Perhaps you've seen this story…..
Pfizer Inc., the world's largest drug maker, will pay a record $2.3 billion civil and criminal penalty over unlawful prescription drug promotions, the Justice Department announced Wednesday.
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The department said the $2.3 billion settlement included a $1.2 billion criminal fine, the largest criminal fine in U.S. history. The agreement also included a criminal forfeiture of $105 million.
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The government said the company promoted four prescription drugs, including the pain killer Bextra, as treatments for medical conditions different than those the drugs had been approved for by federal regulators.
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Authorities said Pfizer's salesmen and women created phony doctor requests for medical information in order to send unsolicited information to doctors about unapproved uses and dosages.
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When Pfizer originally disclosed the settlement figure, it also announced plans to acquire rival Wyeth for $68 billion. That deal, which would bolster Pfizer's position as the world's top drug maker by revenue, is expected to close before year's end.
Pfizer's 4th quarter, 2008, earnings report….the quarter in which they wrote off the $2.3 billion government penalty…..was a period where Pfizer's revenues were $12.3 billion.
Pfizer spokesman Chris Loder confirmed Wednesday that the $2.3 billion charge to the company's earnings had been taken in the fourth quarter of 2008.
Obviously, what Pfizer did was a crime. A $2.3 billion fine, $1.2 billion of it a "criminal fine", whatever the hell that is……but no arrests, no jail time…..just some check writing using shareholders' money, that's all.
That is what is now acceptable in America, the status quo. Powerful and connected multinational pharmaceutical corporations, bastions of that free capitalistic market, perpetrate dangerous fraud against the American people….and other than the check writing…..no one is held responsible.
Corporations want to be recognized as being equal to a "person" when they're bribing political officials. But when that "person" is caught in a fraud scheme, then, not so much. Then they should be treated in some exceptional manner. Regular, you know, people who committed extraordinary fraud, like Pfizer did, would spend many years behind bars.
That's the state of America's free market giants today. Just like with our political officials, pharamceutical free marketers are immune from legal accountability for their actions.
I want to drill down on this for a minute…..
Authorities said Pfizer's salesmen and women created phony doctor requests for medical information in order to send unsolicited information to doctors about unapproved uses and dosages.
Every time I take my 84 year old mother for her quarterly doctor's appointment, I see them. Every time. Not one time have I taken my mother for her appointment when I have not seen them. The pharmaceutical salespeople. And not just one or two. Many times I count 4-5 drug representatives in a span of 30 minutes. The salepeople consist of both men and women, usually young and attractive, well dressed, shoes shined…..and always bearing gifts…..donuts, pizza, lunch for everyone in the office…..it's remarkable, and that's why I'm remarking on it.
Those are the same type of people who were defrauding doctors, and their patients by "creating phony doctor requests" in order to then "send unsolicited information to doctors about unapproved uses and dosages" of one of Pfizer's drugs. It was a full blown conspiracy to defraud doctors, clinics and patients…….and not one person goes to jail for it.
Health care considerations are being argued in America today. Conservatives insist that we can trust the free market, they say that the private market is the most efficient vehicle to address the needs of the many. Government, conservatives say, can't be trusted with health care coverage….if government, for example, allows Americans to choose a public insurance option, or negotiates with Big Pharma for lower drug prices…..conservatives tell me that we will turn into Cuba within a year, or something.
Yet, time after time, huge insurance and pharmaceutical free marketers have proven that they can't be trusted to do the right thing, like with Pfizer.
There's a commonly used phrase in today's conservative circles….it goes something like this…."when has the government ever run anything correctly, efficiently or responsibly."
I think a more apt phrase for today's environment would be something like this…."when have the free marketer big guys ever run anything that wasn't basically criminal in nature."
Is this Pfizer crime story proof that we can trust the free marketers with our health care? Or is the Pfizer story simply more evidence that the free market CAN'T be trusted with America's health care….and government intervention has become essential?
{ 25 comments… read them below or add one }
Do you think if the govt takes over health care that this will change? Is medicare or medicaid monitoring these things? No. Apparently neither is the FDA. (Govt run organizations)They know what these drugs are used for and apparently turned a blind eye until something bad happened. Same with smoking. It was great while the govt was raking in billions in revenues from sales and taxes. Then they found out it was bad for the people and caused cancer and heart and lung problems. Is it taken off the market? Nope just fined and back on their way. Now the govt makes money from the taxes and the fines. Wow and we thought SS was a scheme. Who are the final victims? Us, the taxpayers. Our kids that smoke because their friends do. We now pay more for cigarettes and tobacco if we smoke. To cover the fines and taxes and we also get to pay higher health insurance rates. So govt isn't going to protect us, they are going to find a way to extract more money out of the situation so they can support their special intersts. It won't change Rev unless we change the way politicians get campaign donations. Look who Obama is paying back, Look who Bush paid back. That is the problem.
We agree on the campaign money. Totally. And yes, grubbers were at work in the tobacco issue.
The point is simply this…..we can't trust big pharma and big health insurance in the same way that we can't trust big oil, or big banksters…..they cannot control their greed, they simply can't….it's like heroin addiction.
The only way to deal with addicts is with tough love. Challenge the greed with drug negotiation rights and a public insurance option from the government, both of which would lower costs to consumers….that will get their attention and perhaps shock them, at least temporarily, out of their greed highs.
The proper thing to do is to level the private insurance companies and offer single payer, government run, health coverage for all. Odd, don't you think, that America can no longer do the right thing, the smart and intelligent thing?
Joe,
Isn't the Medicare fraud rate about 30% ? I don't know why the Rev thinks government is the answer.
Rev,
Your logic never ceases to amaze me. Pfizer does something illegal, and then you make the quantum
jump to the conclusion that ALL private industry is crooked.
Along that line, when are we going to throw the entire Congress in prison for stealing trillions from the Social Security Trust Fund ? That has to be the biggest ripoff in American history, and………..nobody went to jail, nobody was fined. No nothing, and the scam continues.
It was Reagan's plan. The Trust Fund. He signed it. End of story.
I did not say that government was the solution. I'm saying, that in a situation like we're in concerning health care costs , etc. when unbridled corporate greed, just like with the banksters…. the government must intervene to change the playing field. The obscene profits and highly paid CEO's, let alone the fat boys that have hundreds of thousands of shares of health insurance and pharma stocks in their, you know, portfolio, need to have their profits nipped for the sake of the team.
The only way to accomplish it is to insert a not-for-profit, single payer public option, like Medicare, into the greed mix. It will make our private corporations get their sh*t together. You either have to compete with a cheaper, leaner non-profit, or get out of the business.
And never forget this. A public option, to me, is a weak compromise. I want single payer, Canadian style, coverage. So do all true liberals and reality-based independents. It's the most efficient way to deal with this national issue. Naturally, single payer had zero voice in Congress. So, now a half-assed, cake-and-eat-it-too plan with private greedmongers who purposely make profits by denying people health care competing, somewhat, with a government run, insurance option.
If we do, by some miracle, get a public option, it's still only a very moderate bill. And yes, I'm serious.
It sounds to me like Pfizer was hit with a pretty hefty fine, possibly big enough that further antics probably won't be seen as good business. What's the problem?
The problem is…the capitalistists are crooks. Can't be trusted. Why WOULDN'T I want the government to intervene with a new public health coverage program when capitalists in pharma and insurance are crooks?
Secondly, you try running a multi-million dollar scam similar to Pfizer's and see if you simply write a check when you get busted. "Criminal fine" but no criminal time. Double standard America.
Some capitalists are crooks, which is why there should be some regulation, Reverend. It seems like the proper regulation was in place on this occassion and Pfizer is paying dearly for it.
The 'revenge' thing doesn't really factor into my thinking but maybe you're right. My guess is whatever prosecutor would have jurisdiction over this saw it as impractical due to a large corporation's byzantine streams of responsibility, etc.
I was reading about France and the Netherlands and how their system works and works well. Unlike popular belief they Do NOT stand in long lines waiting for treatment. .In a 2008 survey of adults with chronic disease conducted by the Commonwealth Fund – a- 60 percent of Dutch patients and 42 percent of French patients could get same-day appointments. The figure in the US was just 26 percent. In the Netherlands, people buy health insurance from competing private carriers where as in France, people get basic insurance from nonprofit funds then have the option to purchase supplemental insurance on their own. That sounds like our public option. But in both countries all people have insurance that covers all legitimate medical services. In both countries, the government is involved in regulating prices and setting national budgets. And, in both countries, people pay for health insurance through a combination of private payments and taxes. And in france doctors actually make house calls. Women get materinity leaves and a nanny to help them for a few weeks.
But see Andrea, those countries are devilishly socialistic. And socialism, like public roads, police and fire protection, national parks, Medicare and Medicaid, Social Security, and libraries….is, somehow, unAmerican. Yeah, I don't understand it either.
No matter how poorly America performs, America, alone, is exceptional. Facts about European health care be damned.
Consider this Andrea….how many times has Big Media explained the various approaches to health care in other countries? How many times have we been exposed to the details of other countries health programs,….programs with public options, single payer plans and hybrids? Just for comparative value? Not much. I wonder why?
larry….you omitted my call for criminal punishment for criminal behavior. Fines mean something, no doubt, but corporate fines are paid with other people's money….cost of doing business. But no jail time for anyone demonstrates America's double standard over committing crimes. And this was a rather big crime, don't you think?
You goad me with this….
"The 'revenge' thing doesn't really factor into my thinking but maybe you're right. My guess is whatever prosecutor would have jurisdiction over this saw it as impractical due to a large corporation's byzantine streams of responsibility, etc."
…as if enforcing the rule of law is now "vengeance." And your choice of the word "impractical", because Pfizer is buried in "responsibility", shows that you actually do believe in two standards…..one for average Joe's (no offense average), and one for those lofty corporate saints who are oh-so-juggling "byzantine streams of responsibility."
Or did I read you wrong?
I said maybe you were right that someone should possibly be charged with a crime, Reverend, but wasn't clear I guess. I don't think pointing out the difficulties in bringing charges against particular members of a corporation means I believe in two standards. Prosecutors choose not to prosecute all the time when it looks like they can't win and I was just speculating on why no one was charged.
As for the vengeance thing, your tone definitely leads me to believe you'd like to see someone suffer, which is fairly common on this blog and among lefties in general these days.
Just consider……a criminal fraud investigation resulting in a $3+ billion fine because a massive fraud was perpetrated by out-of-control greedmongers in the private pharma/health care sector……brings no charges or arrests against any any of the participants.
Pointing that out is being vengeful……my "tone" suggesting someone should be held accountable ("see someone suffer")…..is all that's wrong.
The purpose should be to insure the crime never happens again, in my view. Making such crime bad business through a mammoth fine might be the most effective way to do that, but if a prosecutor can identify folks who knowingly broke the law he or she should prosecute.
Rev says, "It was Reagan's plan. The Trust Fund. He signed it. End of story."
Huh ? That's not even a story. It's another of your Fractured Fairytales. You think Reagan created the SS Trust fund ? Not even close. The Trust Fund was created in 1939, and the SS funds went into the general fund in the 1960's, making our deficits appear smaller. The government has virtually always used the SS funds for other purposes. Reagan actually wanted to take SS out of the general budget in 1983. Reagan's changes were made because of the shortfalls that would hit the baby boomers in coming years.
Educate yourself.
http://en.wikipedia.org/wiki/Social_Security_(United_States)
Rev says, "The problem is…the capitalistists are crooks. Can't be trusted. Why WOULDN'T I want the government to intervene with a new public health coverage program when capitalists in pharma and insurance are crooks?"
There you go again. There is no bigger crook than the federal government. Not even close (you've even been telling me this for the 8 years of the Bush admin yourself). The SS scam is but one example out of thousands. Why you think the government should be trusted over private industry, I have no idea. Most of the worst atrocities in history have been presided over by all-powerful governments. I think you take liberty for granted. You shouldn't.
Private industry bankrupted the nation. Private industry has left 45 million Americans uninsured.
That's why.
Social Security, on the other hand, is secure for another 30 years.
Reagan oversaw and signed into law our current SS system. Reagan signed the bill raising SS deductions, the purpose of which was to prepare for the retirement of baby boomers. Why did the socialist, Reagan, do such a thing?
"Private industry has bankrupted the country". Come on now Rev not even you believe that. And no it hasn't left 45 million Americans uninsured. Writing this, you must have been late for a picnic today. Speaking of that, have a good holiday eveyone. Is Obama Claus going to bring us gifts like more down payments for houses and car and appliances and put under a tree of some sort?
Yes, I do…believe that. The bankster meltdown has brought about the depression we're in. Stubborn conservatives argue that the government forced the banksters to commit bankruptcy….that the banksters were simply doing their angelic work making profits and then the big, bad government put guns to their corporate heads and made them go bankrupt.
Sorry, that's totally ridiculous.
Have a good Labor Day, average…and all.
Rev,
The government bankrupted the nation, and is more in debt than any private business (or other government) in world history. SS is the biggest ripoff ever devised. There is no Trust Fund. The government STOLE it. Medicare is on track to bankrupt the nation in a few years. Yes, let's put all our faith in Big Brother. Let's have the government run everything. That has always worked out SO well in the past, lol. Crack a history book, Rev. Absolutely every all-poweful centralized government has oppressed it's people. EVERY SINGLE ONE. Yet, you think this time it will be different. It won't be. It CAN'T be.
The economic depression we are currently in….was created by private greedmongers who can't be trusted. That's what Alan Greenspan said.
It was also created by Alan Greenspan. What do you expect him to say ? Has even ONE government official owned up to his/her own role in the economic crisis ? I haven't heard one, and they were hip deep in the whole thing.
It was created by the Govt. Even George Soros says that. It stems from the euphoric gutting of America in the 90's and goes right through our current congress.
I'd place the seeds of the housing bubble back even further, into the 1970's. That's when the traditionally conservative (small 'c') bankers started transforming into bigger and bigger risk takers due to political pressures and legislative changes centered around increasing mortgage lending. The government created the entire framework for this disaster. The housing bubble lasted 30 years, though it really took off in the late 90's after the repeal of Glass-Steagal and other pieces of legislation were passed. Greenspan's addition to the crisis came in keeping interest rates too low from 2004-2006 as the housing bubble grew and grew.
But dishonest simpletons, like our current President, blame it all on Bush. That's convenient for him, and he can sell it to the uninformed, but it's just not factual. There is SO much more to it than that.
S Nazar Fatimi Chitral Pakistan
REAL and GROSS ROOT DEMOCRACY AS INTERPRETED BY Plato
We have made democracy our civilisation, religion and culture. Democracy is keeping in VIEW the welfare of the majority. Democracy for all. We kill millions by carpet bombing just to force them believe DEMOCRACY and follow our's.
Then why NOT ? we propose democracy, justice, equality for the majority of the world in health, economy, education and opportunities for all the deprived and un priviliged majority of the world. Why we let them die starving, thirsty and fueling war staged by the selective democrates???
ssfatimi@gmail.com