March 1996 AAOS Report

Academy tax status to change "if or when appropriate"

At the second Business Meeting in Atlanta, the Academy fellowship approved a change in the organzation's tax status to 501 ©(6) from 501 ©(3) "if or when the Board of Directors determines it is strategically appropriate." The Resolutions Committee had recommended that the Academy "shall begin the timely and fiscal appropriate change" in the tax status "when the board determines it is strategically appropriate." Paul C. Collins, MD, offered the "if or when" amendment because of concern about the impact such a change might have on litigation involving the Academy. Newton C. McCollough III, MD, supported the amendment, saying the issue was very complex and the fellowship should defer to the Board of Directors not only about when, but whether to make a change in the tax status. Bernard F. Morrey, MD, said the Resolution Committee's version was a mandate to change, and he favored the amendment which provided the board flexibility on the issue. William C. Collins, MD, chairman of the Board of Councilors, favored the Resolutions Committee resolution as it was written. The fellowship also approved a resolution for the Academy to support and endorse legislation that would prohibit the dismissal of physicians who are members of managed care organization panels without due process, prohibit financial incentives by a managed care organization which would deny or interfere with the provision of appropriate medical care, and would prohibit any policies, loyalty oaths, or gag clauses of a managed care organization which would impede or interfere with the physician-patient relationship.

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