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  • January 2001 (Revised October 2002)
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The American Medical Association-Sunbeam Deal (A): Serpent on the Staff Meets Chainsaw Al

By: Ashish Nanda and Kimberly A. Haddad
  • Format:Print
  • | Language:English
  • | Pages:16
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Abstract

Facing dwindling membership and looking to increase its revenue, the American Medical Association (AMA) signed an endorsement deal with Sunbeam Corp., a leader in the small home appliance industry, in August 1997. In the deal, the AMA would receive significant royalties from Sunbeam in exchange for the use of its seal on Sunbeam's home health-care products. Critics protested that this deal posed a conflict of interest before the AMA. Supporters argued, however, that the deal was a good way for the AMA to ease the association's financial troubles. Furthermore, the deal would be beneficial to patients because it encouraged people to monitor their own health.

Keywords

Conflict of Interests; Organizations; Health Care and Treatment; Health Industry; United States

Citation

Nanda, Ashish, and Kimberly A. Haddad. "The American Medical Association-Sunbeam Deal (A): Serpent on the Staff Meets Chainsaw Al." Harvard Business School Case 801-326, January 2001. (Revised October 2002.)
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About The Author

Ashish Nanda

Strategy
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Related Work

    • January 2001 (Revised October 2002)
    • Faculty Research

    The American Medical Association-Sunbeam Deal (A): Serpent on the Staff Meets Chainsaw Al

    By: Ashish Nanda and Kimberly A. Haddad
    • January 2001 (Revised January 2002)
    • Faculty Research

    The American Medical Association-Sunbeam Deal (B): The Deal Collapses

    By: Ashish Nanda and Kimberly A. Haddad
    • September 2001 (Revised January 2002)
    • Faculty Research

    The American Medical Association-Sunbeam Deal (C): Denouement

    By: Ashish Nanda and Kimberly A. Haddad
Related Work
  • The American Medical Association-Sunbeam Deal (A): Serpent on the Staff Meets Chainsaw Al By: Ashish Nanda and Kimberly A. Haddad
  • The American Medical Association-Sunbeam Deal (B): The Deal Collapses By: Ashish Nanda and Kimberly A. Haddad
  • The American Medical Association-Sunbeam Deal (C): Denouement By: Ashish Nanda and Kimberly A. Haddad
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