Many HHS workers leaving for private sector, raising bias concerns.
Did you know that one-third of federal health employees have left their positions at the Department of Health and Human Services (HHS) to work in the private industry? A recent study published in Health Affairs reveals this concerning trend. (pdf)
The study raises concerns about a revolving door of entries and departures within the agency, which could potentially lead to biases in decision-making regarding the nation’s healthcare. Genevieve P. Kanter, an associate professor at the University of Southern California, explains, ”Government staff exits to industry pose a risk to unbiased government decision-making because individuals seeking to leave may make decisions that favor industry employers as a way to enhance their job prospects.”
On the other hand, entries from industry to government also pose a risk to unbiased decision-making if there is a feeling of pressure due to personal or professional ties to former industry employers.
Industry Exit Rates Set the Stage for Regulatory Capture
This back-and-forth movement between sectors sets the stage for what is known as regulatory capture. This phenomenon occurs when a regulatory agency, originally created to protect the public’s interests, starts prioritizing or working in favor of special interest groups, political groups, or dominant industry firms.
Kanter and her co-author, Daniel Carpenter, a professor at Harvard University, conducted a thorough examination of the career histories of 766 employees appointed to various positions within HHS between 2004 and 2020.
During this time frame, 15 percent of the individuals assessed had previously worked in the private industry before joining agencies like the Food and Drug Administration, Centers for Disease Control and Prevention (CDC), Centers for Medicare and Medicaid Services (CMS), and other HHS departments.
To track employee movement, the researchers referred to the “United States Government Policy and Supporting Positions,” also known as the Plum Book. This publication, released every four years after a presidential election, lists all noncompetitive appointment positions in the federal government.
Kanter and Carpenter focused on data from 2004, 2008, 2012, 2016, and 2020, covering the presidential terms of George W. Bush, Barack Obama, and Donald Trump.
To gather more information about each appointee, the researchers examined LinkedIn profiles, bios, press releases, and organization announcements available on the internet.
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