AMA Learns Tough Lesson, Treads Carefully Into Corporate Relationships

Acutely aware that it went too far, the American Medical Association is in image-repair mode as it clarifies its position on corporate arrangements. For the AMA, the Sunbeam fiasco has become a case study in how important it is for the physician organization to retain control of its beloved seal of the serpent on the staff.

Although it is still nursing its bumps and bruises from last summer's failed endorsement deal that has lead to a $20 million lawsuit from Sunbeam Corp., the AMA is determined to set the record straight to all who will listen. (Top national dailies like The New York Times, Wall Street Journal and Washington Post blasted the deal, questioning the AMA's moral and ethical posture as a not-for-profit physician organization.)

To clarify its position, interim guidelines were adopted in October that barred the endorsement of any health or medical products unless approved by the board.

The revised guidelines, which will be presented at AMA's annual meeting this June and stress its non-endorsement stance, have been trumpeted to its membership of 650,000 physicians and to the media. Since the AMA has stuck to its non-endorsement guns, the media has backed down.

But corporate arrangements can be essential to deep-pocket funding and getting the word out about critical health advocacy initiatives and programs. The AMA has sponsored child care safety programs with General Motors on how to use car seats (not promoting any manufacturers) and developed Web sites on hot topics like HIV and asthma with pharmaceutical companies where the AMA retained editorial control, says Dr. Thomas R. Reardon, an AMA board chair.

Public Accountability

Morals and ethics are a key consideration in corporate endorsement situations, especially for hospitals with strong image obligations to their communities, stresses Rick Wade, senior VP for communications at the American Hospital Association.

"It's hard to know how a product will be marketed what the community impact will be."

The AHA's position on corporate relationships is membership- instead of consumer-focused. The trade association will not endorse commercial products but will enter into collaborative arrangements that allow its membership of 5,000 hospitals to benefit from a wide range of services from insurance options to compliance programs.(AMA, Dr. Thomas Reardon, 312/464-5382; AHA, Rick Wade, 202/626-2339)