Daniel Tsai, Mayor Daniel Lurie’s choice to lead the Department of Public Health, has a blue-chip résumé: After studying at Harvard University, he landed a prestigious consulting gig before jumping into government, leading Medicaid programs in Massachusetts, then federally under former President Joe Biden.
Along the way, Tsai, in his capacity as an employee with McKinsey & Company, helped to market a powerful painkiller called tramadol during the company’s years-long streak of pushing opioid sales. The company’s actions ultimately led to a criminal probe, more than $1 billion in settlements, and a public mea culpa over its role in fueling an overdose epidemic that has killed more than 500,000 Americans over 25 years.
Tsai’s actions at McKinsey are detailed in a tranche of documents that were released as part of a settlement with the consulting firm in which it was accused of accelerating opioid sales despite growing awareness of the risks.
The records show that Tsai — who worked for McKinsey from 2007 to 2015, according to his LinkedIn page — helped develop a marketing strategy for tramadol sold under the brand name Ultram ER, an effort that involved cultivating relationships with doctors who became prolific prescribers. The records are housed at the UCSF-JHU Opioid Industry Documents Archive.
In a March 2008 PowerPoint presentation, Tsai outlined a marketing strategy for the drug that included guidance on targeting “specific physician segments to grow high-prescriber group (i.e., physicians more sensitive to patient needs)” and an idea to introduce “coupons” for the drug as part of a pilot program.
“We hope to be interviewing some high-prescriber physicians next week,” Tsai wrote in an email the same month, attaching a list of questions that could be used to screen doctors.
Lurie’s office defended Tsai’s appointment as Public Health chief. In a statement, the mayor’s office wrote, “Nearly 20 years ago, Dan Tsai was a 23-year-old entry-level staffer assigned to conduct research for a project at work. He has spent nearly his entire two-decade career supporting those struggling with homelessness and addiction and helping tens of millions of our most vulnerable neighbors access critical medical care, and he will continue that work in San Francisco.”
Several drug and homelessness service providers in the city said they were disappointed by a lack of transparency surrounding Tsai’s appointment process. The revelation of his past role at McKinsey intensified those concerns, they said.
“You’d want a public health official of that caliber to articulate what his partic
11 Comments
AlexandrB
Say something spicy on Facebook: lose your job. Make a living pushing prescription painkillers triggering an opioid epidemic: awww shucks guys, he deserves another chance.
This quote at the end is particularly funny cope:
> "Just like [Tsai] distributed the drugs, maybe he can distribute the solution to the drugs,” Beal said. “Hopefully, he can use the knowledge he has from helping to create the monster to figure out how to solve it."
Yeah, ok. I guess this is also why we usually hire people arrested for carjacking to head police task forces on auto theft. /s
Swizec
This looks bad of course, but isn’t he also someone who knows about how this stuff works and has lots of relevant experience building messaging strategies to achieve a goal? Sounds like the guy you’d want handling the opioid epidemic.
mszyndel
United States is a banana republic, per the original meaning, a country so weak that a group of millionaires can swoop in and do whatever they want with it.
stouset
I hate regulatory capture as much as anyone, but this makes for a more damning-sounding headline than it actually is. To steal a comment from Reddit[1] user NewInThe1AC:
> It's a lot less concerning if you actually think about what he specifically did, and what information he would've had access to at the time
> He was 23 and working on an early career project. Given how consulting teams are structured, he was not an architect of any grand scheme or plan, and was just executing the work ahead of him. Based on the evidence cited in the article, this was run of the mill business research — interviewing experts about how pharma sales works and how to segment doctors, summarizing and framing to get to recommendations, and editing PowerPoints
> It's only bad when you consider that the product was opioids, but keep in mind that the scientific literature he would've had access to at the time would not have suggested they were especially harmful. If anything, there were compelling reasons for a 3rd party at the time to actually believe that more widespread use of these products would improve wellbeing. If it was so obvious to everyone how bad these things were, we wouldn't have ended up with the crisis we did
[1] https://old.reddit.com/r/sanfrancisco/comments/1ipgwcm/sfs_n…
sweeter
The people doing the bulk of the corruption here in the US just decided to stop even trying to hide it. Why would they hide it at this point? They aren't even worried about the optics anymore, they are sending a clear message imo. There's like a handful of people in high positions who aren't corrupt, and all of the ire is aimed at low level employees. I wish I could say that I didn't know why, but it is pretty clear.
Even then, it seems like this headline is a little sensationalist. But optically, not good. Even then, this is something that everyone should be aware of. It is easy to jump to conclusions, but we should also do our due diligence here to verify these connections. This can end similar to how Bernie Sanders was painted as a health industry "shill" when in reality it was just the way political donations are categorized.
Nurses and such had donated X amount of dollars to his campaign and that was twisted as him taking money from "the healthcare lobby" when in reality he is basically one of the 3 people in government who don't accept super pac and lobbying money, proving that you can indeed survive off of grassroots donations. So we have to be careful here. Optics is not enough to make a conclusion, and people will try to use that against you.
xyst
This guy is a classic example of failing upward. Goes from parasitic consultant at McKinsey. Consulting/devising strategy to market opioids to masses. Then to _medical_ director at MassHealth. Then to director of Medicaid and CHIP. And now a public health chief.
No medical degree or scientific background. Background reads like an accountant from McDougal & McDouglass (w/e firm that took over Boeing).
It’s no wonder people have no confidence in our health system. It’s filled with nepo babies and neoclassical economic types that min/max cost.
GIVEDADDYABYTE
I'm reading a book on McKinsey now titled "When McKinsey Comes To Town". Given the firms track record finally coming to light it's amazing that working at McKinsey is a career booster instead of a black mark. Hopefully more people start to realize that putting the most ruthless business minds in charge of public healthcare leads to poor outcomes.
I'd recommend reading the book, it is a bit of a downer though
mmooss
The interesting question is why the mayor is sticking with him. That seems like a major change in the embrace of corruption recently. What does the mayor gain politically by sticking with this guy?
SoleilAbsolu
SFDPH in general has been moving in a more corporate/consulting-BS direction in last several years, guessing that will accelerate with this individual. Their transition to Epic EHR across the system has heralded a new era of squeaky-clean product/project managers who sling massive Agile jargon but don't actually understand the technical/compliance processes involved that affect orgs like mine who have to integrate with their systems (basics like not understanding the limitations of numerical precision in Excel data types affecting .CSVs, Unix vs. Windows line endings, BOMs, leading zero truncation, demanding tons of excess PHI in billing records for de-duplication).
Their response to our issues is kindly, gently strong-arming us to ditch our EHR to join the Epic monopoly if we want to keep our contracts. And this when last time I went to SFDPH in person I literally had to step over junkies shooting up on the street a couple blocks away.
On the bright side, Epic seems more functional than the Avatar system it replaced (made national headlines for its botched implementation, SFDPH made it even worse when they completely borked their internal Avatar server migration around 2019 because they didn't know how to properly load-balance using NGINX, maybe 1 in 200 access attempts would succeed).
throwaway984393
[dead]
nielsbot
Rather than debate the finer points of whether this guy has a conflict of interest, why not just find a public policy expert?