Health
‘Major Trustee, Please Prioritize’: How NYU’s E.R. Favors the Rich
In New York College’s busy Manhattan emergency division, Room 20 is particular.
Steps away from the hospital’s ambulance bay, the room is outfitted with gear to carry out important procedures or isolate these with extremely infectious illnesses.
Medical doctors say Room 20 is often reserved for 2 sorts of sufferers: These whose lives are on the road. And those that are V.I.P.s.
In September 2021, docs have been alerted that Kenneth G. Langone, whose donations to the college’s hospital system had led it to be renamed in his honor, was en route. The octogenarian had abdomen ache, and Room 20 was stored empty for him, medical staff stated. Upon his arrival, Mr. Langone was whisked into the room, handled for a bacterial an infection and despatched residence.
The following spring, Senator Chuck Schumer accompanied his spouse, who had a fever and was wanting breath, to the emergency room. As sicker sufferers have been handled within the hallway, the couple have been ushered into Room 20, the place they obtained expedited Covid-19 exams, in line with staff who witnessed the scene. The exams got here again unfavorable.
NYU Langone denies placing V.I.P.s first, however 33 medical staff advised The New York Instances that they’d seen such sufferers obtain preferential therapy in Room 20, one of many largest personal areas within the division. One physician was shocked to seek out an orthopedic specialist within the room awaiting a senior hospital govt’s mom with hip ache. One other described an older hospital trustee who was taken to Room 20 when he was wanting breath after exercising.
The privileged therapy is a part of a broader sample, a Instances investigation discovered. For years, NYU’s emergency room in Manhattan has secretly given precedence to donors, trustees, politicians, celebrities, and their family and friends, in line with 45 medical staff, inside hospital data and different confidential paperwork reviewed by The Instances.
On hospital computer systems, digital medical charts typically specify whether or not sufferers have donated to the hospital or how they’re related to executives, in line with screenshots taken by annoyed docs in recent times and shared with The Instances.
“Main trustee, please prioritize,” stated one from July 2020.
Dozens of docs stated they felt strain to place V.I.P.s first. Many witnessed such sufferers leaping forward of sicker individuals for CT scans and M.R.I.s. Some stated medical specialists, usually in brief provide, have been diverted from different instances to take care of delicate complaints from high-priority sufferers.
Many hospitals provide unique concierge companies to the wealthy. However emergency rooms are constructed across the premise of medical triage: that the sickest sufferers, no matter their potential to pay, are handled first. Everybody else has to attend.
At NYU Langone, one of many nation’s pre-eminent medical establishments, some docs stated that course of had been upended.
“As emergency division docs, now we have two vital expertise: triage and resuscitation,” stated Dr. Kimbia Arno, who labored within the emergency room in 2020 and 2021. “This technique is in direct defiance of what we do and what we have been educated to do.”
“The stress on suppliers is dangerous,” stated Dr. Anand Swaminathan, a doctor within the emergency room from 2009 to 2018. “It’s the truth that I get a number of calls, from a number of individuals, asking me to drop the whole lot to deal with a V.I.P.”
Eleven docs advised The Instances that they’d resigned from the emergency division partially as a result of they objected to favoring V.I.P.s.
Some residents — docs of their first years of follow — complained to the nationwide group that accredits medical coaching packages. The frustrations included NYU’s “particular therapy” of trustees, donors and their households, in line with paperwork reviewed by The Instances. The group’s subsequent investigation confirmed that some docs “felt pressured to see V.I.P. sufferers first” and that they “expertise a way of worry and intimidation and retaliation for not expediting V.I.P. affected person care.”
The Inner Income Service requires nonprofit hospitals like NYU, which avoids $250 million a yr in taxes, to learn their communities. A main strategy to meet the requirement is to run an emergency room that’s open to everybody.
However at NYU, poor individuals typically battle to be seen. For instance, ambulance staff stated nurses within the emergency room routinely discouraged them from dropping off homeless or intoxicated sufferers. As an alternative, they have been usually shuttled to close by Bellevue, a strained public hospital that primarily treats the poor.
A Instances sequence this yr has discovered that many nonprofit hospitals have strayed from their charitable roots to maximise income. Big hospital techniques illegally despatched exorbitant payments to Medicaid sufferers. They used hospitals in poor neighborhoods to qualify for steep drug reductions, funneling the proceeds into wealthier neighborhoods. Others reduce workers to dangerously low ranges.
NYU’s chief of hospital operations, Dr. Fritz François, denied that the hospital favored donors, trustees and different distinguished sufferers. He stated that sufferers obtained therapy based mostly on how sick they have been, no matter their wealth or standing, and that the emergency room handled many low-income and homeless sufferers.
“We shouldn’t have a V.I.P. program,” Dr. François wrote in a letter to The Instances. “We shouldn’t have V.I.P. sufferers. We shouldn’t have V.I.P. flooring. We shouldn’t have V.I.P. rooms. We shouldn’t have V.I.P. medical groups. We don’t provide V.I.P. care.”
Lisa Greiner, a spokeswoman for NYU Langone, confirmed that Mr. Langone had been handled in Room 20, which she stated was “completely acceptable” based mostly on his signs. She stated the room served quite a lot of functions, together with privateness. She stated no affected person, together with Mr. Langone, “has ever been handled in an remoted room on the expense of some other affected person’s care.”
Mr. Langone stated, “As a matter of non-public integrity I’ve by no means requested for any particular therapy on the hospital, they usually have by no means provided.”
Angelo Roefaro, a spokesman for Mr. Schumer, stated the protocol for the senator’s safety element was “to have the senator keep, every time potential, in a safe location.”
Andrew C. Phillips, a lawyer for NYU, stated among the docs who had spoken to The Instances have been motivated to disparage the hospital. Dr. Arno, for instance, had been in a fellowship program and was handed over for a everlasting job, he stated. Mr. Phillips additionally stated Dr. Swaminathan had by no means voiced issues to hospital leaders about V.I.P.s.
Dr. François acknowledged that NYU’s digital medical data typically included notations describing sufferers as “family and friends.” However he stated these labels have been obtainable for all hospital workers — even the cousins of safety guards and housekeepers — and enabled workers to pay courtesy visits to such sufferers.
“Our family and friends don’t obtain totally different or higher medical care,” Dr. François wrote. He added, “Our family and friends don’t skip the triage course of, don’t soar any traces, don’t get positioned in any particular rooms or flooring and don’t get fed any in another way.”
Dozens of docs and different emergency room workers stated that, when it got here to many V.I.P.s, that was merely not true.
An E.R.’s Transformation
In 2007, the New York College Medical Heart was in grave monetary hassle.
Had been it not for royalties from an arthritis drug developed by certainly one of its researchers, the hospital would have misplaced $150 million that yr. The patent’s expiration was looming.
A lifeline got here from Mr. Langone, the founding father of Dwelling Depot and chairman of the hospital’s board of trustees. He and his spouse donated $100 million in 2008, matching a contribution they’d made eight years earlier. The medical heart was renamed NYU Langone.
Mr. Langone turned identified not only for his personal philanthropy — he donated one other $100 million in 2019 — but additionally his potential to steer different rich New Yorkers to donate. Over the following years, he helped the hospital increase $3 billion.
In 2012, the run-down emergency room, on the East River in Midtown Manhattan, was destroyed by Hurricane Sandy. It reopened two years later with extra space and a brand new identify, the Ronald O. Perelman Heart for Emergency Companies, named for the billionaire who financed its building.
The emergency division’s longtime chair, an outspoken champion of serving the needy, stepped down in 2015. Round then, a number of docs stated, they started receiving requests from directors to provide precedence to V.I.P.s.
“Immediately, we began getting these telephone calls that X particular person is coming in, they’re X relation to board member, and we got the sturdy sense that you just needed to push them to the entrance of the road,” stated Dr. Swaminathan, who labored within the emergency room on the time.
NYU was not the one prestigious nonprofit hospital system discovering methods to cater to donors and different rich sufferers.
In San Francisco, the UCSF Medical Heart rewarded donors with sooner entry to prime cardiologists. Stanford Medical Heart gave rich sufferers pink blankets to tell apart them from everybody else. (Spokeswomen for these medical facilities stated they not supplied such perks.)
In the present day, prime New York hospitals like Mount Sinai and NewYork-Presbyterian/Weill Cornell provide luxurious lodging and private concierge companies to sufferers who can afford them.
And emergency room staff at a number of elite tutorial medical facilities stated in interviews that, as at NYU, directors typically requested expedited therapy for well-connected sufferers.
“The hospitals are performing as companies,” stated Dr. Renee Hsia, a professor on the College of California, San Francisco, who researches emergency room care. “They will usually garner way more income from these sufferers which can be enormous donors.”
‘Drop Every part’
The V.I.P. expertise in NYU’s Manhattan emergency room begins earlier than the affected person arrives.
Trustees can use a devoted telephone quantity — the Trustee Entry Line — to alert the hospital they’re coming. Directors then name, textual content and ship messages notifying docs {that a} high-priority affected person is en route, in line with 30 docs. Medical doctors stated that even when these messages didn’t explicitly search precedence therapy, that was how they have been interpreted.
“Only a heads up {that a} VIP/trustee is coming to the ED per notification from the Dean’s workplace and to maintain a watch out for her,” one physician wrote in an digital chat in August 2021, referring to the emergency division. The Instances reviewed a screenshot of the change.
Ms. Greiner, the NYU spokeswoman, stated the trustee line “doesn’t entitle any member to higher or prioritized care.” She stated that the V.I.P. reference within the 2021 message was “colloquial and doesn’t correspond with any particular protocol at our hospital,” and that the sender didn’t “ask for or anticipate particular care, line reducing or something of the kind.”
Medical doctors stated they have been typically required to hold a hospital-issued iPhone that, amongst different issues, was logged into an electronic mail chain that alerted them to incoming V.I.P.s.
“It didn’t matter how busy it was,” stated Dr. Uché Blackstock, who labored within the emergency room from 2010 to 2019. “A V.I.P. was coming, and we needed to drop the whole lot.” She left NYU partly due to frustration with the preferential therapy, she stated.
Ms. Greiner stated that Dr. Blackstock had by no means complained to the hospital about improper prioritization of sufferers and that Dr. Blackstock had herself alerted colleagues on just a few events when her household or mates have been within the emergency room. In response, Dr. Blackstock stated there was a distinction between what she had executed and what she and others perceived as institutional strain to swiftly deal with V.I.P.s.
Some sufferers’ digital medical charts included reminders about their V.I.P. standing, in line with screenshots captured by emergency room docs and shared with The Instances.
“NYUMC BOARD OF TRUSTEE AND IMMEDIATE FAMILY,” learn one notice.
One other: “She is a donor and a prospect for a deliberate present.”
A 3rd: “Escort Wanted” and “Daughter of Trustee.” (Some V.I.P.s have been assigned workers to face by to move them across the hospital, in line with 13 medical staff. Ms. Greiner denied that.)
Two members of NYU Langone’s board of trustees stated in interviews that they’d obtained swift, glorious care on the emergency room. They believed everybody obtained such therapy.
“I didn’t have to attend round for lengthy hours for somebody to come back discuss to me as occurs in different emergency rooms,” stated Bernard Schwartz, who stated he had donated greater than $30 million to NYU Langone. “I believe that’s for all sufferers.”
Mr. Schwartz stated he didn’t suppose his medical document recognized him as a trustee. However he presumed that docs knew who he was.
“I might be upset if that weren’t true,” he stated.
Delayed Resuscitations
NYU’s emergency room usually has greater than 100 sufferers without delay however solely 40 curtained beds, leaving many sufferers to be handled within the hallways.
Not one of the docs The Instances interviewed had ever seen that occur with a V.I.P.
One Thursday evening in April 2018, staff within the emergency room obtained an alert that Mr. Langone could be arriving in about 20 minutes. That they had to determine the place to place different sufferers to make sure that he might have a personal room, in line with two medical staff with direct data of what occurred. When he arrived with a two-centimeter reduce on his thumb, docs shortly stitched him up.
Ms. Greiner stated no different sufferers have been awaiting care throughout Mr. Langone’s go to. The 2 staff advised The Instances that the emergency room had been as busy as typical.
Emergency room staff stated these preparations for V.I.P.s typically delayed important look after sicker sufferers.
In late 2019, docs have been racing to rescue a affected person in cardiac arrest. One pushed the gurney towards one of many personal rooms meant for life-or-death emergencies. One other sat atop the unconscious affected person, performing chest compressions. After they arrived on the room, they might not enter — a V.I.P. occupied it. The affected person survived, however two staff who witnessed the episode stated the delay might have been lethal.
Ms. Greiner stated, “With out the affected person’s data, we can not examine this declare aside from to say that at NYU Langone, there’s one commonplace of look after all sufferers.”
The Instances recognized many comparable examples.
For instance, a relative of somebody on the hospital’s management crew went into the emergency room with chest ache and was promptly taken to a personal room, whilst a person experiencing a life-threatening emergency — a blockage of blood to certainly one of his limbs — was put within the hallway, in line with the accreditation group’s investigation.
One other time, on the instruction of a hospital administrator, a V.I.P. affected person with asymptomatic Covid was seen by pulmonology and infectious-disease specialists who needed to be pulled away from sicker sufferers, in line with two medical staff with direct data of the case.
Ms. Greiner stated that The Instances had not supplied sufficient data for her to have the ability to reply definitively, however that the asymptomatic affected person might need had an underlying sickness.
Dr. Michelle Romeo, who was a resident within the emergency room from 2017 till 2021, recalled when a well-known actor with a headache and low-grade fever jumped to the entrance of the road for a CT scan, reducing off a nursing residence resident who had potential sepsis and had been ready for 3 hours.
The actor requested a spinal faucet, which Dr. Romeo believed was pointless. A supervisor instructed her to do it anyway, she stated.
Each exams confirmed nothing incorrect with the affected person.
Mr. Phillips, the lawyer for NYU, stated Dr. Romeo had an incentive to criticize the hospital as a result of she had not been provided a full-time place after her residency. Dr. Romeo stated she believed she had not been provided the job as a result of she had been outspoken about points together with the therapy of V.I.P.s.
A Public Shaming
Over time, docs in NYU’s emergency room got here to consider there might be career-threatening penalties if well-connected sufferers have been dissatisfied with their therapy.
In October 2019, Dr. Joe Bennett was on the finish of what’s generally known as a shift-change huddle, updating his colleagues on the sufferers he was handing off, when a annoyed V.I.P. approached him. The V.I.P. demanded {that a} member of the family instantly obtain a CT scan, in line with a physician who witnessed the encounter and two others who have been briefed on the matter.
Dr. Bennett defined {that a} sicker affected person was the precedence however that the member of the family would come subsequent.
Quickly after, Dr. Bennett was placed on probation for what NYU stated was a scarcity of professionalism, in line with the three docs. For months, the hospital required him to attend weekly conferences and write essays reflecting on learn how to present skilled therapy.
A few yr later, in December 2020, Dr. Kristin Carmody, who oversaw the schooling of medical residents within the emergency division, was compelled to resign after a affected person complained about having not obtained the extent of consideration or therapy that she anticipated. Dr. Carmody later stated in a wrongful-termination lawsuit that the affected person had been designated as a V.I.P.
Ms. Greiner stated that the affected person’s medical document had not included a friends-and-family label and that Dr. Carmody had been pushed out as a result of she falsely famous on a medical document that she had personally examined the affected person. (Dr. Carmody denies that.)
However contained in the emergency division, her ouster was broadly considered punishment for not sufficiently catering to a V.I.P. affected person.
At a heated workers assembly that month, a senior physician stated Dr. Carmody’s compelled departure gave the impression to be the results of a grievance from “a V.I.P. person who was related to higher-ups,” in line with a recording of the assembly. The physician added, “The clear message is anyone could be taken down.”
Round that point, prime NYU officers commissioned an inside evaluate of the tradition of the emergency division, whose workers have been burned out from the pandemic and sad with their pay.
The investigation documented issues with V.I.P. care, in line with a presentation that Dr. Robert Femia, the chairman of the emergency division, delivered to docs.
Many docs and nurses “dislike the present ‘V.I.P.’ course of as a result of they understand it as disrupting unusual work flows” by which workers triage sufferers based mostly on their medical wants, one slide stated. “They don’t acknowledge that the true situation is that each affected person is a ‘V.I.P.’ affected person.”
‘An NYU Dump’
In the summertime of 2021, just a few months after Dr. Femia’s presentation, an ambulance dropped off a matted homeless affected person at NYU’s emergency room. He had ache in each legs and was having hassle strolling.
A employee checked the person’s important indicators. He was provided Tylenol and discharged, in line with an electronic mail {that a} senior nurse later despatched to greater than 200 colleagues detailing what had occurred.
About an hour later, the person was again. This time, he was seen within the ready room by a social employee, who famous that it was arduous for the person to raise his legs from his wheelchair. Nobody undressed the affected person to look at his legs. He was discharged once more.
It was not till later that day that the hospital admitted him. The person was identified with acute kidney failure and rhabdomyolysis, a probably deadly muscular situation.
Ms. Greiner stated the case had been dealt with appropriately. However medical workers famous that NYU included it in an inside evaluate course of by which docs attempt to be taught from errors.
Medical doctors and nurses described a sample by which homeless sufferers — surefire cash losers for hospitals — typically obtained cursory care, whilst privately insured sufferers with comparable signs have been admitted for pressing therapy.
For poor or homeless sufferers, “there’s strain to see them within the hallway or within the ready room,” stated Dr. Jeremy Branzetti, who ran NYU’s emergency-medicine residency program till final yr. “I’ve by no means seen a V.I.P. affected person within the hallway.” Mr. Phillips, the lawyer for NYU, stated Dr. Branzetti had obtained a poor efficiency evaluate and his contract was not renewed.
Some homeless individuals battle to get into NYU’s emergency room within the first place.
Anthony Almojera, the vice chairman of a union that represents emergency companies officers, stated nurses at NYU reprimanded ambulance crews once they tried to drop off sufferers who appeared homeless or intoxicated.
“I had cases the place the nurse’s first query wasn’t ‘What’s incorrect with the affected person?’ however ‘How come this affected person is being introduced right here?’” Mr. Almojera stated.
One other ambulance employee, who requested anonymity as a result of he nonetheless works with NYU, stated that when he tried to drop off a drunk affected person in October, a nurse demanded to know his badge quantity.
The strain from nurses works: Paramedics who work on public ambulances stated that as an alternative of taking drunk or homeless sufferers to NYU, they routinely dropped them off at Bellevue, which is staffed partially by NYU residents.
NYU’s personal fleet of ambulances, which deal with some 911 calls, additionally take their undesirable sufferers to Bellevue, in line with 4 nurses there.
“There isn’t a day that goes by that we don’t get an NYU dump,” stated Kim Behrens, who has spent greater than a decade as a nurse at Bellevue.
“We deal with undomiciled individuals day by day and provides each effort to take action with dignity, respect and compassion,” Ms. Greiner stated. She additionally pointed to information displaying that NYU treats hundreds of Medicaid-eligible sufferers.
Accreditation in Jeopardy
By 2021, docs had misplaced persistence with the administration’s elevation of V.I.P.s, which they noticed as unethical and harmful to different sufferers. Some give up. Others complained to hospital directors.
Then the Accreditation Council for Graduate Medical Training, which oversees medical coaching packages nationwide, obtained an nameless grievance. One of many 4 allegations was that the V.I.P. system “teaches residents affected person bias,” in line with a letter the council despatched to NYU in November 2021.
The accreditation council interviewed greater than 50 docs, who confirmed that V.I.P.s have been often given precedence. Citing Dr. Carmody’s ouster, they described being afraid {of professional} penalties if they didn’t give preferential therapy to well-connected sufferers.
The council stated that local weather of worry violated the group’s academic requirements for medical residents. And the group stated it was unclear if NYU had taken steps to make sure that the V.I.P. course of wouldn’t hurt sufferers.
In August, the council put NYU’s emergency division on probation, jeopardizing the accreditation of its residency program. It was a uncommon transfer: Final yr, of 12,740 residency packages, simply 25 have been positioned on probation.
NYU has two years to deal with the council’s issues. Dropping the accreditation might value the hospital thousands and thousands of {dollars} a yr in federal funds and doom the residency program, which the hospital depends on to maintain its emergency room working.
Ms. Greiner accused the accreditation council of recycling “false” allegations about V.I.P. sufferers getting particular therapy. The council stated it stood by its findings.
Susan C. Beachy and Kitty Bennett contributed analysis.
Health
FDA Moves Forward With Last-Minute Push to Cut Nicotine Levels in Cigarettes
The Biden administration unveiled a proposal on Wednesday to cut the level of nicotine in cigarettes, a last-minute push on a plan that could meaningfully cut cancer rates nationwide and extend the lives of millions of cigarette smokers.
If finalized, the proposal would require cigarette makers to significantly reduce the levels of nicotine in their products in an effort to make smoking less addictive and less satisfying. Research has suggested that the move would result in fewer people taking up the habit and would help the nation’s roughly 30 million smokers quit or switch to less harmful alternatives like e-cigarettes.
The policy is a centerpiece of antismoking initiatives by Dr. Robert Califf, commissioner of the Food and Drug Administration, who has recounted treating cardiology patients ravaged by smoking during his medical career.
“It’s the biggest thing I’ve ever seen in terms of societal benefit, cost saving and lives saved, and strokes prevented and cancers prevented,” Dr. Califf said.
The policy’s companion effort to ban menthol cigarettes has been set aside indefinitely after vehement opposition from cigarette makers and other opponents, including convenience store retailers.
Whether the nicotine reduction plan would survive the incoming administration of President-elect Donald J. Trump is unclear. Mr. Trump has traditionally been industry friendly and opposed to heavily regulating businesses. In addition, he has had the support of tobacco companies, including Reynolds American, which contributed at least $8 million to Mr. Trump’s main super PAC during the presidential campaign. Reynolds has already expressed its opposition to the proposed requirement.
Mr. Trump’s campaign co-chair and incoming chief of staff, Susie Wiles, is a former lobbyist for Swisher, a company that makes cigars. The rule applies to cigarettes, roll-your-own tobacco, pipe tobacco and cigars (though not premium cigars).
Some public health advocates are holding out hope that the Trump administration will allow the proposal to move forward, given that a previous version was considered by the F.D.A. during his first term. At minimum, officials could continue to allow the public to comment on the initiative without killing it or putting it into effect.
The F.D.A.’s proposal includes projections that by 2100, the nicotine reduction measure would prevent an estimated 48 million young people from starting to smoke. By 2060, the agency also estimates that 1.8 million tobacco-related deaths would be prevented, and that $30 trillion in benefits would accrue over 40 years, mostly from the generation that would not begin smoking.
“We do have an extremely toxic and addictive product with cigarettes that remain on the marketplace, that still kills almost a half a million people a year,” said Dorothy Hatsukami, a tobacco researcher from the University of Minnesota who has studied low-nicotine cigarettes for about 15 years. “So it’s really kind of an unfortunate situation that we haven’t really done anything dramatically about it.”
In 2022, Dr. Califf released an updated proposal to lower nicotine levels, and opposition began to grow almost immediately.
Tobacco companies have viewed the initiative as a major threat to their business. Luis Pinto, a spokesman for Reynolds American, said the proposal would “effectively eliminate legal cigarettes and fuel an already massive illicit nicotine market.”
“These actions would also have a significant negative economic impact on farmers, retailers and others,” he added.
Convenience store retailers have also opposed earlier versions of the proposal, saying they would sustain substantial losses in revenue from a projected decline in cigarette sales.
Congressional Republicans have also tried to thwart restrictions on nicotine levels. In 2023, members of an influential House subcommittee passed a measure that would have prevented the F.D.A. from spending any money to advance limits on nicotine, with nearly all of the supporting votes by Republicans. The Senate did not include the provision in a final budget package.
Still, supporters of the plan point to signs that incoming public health officials may be receptive to it, including to the popularity of Robert F. Kennedy Jr.’s pledge to tackle chronic diseases and improve the health of Americans if he is confirmed to lead the nation’s top health agency. Mr. Trump himself has said that he is personally opposed to cigarette smoking.
“Given these enormous benefits, we urge the incoming Trump administration to move forward in finalizing and implementing this rule,” Yolonda C. Richardson, the president of Campaign for Tobacco-Free Kids, said in a statement. “Few actions would do more to fight chronic diseases such as cancer and cardiovascular disease that greatly undermine health in the United States, and that the incoming administration has indicated should be a priority to address.”
Health
Wildfire health impacts, plus FDA bans red food dye
Fox News’ Health newsletter brings you stories on the latest developments in health care, wellness, diseases, mental health and more.
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– Los Angeles wildfires spark loss and grief, affecting mental health
– Experts warn of physical effects of wildfire smoke
– FDA bans red food dye due to cancer risk: ‘Long time coming’
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Health
Ramaswamy Has a High-Profile Perch and a Raft of Potential Conflicts
Vivek Ramaswamy is the less famous and less wealthy half of the duo of billionaires that President-elect Donald J. Trump has designated to slash government costs.
His better-known co-leader, Elon Musk, stands to benefit from the job in ways that are numerous and glaring. Mr. Musk’s companies have tremendous influence, billions of dollars in government contracts and ongoing battles with federal regulators.
Less attention has been paid to the potential conflicts that could stem from Mr. Ramaswamy’s complex web of financial interests, which span biotechnology, finance and other holdings.
At 39, he is one of the world’s youngest billionaires, having made his fortune in the pharmaceutical industry. As he reaches into the federal bureaucracy that shapes the fortunes of American companies, he could recommend spending cuts that ultimately make him and his investors richer.
Mr. Ramaswamy, who owns a stake currently valued at nearly $600 million in a biotechnology company he started, has called for changes at the Food and Drug Administration that would speed up drug approvals. He could help shape energy policy to promote fossil fuels, making it more attractive for investors to put their money into an oil-and-gas fund, provocatively called DRLL, offered by his investment firm.
And if he were to boost officials who embrace cryptocurrency, it may benefit his firm’s new Bitcoin business.
It is not yet known whether leaders of the so-called Department of Government Efficiency, or DOGE, which is not a governmental department but more of an outside advisory organization, will have to meet the same standard divestment requirements that many high-level federal appointees face.
Mr. Ramaswamy waded into controversy late last month when he blamed American culture for failing to produce enough workers suited for technical jobs. He also endorsed continuing to allow certain skilled immigrants into the U.S. labor market, a position shared by Mr. Musk and Mr. Trump but opposed by immigration hard-liners. The episode raised questions as to how long Mr. Ramaswamy will remain with the DOGE effort.
Mr. Ramaswamy, who two years ago stepped away from running his businesses, declined to say whether he plans to divest from any of his holdings.
With a stake valued at $150 million or more, he is the majority owner of his investment fund, Strive Enterprises, which he branded as a nemesis of liberal politics, and which is suddenly in line with the philosophies now ascendant in Washington. Several of Strive’s financial backers have close ties to the incoming Trump administration.
Investment funds like Strive generate revenue as a percentage of the money they manage. Luring new investors quickly raises the revenues of the firm. Mr. Ramaswamy’s elevated profile advising the Trump administration could help the firm bring in new clients.
Mr. Ramaswamy declined to be interviewed for this article. Strive’s current leadership, Mr. Musk and the Trump transition team also declined to comment.
Anson Frericks, a high school friend of Mr. Ramaswamy’s who co-founded Strive with him and is now a senior adviser at the firm, dismissed concerns about potential conflicts of interest for a firm offering investments in industries under federal regulation.
“We will always have to have a strict separation of church and state and comply with all the rules and regulations,” Mr. Frericks said.
Since being named to jointly lead DOGE, Mr. Ramaswamy had until recently been posting on Mr. Musk’s social media site X, hinting about where he may look to make changes in the government.
He called for slashing regulation, not just cutting government spending. He pointed to federal workers focused on diversity as potential targets for “mass firings.”
And he has been taking aim at the F.D.A. “My #1 issue with FDA is that it erects unnecessary barriers to innovation,” he wrote on X. He criticized the agency’s general requirement that drugmakers conduct two successful major studies to win approval rather than one.
Mr. Ramaswamy founded his biotechnology company, Roivant Sciences, in 2014, betting that he could find hidden gems whose potential had been overlooked by large drugmakers. The idea was to hunt for experimental medications languishing within large pharmaceutical companies, buy them for cheap and spin out a web of subsidiaries to bring them to market.
The venture is best known for a spectacular failure.
In 2015, Mr. Ramaswamy whipped up hype and investment around one of his finds, a potential treatment for Alzheimer’s disease being developed by one of his subsidiaries, Axovant. Two years later, a clinical trial showed that it did not work, erasing more than $1.3 billion in Axovant’s stock value in a single day.
Mr. Ramaswamy personally lost money on paper on the failure, but thanks to the savvy way he had structured his web of companies he and Roivant weathered the storm. Six products have won F.D.A. approval, and today Roivant has a market valuation of $8 billion.
Mr. Ramaswamy sold some of his Roivant stock to take a large payout in 2020, reporting nearly $175 million in capital gains on his tax return that year. But he is still one of the company’s largest shareholders.
If Mr. Ramaswamy recommends changes that speed up drug approvals through DOGE, that could be good news for Roivant, which is developing drugs that might come up for approval during Mr. Trump’s second term. The faster it can get medicines onto the market, the more valuable the company — and Mr. Ramaswamy’s stake in it — stands to become.
Fighting ‘woke’
In 2020, Mr. Ramaswamy started writing opinion pieces attacking the environmental, social and governance, or E.S.G., movement.
He found a perfect foil in the world’s biggest asset manager, BlackRock, and its chief executive, Laurence D. Fink. At the time, Mr. Fink was vocal about pushing companies to rethink their carbon footprints. Mr. Ramaswamy viewed that position as a breach of BlackRock’s duty to try to maximize returns for investors.
Mr. Ramaswamy was taking on a niche subject that was being debated in obscure journals and business school classrooms but one that was hardly front of mind for most investors.
In July 2020, Mr. Ramaswamy asked D.A. Wallach, a health care investor, to read a proposal for what would become his first book, “Woke, Inc.” Mr. Wallach said he was initially skeptical.
“Do average people really care about Larry Fink putting carbon emissions requests on the board of Exxon?” Mr. Wallach recalled wondering at the time. But Mr. Wallach later became a seed investor in Strive, persuaded by Mr. Ramaswamy over dinner at the upscale Polo Lounge at the Beverly Hills Hotel in Southern California.
In 2021, Mr. Ramaswamy stepped down as chief executive of Roivant. He fished around for a new business idea.
A classmate of Mr. Ramaswamy’s from an all-boys Catholic high school in Cincinnati, Mr. Frericks, had worked as an executive at Anheuser-Busch and shared Mr. Ramaswamy’s views about the E.S.G. movement.
Mr. Frericks said they knocked several ideas around: “Merit Airlines,” which would hire the top 5 percent of pilots, regardless of race, sex or background; “Pop Without Politics,” an alternative to Coca-Cola; and a “free-speech” version of Twitter, before Mr. Musk ran with the idea and bought the social media platform.
They ultimately landed on a different idea. They would start an investment firm near Columbus, Ohio, that would court an audience they believed had been neglected by Wall Street: everyday investors and public pension fund managers who were alienated by companies adopting liberal policies pushed by money managers like Mr. Fink.
Mr. Ramaswamy recruited financial backers who now have deep ties to the incoming Trump administration. Among them were Howard Lutnick, whom Mr. Trump has picked to be commerce secretary; the former investment firm of Vice President-elect JD Vance; and other large Republican donors and influential voices, including Doug Deason and the billionaire fund manager Bill Ackman.
Releasing the handcuffs
Strive’s first offering, in August 2022, was the energy fund DRLL.
In television appearances, Mr. Ramaswamy drummed up demand for the fund. He pitched viewers on an opportunity to be part of a renaissance in the American energy sector, which he said had been constrained for too long by “E.S.G. handcuffs.”
The reality was more complicated. Energy stock price growth has been sluggish for reasons that have nothing to do with diversity quotas and emissions caps. For years, U.S. producers spent big in pursuit of growth, costing investors billions and causing many to sour on the industry. Lower oil prices have further reduced the incentive to drill.
And what Mr. Ramaswamy was pitching was more commonplace than he made it sound.
DRLL was a basket of stocks known as an exchange-traded fund, or an E.T.F., an unglamorous investment vehicle that has grown popular among investors looking for less risk than betting on individual stocks. Mr. Ramaswamy’s E.T.F. was nearly identical to popular offerings from BlackRock and other providers, containing a standard mix of stocks like Exxon, Chevron and dozens of other oil and gas companies.
What Strive promised investors in DRLL was essentially a sustained pressure campaign. Strive would meet with chief executives, carefully vote on board seats and shareholder proposals and publicize its efforts, all with the aim of pushing energy companies to shun liberal policies.
“We wanted a seat at the table, to be able to vote on shareholder resolutions, to engage with management, write letters on our views,” Mr. Frericks said.
Mr. Ramaswamy sent an angry letter to Chevron, criticizing the company for how it responded to pressure from climate activists to cap emissions produced by its suppliers and consumers. (Chevron set goals related to how clean those emissions should be, but it didn’t limit them overall.)
In November 2022, Mr. Ramaswamy flew to Houston for a meeting with the Exxon chief executive, Darren Woods. When the oil giant subsequently appointed two Strive-approved board members, Strive declared victory.
As a presidential candidate in mid-2023, Mr. Ramaswamy reported that he had between $5 million and $25 million of his own money invested in DRLL.
From C.E.O. to candidate
Strive employees watched with intrigue, and sometimes tagged along, as Mr. Ramaswamy met with governors, other state officials and wealthy contacts. Often, it wasn’t clear whether the motivation was to seek an investment or perhaps to make connections that could fuel Mr. Ramaswamy’s bigger ambitions.
He set a busy pace, using private jets to crisscross the United States and traveling with a body guard. He hated staying in hotel rooms, so if he traveled he would nearly always fly home to sleep.
He met with heads of public pension funds in Republican-led states, urging them to move their money to Strive from providers like BlackRock.
But Strive’s pitch struggled to land with that audience. According to S&P Global’s Capital IQ database, only one public pension fund, in Texas, appears to have put money in a Strive E.T.F., and it quickly withdrew its position. One official at a public pension fund in a Republican-led state who met with a Strive representative said it was confusing how Strive was different from the competition, or how its mission would generate the best returns.
Employees at Strive were often surprised by the relative extravagance of Strive’s spending.
Before the firm was generating much revenue, many employees were issued a company credit card and had the impression that they could spend freely. The firm built out a new office, with room for some 100 employees, despite having a staff of about 35.
Mr. Ramaswamy was a regular presence in Strive’s office, often dressed in shorts and flip flops.
In December 2022, the firm held a holiday party in downtown Columbus at The Vault, a former bank repurposed as a lavish event space. In front of his delighted colleagues that evening, Mr. Ramaswamy performed a karaoke rendition of Eminem’s “Lose Yourself.”
Employees were given a pointed holiday gift: a copy of a book, “Fossil Future” by Alex Epstein, arguing for more oil, coal and natural gas consumption.
Two months later, Mr. Ramaswamy announced that he was running for president. He stepped down as chairman and chief executive of Strive. That summer, as a candidate on the campaign trail, he reprised his performance of “Lose Yourself” onstage at the Iowa State Fair.
A crypto arm
As Mr. Ramaswamy’s political profile has risen, the ideas he railed against have receded on Wall Street and in American life.
In 2023, Mr. Fink of BlackRock said that he would no longer use the term E.S.G. Last week, BlackRock pulled out of an international climate coalition supporting the goal of net zero greenhouse gas emissions by 2050, while Meta and Amazon ended internal diversity programs.
Mr. Ramaswamy has taken credit for the change of heart. “Strive’s success, I think, was probably the single greatest factor in the United States of America that turned E.S.G. from the dogma,” he said.
Today, Strive manages over $2 billion in assets, a strong start for a new player in the market, but a drop in the bucket compared with the largest money managers. BlackRock, by comparison, manages $11.6 trillion in assets.
“Strive did better than we thought it would,” said Eric Balchunas, a Bloomberg analyst who tracks E.T.F.s.
But the growth of Strive, which in some cases charges higher fees than its competitors for its E.T.F.s, has been constrained by a mundane reality: Many E.T.F. investors are just looking for low fees and the ability to swiftly and easily make transactions. Politics isn’t a factor.
“Most of them don’t care,” Mr. Balchunas said. “People just want cheap access to stocks.”
After years in the unglamorous world of traditional E.T.F.s, Strive has been expanding into a more buzzy world of finance after raising $30 million in new funding from a group of backers including Cantor Fitzgerald, the financial services firm led by Mr. Lutnick.
Late last year, Strive poached the leadership team of a firm in Dallas that managed money for wealthy families and individuals, providing Strive a new arm, and a new headquarters, in Texas.
The move got Strive into cryptocurrency, which helped finance Mr. Trump’s campaign but has faced regulatory headwinds in Washington. The firm’s website now points to its “focus as a transformative Bitcoin-company.”
It also opened up a new potential area for conflict in Mr. Ramaswamy’s role at DOGE: the potential power to alter the approach of agencies that regulate the financial sector.
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