It provides consulting services to both medical insurers and government organizations. One of its customer is the Veterans Administration and many high level VA and other agency employees have worked for this corporation.
That would be people like Bob McDonald, the new VA secretary. Beth Cobert is the new deputy director for management at the Office of Management and Budget. Tommy Sowers, who oversees the public affairs office and other vital programs for the Department of Veterans Affairs, was a former McKinsey consultant.
According to BusinessWeek the firm is "ridiculed, reviled, or revered . . ."
The Wall Street Journal said McKinsey is seen as “elite, loyal and secretive" while The News Observer said McKinsey's internal culture was “collegiate and ruthlessly competitive” and sometimes described as arrogant.
Why would an elite company like McKinsey and company, who competes with Mitt Romney's Bain and Company, be involved in the VA? First of all, medical insurance is big business. According to McKinsey the average US household, spends more annually on health insurance than on its home mortgage.
The VA is one of McKinsey's success stories. Or is it?
McKinsey was cited in a February 2007 CNN article for developing controversial car insurance practices that State Farm and Allstate used in the mid-1990s to avoid paying claims involving soft tissue injury.
These are tactics that should not be used by the VA. Or for that matter, in government at all.
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