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 AgreementThe Agreement

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

World’s largest company by market World’s largest company by market shareshare

2003 revenues of $134.2 billion2003 revenues of $134.2 billion Greater than the GDP of more than Greater than the GDP of more than

2/3 of U.N. member states2/3 of U.N. member states

2003 net after-tax profits of $15.6 2003 net after-tax profits of $15.6 billionbillion

General ElectricGeneral Electric

Makes household appliances, Makes household appliances, plastics, lighting, and medical plastics, lighting, and medical equipmentequipment

Produces jet engines and military Produces jet engines and military hardwarehardware

Has built 91 nuclear power plants in Has built 91 nuclear power plants in 11 countries11 countries

General ElectricGeneral Electric

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

Operates a financial services groupOperates a financial services group

Owns a $43 billion media empireOwns a $43 billion media empire Including NBC, Telemundo, and Including NBC, Telemundo, and

Universal StudiosUniversal Studios

GE’s HistoryGE’s History

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

Intentionally-released excessive radiation Intentionally-released excessive radiation from its Hanford, WA nuclear reactor in the from its Hanford, WA nuclear reactor in the 1980s, to determine how far it would travel1980s, to determine how far it would travel May have contributed to increased May have contributed to increased

thyroid cancer risk in “Downwinders”thyroid cancer risk in “Downwinders”

GE’s RecordGE’s Record

America’s largest corporate polluterAmerica’s largest corporate polluter

75 Superfund sites nationwide75 Superfund sites nationwide

13 in NY13 in NY

GE’s RecordGE’s Record

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

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

200 mi of Hudson Superfund site200 mi of Hudson Superfund site

GE’s RecordGE’s Record

Has spent millions to avoid Hudson Has spent millions to avoid Hudson cleanup and to weaken or eliminate cleanup and to weaken or eliminate Superfund LawSuperfund Law

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

GE’s RecordGE’s Record

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

Spent $31 million lobbying Congress, Spent $31 million lobbying Congress, federal agencies, and Executive Office of federal agencies, and Executive Office of the President in 2001 and 2002the President in 2001 and 2002

Many member’s of board of directors have Many member’s of board of directors have government tiesgovernment ties

GE’s RecordGE’s Record

Has eliminated 150,000 jobs in last Has eliminated 150,000 jobs in last 15 years15 years While receiving billions in federal While receiving billions in federal

contracts and millions in state and contracts and millions in state and local subsidieslocal subsidies

One of nation’s top out-sourcers of One of nation’s top out-sourcers of jobsjobs

GE’s RecordGE’s Record

Continues to under-fund employee Continues to under-fund employee pension plan, despite very generous pension plan, despite very generous compensation packages for compensation packages for executivesexecutives

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

GE’s RecordGE’s Record

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

GE’s RecordGE’s Record

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

GE’s RecordGE’s Record

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

GE’s RecordGE’s Record

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

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

Concerns About the AgreementConcerns About the Agreement

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

Concerns About the AgreementConcerns About the Agreement

Occurs at time 45 million Americans Occurs at time 45 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

Concerns About the AgreementConcerns About the Agreement

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

Concerns About the AgreementConcerns About the Agreement

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 unholy allianceunholy alliance

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

ReferenceReference

Donohoe MT. GE – Bringing Bad Things Donohoe MT. GE – Bringing Bad Things to Life: Cradle to Grave Health Care and to Life: Cradle to Grave Health Care and the Alliance between General Electric the Alliance between General Electric Medical Systems and New York-Medical Systems and New York-Presbyterian Hospital, Presbyterian Hospital, Synthesis/Regeneration 2006(Fall);41:31-Synthesis/Regeneration 2006(Fall);41:31-3 (abridged version – complete version 3 (abridged version – complete version available on website)available on website)

Contact InformationContact Information

Public Health and Social Justice Public Health and Social Justice WebsiteWebsite

http://www.phsj.orghttp://www.phsj.org

martindonohoe@phsj.orgmartindonohoe@phsj.org