.

GE Medical SystemsGE Medical Systems Subsidiary of General ElectricSubsidiary of General Electric $9 billion annual revenues$9 billion annual revenues

The Agreement (2003)The Agreement (2003)

10-year, $500 million agreement 10-year, $500 million agreement requires NYP to purchase products requires NYP to purchase products and services from GEMS in exchange and services from GEMS in exchange for purported discounts on medical for purported discounts on medical supplies and the promise of supplies and the promise of enhanced technological enhanced technological standardization and simplificationstandardization and simplification

General ElectricGeneral Electric

Ranked by Forbes as world’s largest Ranked by Forbes as world’s largest company (based on equal weighting of company (based on equal weighting of sales, profits, assets, and market value)sales, profits, assets, and market value)

2013 revenues of $147 billion2013 revenues of $147 billion Close to the GDP of more than 2/3 of Close to the GDP of more than 2/3 of

U.N. member statesU.N. member states

2013 net after-tax profits of $13.6 billion2013 net after-tax profits of $13.6 billion

Just over 1/3 from U.S. operationsJust over 1/3 from U.S. operations


Makes household appliances, lighting, and Makes household appliances, lighting, and medical equipmentmedical equipment Plastics division, which produced Plastics division, which produced

bisphenol A, spun off in 2008bisphenol A, spun off in 2008

Produces jet engines and military Produces jet engines and military hardwarehardware

Manufactures advance surveillance Manufactures advance surveillance technologiestechnologies

GE’s HistoryGE’s History

Charles Wilson (CEO of GE pre- and post-Charles Wilson (CEO of GE pre- and post-WW II; helped oversee U.S. military WW II; helped oversee U.S. military production during WW II):production during WW II): ““The revulsion against war…will be an almost The revulsion against war…will be an almost

insuperable obstacle for us to overcome. For insuperable obstacle for us to overcome. For that reason, I am convinced that we must that reason, I am convinced that we must begin now to set the machinery in motion for a begin now to set the machinery in motion for a permanent wartime economy.”permanent wartime economy.”


Has built 91 nuclear power plants in 11 Has built 91 nuclear power plants in 11 countries (including the troubled countries (including the troubled Fukushima Daishi plants in Japan)Fukushima Daishi plants in Japan) Including 23 plants at 11 sites in U.S.Including 23 plants at 11 sites in U.S.

e.g., Hanforde.g., Hanford ¼ of GE’s US reactors found to be ¼ of GE’s US reactors found to be

defectivedefective


Operates coal-burning power plantsOperates coal-burning power plants Major releasers of toxic mercuryMajor releasers of toxic mercury

Produces nearly 40 technologies used in Produces nearly 40 technologies used in frackingfracking Increasing investments in frackingIncreasing investments in fracking


Operates a large financial services groupOperates a large financial services group Lending accounts for Lending accounts for > 30% of revenue, vs. < > 30% of revenue, vs. <

6% of revenue from consumer appliances6% of revenue from consumer appliances Responsible for over 50% of company’s Responsible for over 50% of company’s

profits in recent yearsprofits in recent years

Owns a multi-billion dollar media empireOwns a multi-billion dollar media empire Including NBC (49%, Comcast – 51%), Including NBC (49%, Comcast – 51%),

Telemundo, and Universal StudiosTelemundo, and Universal Studios

GE’s HistoryGE’s History

Conducted unethical human subject experiments Conducted unethical human subject experiments on prisoners, involving testicular irradiation, from on prisoners, involving testicular irradiation, from 1940s to 1960s1940s to 1960s

Intentionally-released excessive radiation from Intentionally-released excessive radiation from its Hanford, WA nuclear reactor in the 1980s, to its Hanford, WA nuclear reactor in the 1980s, to determine how far it would traveldetermine how far it would travel May have contributed to increased thyroid May have contributed to increased thyroid

cancers, hypothyroidism, and spontaneous cancers, hypothyroidism, and spontaneous abortions in “Downwinders”abortions in “Downwinders”

GE’s RecordGE’s Record

Sued radiologist who brought to light Sued radiologist who brought to light dangers of GE’s contrast agent, Omniscandangers of GE’s contrast agent, Omniscan Causes nephrogenic systemic fibrosis (FDA Causes nephrogenic systemic fibrosis (FDA

black box warning)black box warning)

Ordered to pay $11.4 million to Bracco Ordered to pay $11.4 million to Bracco Diagnositcs for falsely/misleadingly Diagnositcs for falsely/misleadingly claiming that its x-ray contrast agent claiming that its x-ray contrast agent Visipaque was superior to BD’s IsovueVisipaque was superior to BD’s Isovue


2013: Recalls multiple nuclear medicine 2013: Recalls multiple nuclear medicine imaging systems due to mechanical imaging systems due to mechanical problem that could cause serious injury or problem that could cause serious injury or deathdeath


America’s largest corporate polluterAmerica’s largest corporate polluter

116 Superfund sites nationwide116 Superfund sites nationwide

Approximately 13 in NYApproximately 13 in NY


Between 1947 and 1977, two of its capacitor Between 1947 and 1977, two of its capacitor manufacturing plants dumped at least 1.3 million manufacturing plants dumped at least 1.3 million pounds of PCBs into the Hudson Riverpounds of PCBs into the Hudson River Probable human carcinogens with adverse Probable human carcinogens with adverse

effects on liver, kidney, nervous system, and effects on liver, kidney, nervous system, and reproductive organs (EPA)reproductive organs (EPA)

200 mi of Hudson Superfund site200 mi of Hudson Superfund site Similar to GE’s contamination of Housatonic Similar to GE’s contamination of Housatonic

River (Pittsfield, MA)River (Pittsfield, MA)


Has spent millions to avoid Hudson cleanup and Has spent millions to avoid Hudson cleanup and to weaken or eliminate Superfund Lawto weaken or eliminate Superfund Law Cleanup going slowlyCleanup going slowly

Contributes to corporate front groupsContributes to corporate front groups Promulgate an anti-scientific and pseudo-Promulgate an anti-scientific and pseudo-

scientific agendascientific agenda Conduct media disinformation campaigns in Conduct media disinformation campaigns in

an attempt to weaken health and an attempt to weaken health and environmental regulationsenvironmental regulations


Tremendous influence of environmental, Tremendous influence of environmental, energy, and health policyenergy, and health policy

Spent over $21 million on federal Spent over $21 million on federal government lobbying in 2011 (#4)government lobbying in 2011 (#4) More than $200 million over last decadeMore than $200 million over last decade

Many members of board of directors have Many members of board of directors have government ties; others have insurance government ties; others have insurance and pharmaceutical industry tiesand pharmaceutical industry ties


Has eliminated 150,000 jobs in the U.S. in Has eliminated 150,000 jobs in the U.S. in the last 15 yearsthe last 15 years While receiving billions in federal contracts While receiving billions in federal contracts

and millions in state and local subsidiesand millions in state and local subsidies

One of nation’s top out-sourcers of jobsOne of nation’s top out-sourcers of jobs 1/5 of U.S. workforce eliminated since 2002 1/5 of U.S. workforce eliminated since 2002

(while overseas workforce increased)(while overseas workforce increased)


Eliminated 34,000 US jobs between Eliminated 34,000 US jobs between 2000 and 20102000 and 2010

Added 25,000 overseas jobs over Added 25,000 overseas jobs over same periodsame period


Executive pension plan far more Executive pension plan far more generous than for other employeesgenerous than for other employees

Continues to shift health care costs Continues to shift health care costs onto workers, despite growing profitsonto workers, despite growing profits


Cited by Human Rights Watch for Cited by Human Rights Watch for “systematic workers’ rights violations” “systematic workers’ rights violations” in the U.S. and abroadin the U.S. and abroad

858 OSHA workplace citations from 858 OSHA workplace citations from 1990-20011990-2001

Investments include for-profit prison Investments include for-profit prison enterprisesenterprises


GE has sponsored PGA Masters GE has sponsored PGA Masters Tournament at Augusta National Golf Tournament at Augusta National Golf ClubClub Club excludes womenClub excludes women CEO Immelt a memberCEO Immelt a member


Topped 2002 Project on Government Topped 2002 Project on Government Oversight’s list of repeat offenders for Oversight’s list of repeat offenders for defrauding U.S. taxpayersdefrauding U.S. taxpayers Paid more than $982 million in fines, Paid more than $982 million in fines,

judgments, and out-of-court settlements judgments, and out-of-court settlements between 1990 and 2002between 1990 and 2002

Financial services division fined $100 million Financial services division fined $100 million for unfair debt collection practices and for unfair debt collection practices and bankruptcy court malfeasancebankruptcy court malfeasance

GE and Corporate TaxesGE and Corporate Taxes

GE topped the list of corporate tax break GE topped the list of corporate tax break recipients from 2001-2003:recipients from 2001-2003: $9.5 billion in tax breaks$9.5 billion in tax breaks

Between 2001 and 2010, paid only 2.3% of its Between 2001 and 2010, paid only 2.3% of its $81 billion profits in federal taxes$81 billion profits in federal taxes

Claimed tax benefits of $3.5 billion in 2010Claimed tax benefits of $3.5 billion in 2010

Under investigation for tax evasion in BrazilUnder investigation for tax evasion in Brazil

Tax department has almost 1,000 employees Tax department has almost 1,000 employees (known as the “world’s best tax law firm”)(known as the “world’s best tax law firm”)


In 1990s, Pentagon’s Defense In 1990s, Pentagon’s Defense Contract Management Agency Contract Management Agency created special investigations office created special investigations office specifically for GEspecifically for GE

Nevertheless, company has been Nevertheless, company has been awarded increasingly costly awarded increasingly costly reconstruction contracts in Iraq and reconstruction contracts in Iraq and AfghanistanAfghanistan


The Patient ChannelThe Patient Channel Shown in hospital rooms throughout Shown in hospital rooms throughout

countrycountry Advertising vehicle for drug Advertising vehicle for drug

companiescompanies Criticized by JCAHO for Criticized by JCAHO for

manipulative marketing practicesmanipulative marketing practices


Produces an electronic medical record, Produces an electronic medical record, Centricity EMRCentricity EMR

Is hoping to receive some of the $19 billion Is hoping to receive some of the $19 billion earmarked for health care information earmarked for health care information technology in the current economic technology in the current economic stimulus package. stimulus package.

GE CEO Jeffrey ImmeltGE CEO Jeffrey Immelt

2013 total compensation = $25.8 million2013 total compensation = $25.8 million

Named “World’s Best CEO” in 3 separate Named “World’s Best CEO” in 3 separate Barron’s pollsBarron’s polls

2006 - 2011 - On Board of NY Federal 2006 - 2011 - On Board of NY Federal Reserve BankReserve Bank


2008 – Named one of the “100 Most Influential 2008 – Named one of the “100 Most Influential People in the World” by TIME MagazinePeople in the World” by TIME Magazine

2009 - Appointed by President Obama to his 2009 - Appointed by President Obama to his Economic Recovery BoardEconomic Recovery Board GE then became eligible, via a loophole, for ¼ GE then became eligible, via a loophole, for ¼

of the $340 billion Temporary Liquidity of the $340 billion Temporary Liquidity Guarantee Program (debt support)Guarantee Program (debt support)


2011 - Appointed by Obama as Chair of 2011 - Appointed by Obama as Chair of his outside panel of Economic Advisors his outside panel of Economic Advisors and of his Council on Jobs and and of his Council on Jobs and CompetitivenessCompetitiveness


Charitable works include membership on Charitable works include membership on the board of directors of “The Robin Hood the board of directors of “The Robin Hood Foundation”!Foundation”!


Named “America’s Most Admired Named “America’s Most Admired Company” by ForbesCompany” by Forbes

Named one of the “World’s Most Named one of the “World’s Most Respected Companies” in polls conducted Respected Companies” in polls conducted by Barron’s and The Financial Timesby Barron’s and The Financial Times

Concerns About the AgreementConcerns About the Agreement

Provides GE with financial incentives Provides GE with financial incentives to promote high technology to promote high technology purchasespurchases

Hospital prohibited from purchasing Hospital prohibited from purchasing more effective equipment from other more effective equipment from other companiescompanies


Augments trend in academic medical Augments trend in academic medical centers to promote the use of expensive, centers to promote the use of expensive, high-technology care at expense of high-technology care at expense of preventive care and public health preventive care and public health measuresmeasures Highly reimbursableHighly reimbursable Services may be redundant in certain Services may be redundant in certain

locationslocations


Occurs at time 49 million Americans Occurs at time 49 million Americans uninsureduninsured

Academic medical centers promoting Academic medical centers promoting luxury primary care clinics and seeking luxury primary care clinics and seeking wealthy overseas patients while cutting wealthy overseas patients while cutting back on services to the un- and under-back on services to the un- and under-insuredinsured


Academic medical centers becoming Academic medical centers becoming increasingly corporatizedincreasingly corporatized Research exclusivity contractsResearch exclusivity contracts

SecrecySecrecy

gag clausesgag clauses

Skewing of research agendaSkewing of research agenda


Signed licensing agreement with Cornell Medical Signed licensing agreement with Cornell Medical School in 2001 re CT scan technologies to School in 2001 re CT scan technologies to screen for lung cancerscreen for lung cancer

Cornell Research Foundation funding primarily Cornell Research Foundation funding primarily from the Vector Group (parent company = from the Vector Group (parent company = Liggett = tobacco company)Liggett = tobacco company)

Antonio Gotto (Cornell Medical School Dean) Antonio Gotto (Cornell Medical School Dean) and Arthur Mahon (Vice Chairman of College and Arthur Mahon (Vice Chairman of College Board of Overseers) on Foundation’s Board of Board of Overseers) on Foundation’s Board of DirectorsDirectors


Dean Gotto stated Cornell publicly disclosed the Dean Gotto stated Cornell publicly disclosed the Vector Group’s role in funding the FoundationVector Group’s role in funding the Foundation However, searches via google and Cornell’s own However, searches via google and Cornell’s own

search engine turn up no such disclosure, and search engine turn up no such disclosure, and Cornell’s press office did not respond to inquiry re the Cornell’s press office did not respond to inquiry re the original disclosureoriginal disclosure

Foundation funded EL-CAP study (NEJM), Foundation funded EL-CAP study (NEJM), which concluded that screening asymptomatic which concluded that screening asymptomatic smokers for lung cancer can detect curable smokers for lung cancer can detect curable tumorstumors Controversial finding, contradicted by other studiesControversial finding, contradicted by other studies


Vector Group/Liggett’s role as funding source Vector Group/Liggett’s role as funding source not mentioned in original article, in violation of not mentioned in original article, in violation of conflict of interest disclosure policyconflict of interest disclosure policyPatents and royalties from GE technology not Patents and royalties from GE technology not noted eithernoted eitherLarge profit potentials for GE (increased Large profit potentials for GE (increased screening) and Liggett (reassured smokers less screening) and Liggett (reassured smokers less likely to quit)likely to quit)For references, see For references, see http://phsj.org/wp-content/uploads/2008/05/elcap-vector-cornell-coi-bioethics-listserv-posts-4-08.doc


I contacted the CEO of New York I contacted the CEO of New York Presbyterian Hospital, the Dean, and the Presbyterian Hospital, the Dean, and the head of the Ethics Department to obtain head of the Ethics Department to obtain more information re the agreement and more information re the agreement and the nature of the discussion preceding the the nature of the discussion preceding the agreementagreement No ResponseNo Response


Patients with developmental Patients with developmental anomalies and cancers anomalies and cancers causedcaused by by GE’s pollution GE’s pollution diagnoseddiagnosed with GE with GE scanners and scanners and treatedtreated with GE- with GE-manufactured therapeutic devices, manufactured therapeutic devices, increasing GE’s profitincreasing GE’s profit

A macabre twist on A macabre twist on “cradle to grave care”“cradle to grave care”

SolutionsSolutions

NY-P should cancel agreementNY-P should cancel agreement

Health care providers and Health care providers and organizations should condemn this organizations should condemn this alliancealliance

Medical and ethical organizations Medical and ethical organizations should develop standards regarding should develop standards regarding future agreementsfuture agreements

ReferenceReference

Donohoe MT, Robinson C. Donohoe MT, Robinson C. Corporations Corporations and Public Health: Overview and Case and Public Health: Overview and Case Study of GE Healthcare - "Most Admired Study of GE Healthcare - "Most Admired Company" or Foe of Public Health. Company" or Foe of Public Health. Social Social Medicine 2010;5(4):237-244. Available at Medicine 2010;5(4):237-244. Available at http://www.socialmedicine.info/index.php/socialmedicine/article/view/482/1035. .

Contact InformationContact Information

Public Health and Social Justice Public Health and Social Justice WebsiteWebsite

http://www.phsj.org

[email protected]

bringing bad things to life

Documents

nuclear power plants

medical supplies

companys profits

capacitor manufacturing

hanford of ges us reactors

worlds largest company

wa nuclear reactor

xray contrast agent