Amid the absurdly trivial corporate media coverage of the Coronavirus crisis, are stories that slip by unnoticed. One of them is another investigation, another investigation by a congressional subcommittee about whether “the U.S. government is paying too much for ventilators made by a Dutch company that received millions in tax dollars to develop an affordable one for pandemics, but is now charging quadruple the price under a new deal.”
The deal for the ventilators was struck between the Department of Health and Human Services and the U.S. Division of the Dutch Company. (See other stories in Propublica).
In 2014, the agency’s Biomedical Advanced Research and Development Authority (BARDA) struck a $13.8 million deal with the company to develop ventilators for the Strategic National Stockpile. Based on the advice of experts, the agreement called for the devices to be low cost, portable, durable and easy to use by personnel with limited medical training.
Once Philips’ Respironics division received clearance for that ventilator from the Food and Drug Administration last year, BARDA ordered 10,000 of them for $3,280 each — a price agreed upon when Philips entered into the original deal in 2014.
As Propublica previously reported, Philips never produced any of those devices for the stockpile. Instead, as the coronavirus spread, the company manufactured commercial versions of the ventilator at its factory outside Pittsburgh and sold them for far higher prices overseas. Then, rather than pushing the company to accelerate the delivery of the ventilators developed for the stockpile, HHS this month agreed to buy 43,000 of the commercial version at a price of $15,000 per ventilator.
But once Philips got the crucial FDA clearance for the new design, Rep. Raja Krishnamoorthi said, “they turn around — at the very time we most need these ventilators — and use the fruits of taxpayers’ dollars to essentially sell a high-margin version of what taxpayers wanted to foreign consumers and deprioritized the sales of what taxpayers wanted.”
Contact Rep. Raja Krishnamoorthi, who chairs the Subcommittee on Economic and Consumer Policy. The subcommittee falls under the House Committee on Oversight and Reform.
Article: Callahan, Patricia and Sebastian Rotella (4/16/20) Congress is investigating…” Propublica