Quick Summary:
• The 2024 Shkreli Awards highlighted the 10 most egregious examples of healthcare profiteering and dysfunction, including unethical practices by hospitals, insurers, and pharmaceutical companies.
• The top spot went to Steward Health Care CEO Ralph de la Torre for prioritizing private equity profits over patient care, leading to hospital closures, layoffs, and reduced healthcare access.
• UnitedHealth, the nation’s fourth-largest business, ranked second for pressuring doctors to minimize time with patients and maximize federal reimbursements through aggressive coding tactics.
• Amgen was called out for promoting high doses of its cancer drug Lumakras, costing patients significantly more despite a lower, equally effective dose being available.
• Memorial Medical Center in New Mexico allegedly demanded upfront payments for cancer treatments, even from insured patients, leaving many without care.
• Zynex Medical faced scrutiny for questionable billing practices, sending patients unnecessary supplies and charging them without prior consent.
• The University of North Texas Health Science Center was exposed for dissecting and distributing unclaimed bodies without seeking proper consent from families, selling body parts to companies like Medtronic and Johnson & Johnson.
The Lown Institute has unveiled the recipients of the 2024 Shkreli Awards, spotlighting the most egregious examples of profiteering and dysfunction in the U.S. healthcare system. Named after Martin Shkreli, infamous for his role in dramatically inflating the price of lifesaving drugs, the annual awards highlight unethical practices that continue to plague the healthcare industry, underscoring a system in desperate need of reform.
The list of offenders this year includes a Texas medical school accused of illegally distributing body parts, a multibillion-dollar catheter billing scam, and an oncologist who administered unnecessary treatments to patients. Topping the list is Steward Health Care CEO Dr. Ralph de la Torre, who has been accused of prioritizing private equity profits over patient care, leaving hospitals gutted and communities underserved.
“All these stories paint a picture of a healthcare industry in desperate need of transformation,” said Dr. Vikas Saini, president of the Lown Institute, during the award ceremony. “Doing these awards every year shows us that this is nothing new. We’re hoping that these stories illuminate what changes are needed.”
The Shkreli Awards, now in their eighth year, are determined by a panel of 20 experts from various fields, including physicians, professors, journalists, and advocates. Each year, the awards aim to expose the worst instances of unethical behavior in the healthcare industry and raise awareness about the need for reform.
This year’s awardees include:
• University of North Texas Health Science Center: The medical school was accused of dissecting and distributing unclaimed bodies without obtaining proper consent from the deceased or their families. According to NBC News, the body parts were supplied to medical students and for-profit companies such as Medtronic and Johnson & Johnson.
• Baby Tongue-Tie Cutting Procedures: Despite limited evidence of its effectiveness, this outdated procedure is still promoted as a cure for a variety of ailments, from breastfeeding difficulties to sleep apnea and even constipation. Critics say the procedure is being performed unnecessarily to generate profit.
• Zynex Medical: The company, which specializes in nerve stimulation devices for pain management, has faced criticism for its billing practices. Patients reportedly received unsolicited supplies of batteries and electrode pads, which they were then billed for without their consent. According to Stat News, nearly 70% of Zynex’s $184 million revenue in 2023 came from these items.
• Cigna’s $97,599 Air Ambulance Bill: After an infant needed emergency transport to a specialized medical center, the family was left with a nearly $100,000 bill. Cigna deemed the air ambulance service “not medically necessary,” a decision that highlights the broader issue of insurance companies denying coverage to maximize profits.
• Multibillion-Dollar Catheter Billing Scam: Seven suppliers allegedly ran a fraudulent scheme that involved billing Medicare for urinary catheters, affecting hundreds of thousands of patients. The scam represented an 800% increase in catheter claims, with $2 billion in suspicious charges submitted in 2023 alone.
• Memorial Medical Center in Las Cruces, New Mexico: The once nonprofit hospital, which has since transitioned to a for-profit model, was accused of denying cancer treatments to patients or demanding upfront payments even from those with insurance coverage.
• Dr. Thomas C. Weiner: An oncologist from Montana, Dr. Weiner is accused of administering unnecessary cancer treatments to a patient for over a decade. He also allegedly prescribed high doses of opioids to patients who did not need them and facilitated the deaths of seriously ill patients with barbiturates in questionable circumstances.
• Amgen’s Lumakras Pricing: The pharmaceutical giant was criticized for promoting a 960mg dose of its cancer drug Lumakras, despite evidence that a lower 240mg dose offered the same efficacy with fewer side effects. The higher dose costs $180,000 more per patient annually.
• UnitedHealth’s Aggressive Practices: UnitedHealth, the fourth-largest business in the U.S., has been accused of pressuring doctors to minimize time spent with patients and engage in aggressive medical coding to make patients appear sicker than they are in order to maximize reimbursements from the federal government.
• Steward Health Care CEO Dr. Ralph de la Torre: Taking the top spot on this year’s list, Dr. de la Torre is accused of orchestrating a healthcare debacle by prioritizing private equity profits over patient care. His financial schemes reportedly left hospitals bankrupt, employees laid off, and communities with limited access to healthcare services.
The cases highlighted by the Shkreli Awards expose a troubling trend in the U.S. healthcare system, where profit motives often take precedence over patient care. From fraudulent billing practices to unnecessary medical procedures, these instances reveal systemic issues that require urgent attention.
The case of Steward Health Care is particularly concerning, as it highlights the dangers of private equity ownership in the healthcare sector. According to the Lown Institute, Dr. de la Torre walked away with more than $250 million over the past four years, even as hospitals under his leadership faced financial ruin and communities were left underserved.
“What was going on here was on the grapevine for many years. And if we knew about it, then we have to ask: ‘Where are the regulators? Where are the people who should’ve known better?’” said Saini during the award ceremony.
The Shkreli Awards serve as a stark reminder of the need for healthcare reform in the United States. The Lown Institute hopes that by shedding light on these unethical practices, policymakers and industry leaders will be compelled to take action.
Advocates are calling for stricter regulations to prevent profiteering and ensure accountability within the healthcare system. They are also urging the government to strengthen the enforcement of existing laws and introduce new legislation aimed at protecting patients from exploitation.
“Pharma companies have that same incentive to get a return on profits,” said Patricia Kelmar, a senior director at U.S. PIRG. “The healthcare industry is a business, and businesses will try to get the highest profits possible.”
The Shkreli Awards highlight the worst offenders in the U.S. healthcare system, exposing unethical practices that prioritize profits over patient care. The stories behind this year’s awardees paint a grim picture of a healthcare industry in desperate need of transformation.
To learn more about the 2024 Shkreli Awards and see past winners, visit Lown Institute.
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