Company Prioritizes $15k Ventilators Over Cheaper Model Specified in Contract
upstart writes in with an IRC submission for SoyCow8192:
Company prioritizes $15k ventilators over cheaper model specified in contract:
The Dutch company that received millions of taxpayer dollars to develop an affordable ventilator for pandemics but never delivered them has struck a much more lucrative deal with the federal government to make 43,000 ventilators at four times the price.
The US Department of Health and Human Services announced Wednesday that it plans to pay Royal Philips N.V. $646.7 million for the new ventilators-paying more than $15,000 each. The first 2,500 units are to arrive before the end of May, HHS said, and the rest by the end of December.
Philips refused to say which model of ventilator the government was buying. But in response to questions from ProPublica, HHS officials said the government is purchasing the Trilogy EV300, the more expensive version of the ventilator that was developed with federal funds.
The deal is a striking departure from the federal contract Philips' Respironics division signed in September to produce 10,000 ventilators for the Strategic National Stockpile at a cost of $3,280 each.
"This kind of profiteering-paying four times the negotiated price-is not only irresponsible to taxpayers but is particularly offensive when so many people are out of work," said Dr. Nicole Lurie, who served as the HHS assistant secretary for preparedness and response during the Obama administration. "And besides, most of these ventilators will come too late to make a difference in this pandemic. We'll then 'replenish' the stockpile at a ridiculously high price."
"What else," she asked, "won't we be able to buy as a result?"
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