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WBMD » Topics » Failure to maintain CME accreditation could adversely affect Medscape, LLCs ability to provide online CME offerings

This excerpt taken from the WBMD 8-K filed Jul 2, 2009.
Failure to maintain CME accreditation could adversely affect Medscape, LLC’s ability to provide online CME offerings
 
Medscape, LLC’s continuing medical education (or CME) activities are planned and implemented in accordance with the current Essential Areas and Policies of the Accreditation Council for Continuing Medical Education, or ACCME, which oversees providers of CME credit, and other applicable accreditation standards. ACCME’s standards for commercial support of CME are intended to ensure, among other things, that CME activities of ACCME-accredited providers, such as Medscape, LLC, are independent of “commercial interests,” which are defined as entities that produce, market, re-sell or distribute healthcare goods and services, excluding certain organizations. “Commercial interests,” and entities owned or controlled by “commercial interests,” are ineligible for accreditation by the ACCME. The standards also provide that accredited CME providers may not place their CME content on Web sites owned or controlled by a “commercial interest.” In addition, accredited CME providers may not ask “commercial interests” for speaker or topic suggestions, and are also prohibited from asking “commercial interests” to review CME content prior to delivery.
 
From time to time, ACCME revises its standards for commercial support of CME. As a result of certain past ACCME revisions, we adjusted our corporate structure and made changes to our management and operations intended to allow Medscape, LLC to provide CME activities that are developed independently from programs developed by its sister companies, which may not be independent of “commercial interests.” We believe that these changes allow Medscape, LLC to satisfy the applicable standards.


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In June 2008, the ACCME published for comment several proposals, including the following:
 
  •  The ACCME stated that due consideration should be given to eliminating commercial support of CME.
 
  •  The ACCME proposed that: (a) accredited providers must not receive communications from commercial interests announcing or prescribing any specific content that would be a preferred, or sought-after, topic for commercially supported CME (e.g., therapeutic area, product-line, patho-physiology); and (b) receiving communications from commercial interests regarding a commercial interest’s internal criteria for providing commercial support would also not be permissible.
 
The comment period for these proposals ended on September 12, 2008, and the ACCME has determined not to take any action as to these proposals at this point. However, in April 2009, the ACCME published for comment several other proposals, including the following:
 
  •  “Commercial Support-Free” Designation.  In order to clarify the distinction between CME that does include relationships with industry from CME that does not include relationships with industry, the ACCME is considering creating a new designation and review process for CME providers that wish to identify their program of CME as one that does not utilize funds donated by commercial interests. The designation would be termed: “Commercial Support-Free.” The ACCME has indicated that a range of standards for “Commercial Support-Free” CME are possible, including for example: (1) the CME provider not accepting any commercial support for any CME activity, or any part of its CME program; and (2) the CME provider not using funds from advertising or promotion, paid by commercial interests, to underwrite the costs of CME.
 
  •  Independent CME Funding Entity.  The ACCME is considering creating a granting entity that would accept unrestricted donations for the purpose of funding CME. The funds would be distributed to ACCME recognized and accredited organizations for development and presentation of ACCME-compliant CME. The ACCME is proposing for comment that the entity would: (1) be independent of the ACCME; (2) not provide funds to the ACCME; (3) be managed by its own governance structure; (4) establish its own granting criteria reflecting practice gaps established through methods consistent with ACCME’s content validation policies; and (5) fund CME done for U.S. learners.
 
The comment period for these proposals ended on May 21, 2009. We cannot predict the ultimate outcome of the process, including what other alternatives may be considered by ACCME as a result of comments it has received. The elimination of, or restrictions on, commercial support for CME could adversely affect the volume of sponsored online CME programs implemented through our Web sites.
 
Medscape, LLC’s current ACCME accreditation expires at the end of July 2010. In order for Medscape, LLC to renew its accreditation, it will be required to demonstrate to the ACCME that it continues to meet ACCME requirements. If Medscape, LLC fails to maintain its status as an accredited ACCME provider (whether at the time of such renewal or at an earlier time as a result of a failure to comply with existing or additional ACCME standards), it would not be permitted to accredit CME activities for physicians and other healthcare professionals. Instead, Medscape, LLC would be required to use third parties to provide such CME-related services. That, in turn, could discourage potential supporters from engaging Medscape, LLC to develop CME or education-related activities, which could have a material adverse effect on our business.
 
This excerpt taken from the WBMD 10-Q filed May 11, 2009.
Failure to maintain CME accreditation could adversely affect Medscape, LLC’s ability to provide online CME offerings
 
Medscape, LLC’s continuing medical education (or CME) activities are planned and implemented in accordance with the current Essential Areas and Policies of the Accreditation Council for Continuing Medical Education, or ACCME, which oversees providers of CME credit, and other applicable accreditation standards. ACCME’s standards for commercial support of CME are intended to ensure, among other things, that CME activities of ACCME-accredited providers, such as Medscape, LLC, are independent of “commercial interests,” which are defined as entities that produce, market, re-sell or distribute healthcare goods and services, excluding certain organizations. “Commercial interests,” and entities owned or controlled by “commercial interests,” are ineligible for accreditation by the ACCME. The standards also provide that accredited CME providers may not place their CME content on Web sites owned or controlled by a “commercial interest.” In addition, accredited CME providers may not ask “commercial interests” for speaker or topic suggestions, and are also prohibited from asking “commercial interests” to review CME content prior to delivery.
 
From time to time, ACCME revises its standards for commercial support of CME. As a result of certain past ACCME revisions, we adjusted our corporate structure and made changes to our management and operations intended to allow Medscape, LLC to provide CME activities that are developed independently from programs developed by its sister companies, which may not be independent of “commercial interests.” We believe that these changes allow Medscape, LLC to satisfy the applicable standards.
 
In June 2008, the ACCME published for comment several proposals, including the following:
 
  •  The ACCME stated that due consideration should be given to eliminating commercial support of CME.
 
  •  The ACCME proposed that: (a) accredited providers must not receive communications from commercial interests announcing or prescribing any specific content that would be a preferred, or sought-after, topic for commercially supported CME (e.g., therapeutic area, product-line, patho-physiology); and (b) receiving communications from commercial interests regarding a commercial interest’s internal criteria for providing commercial support would also not be permissible.


42

Table of Contents

 
The comment period for these proposals ended on September 12, 2008, and the ACCME has determined not to take any action as to these proposals at this point. However, in April 2009, the ACCME published for comment several other proposals, including the following:
 
  •  “Commercial Support-Free” Designation.  In order to clarify the distinction between CME that does include relationships with industry from CME that does not include relationships with industry, the ACCME is considering creating a new designation and review process for CME providers that wish to identify their program of CME as one that does not utilize funds donated by commercial interests. The designation would be termed: “Commercial Support-Free.” The ACCME has indicated that a range of standards for “Commercial Support-Free” CME are possible, including for example: (1) the CME provider not accepting any commercial support for any CME activity, or any part of its CME program; and (2) the CME provider not using funds from advertising or promotion, paid by commercial interests, to underwrite the costs of CME.
 
  •  Independent CME Funding Entity.  The ACCME is considering creating a granting entity that would accept unrestricted donations for the purpose of funding CME. The funds would be distributed to ACCME recognized and accredited organizations for development and presentation of ACCME-compliant CME. The ACCME is proposing for comment that the entity would: (1) be independent of the ACCME; (2) not provide funds to the ACCME; (3) be managed by its own governance structure; (4) establish its own granting criteria reflecting practice gaps established through methods consistent with ACCME’s content validation policies; and (5) fund CME done for U.S. learners.
 
The comment period for these proposals ends on May 21, 2009. We cannot predict the ultimate outcome of the process, including what other alternatives may be considered by ACCME as a result of comments it has received. The elimination of, or restrictions on, commercial support for CME could adversely affect the volume of sponsored online CME programs implemented through our Web sites.
 
Medscape, LLC’s current ACCME accreditation expires at the end of July 2010. In order for Medscape, LLC to renew its accreditation, it will be required to demonstrate to the ACCME that it continues to meet ACCME requirements. If Medscape, LLC fails to maintain its status as an accredited ACCME provider (whether at the time of such renewal or at an earlier time as a result of a failure to comply with existing or additional ACCME standards), it would not be permitted to accredit CME activities for physicians and other healthcare professionals. Instead, Medscape, LLC would be required to use third parties to provide such CME-related services. That, in turn, could discourage potential supporters from engaging Medscape, LLC to develop CME or education-related activities, which could have a material adverse effect on our business.
 
These excerpts taken from the WBMD 10-K filed Feb 27, 2009.
Failure to maintain CME accreditation could adversely affect Medscape, LLC’s ability to provide online CME offerings
 
Medscape, LLC’s continuing medical education (or CME) activities are planned and implemented in accordance with the current Essential Areas and Policies of the Accreditation Council for Continuing Medical Education, or ACCME, which oversees providers of CME credit, and other applicable accreditation standards. ACCME’s standards for commercial support of CME are intended to ensure, among other things, that CME activities of ACCME-accredited providers, such as Medscape, LLC, are independent of “commercial interests,” which are defined as entities that produce, market, re-sell or distribute healthcare goods and services, excluding certain organizations. “Commercial interests,” and entities owned or controlled by “commercial interests,” are ineligible for accreditation by the ACCME. The standards also provide that accredited CME providers may not place their CME content on Web sites owned or controlled by a “commercial interest.” In addition, accredited CME providers may not ask “commercial interests” for speaker or topic suggestions, and are also prohibited from asking “commercial interests” to review CME content prior to delivery.
 
From time to time, ACCME revises its standards for commercial support of CME. As a result of certain past ACCME revisions, we adjusted our corporate structure and made changes to our management and operations intended to allow Medscape, LLC to provide CME activities that are developed independently from


36

Table of Contents

programs developed by its sister companies, which may not be independent of “commercial interests.” We believe that these changes allow Medscape, LLC to satisfy the applicable standards.
 
In June 2008, the ACCME published for comment several proposals, including the following:
 
  •  Potential New Paradigm for Commercial Support:  The ACCME stated that due consideration should be given to eliminating commercial support of CME. To frame the debate, the ACCME proposed several possible scenarios: (a) maintaining the current system of commercial support; (b) completely eliminating commercial support; (c) a new paradigm that provides for commercial support if the following conditions are met: (1) educational needs are identified and verified by organizations that do not receive commercial support and are free of financial relationships with industry; (2) the CME addresses a professional practice gap of a particular group of learners that is corroborated by bona fide performance measurements of the learners’ own practice; (3) the CME content is from a continuing education curriculum specified by a bona fide organization or entity; and (4) the CME is verified as free of commercial bias; and (d) an alternative new paradigm in which the four conditions described above would provide a basis for a mechanism to distribute commercial support derived from industry-donated, pooled funds.
 
  •  Defining Appropriate Interactions between ACCME Accredited Providers and Commercial Supporters.  The ACCME has proposed that: (a) accredited providers must not receive communications from commercial interests announcing or prescribing any specific content that would be a preferred, or sought-after, topic for commercially supported CME (e.g., therapeutic area, product-line, patho-physiology); and (b) receiving communications from commercial interests regarding a commercial interest’s internal criteria for providing commercial support would also not be permissible.
 
The comment period for these proposals ended on September 12, 2008. The comments submitted to the ACCME indicated significant backing from the medical profession for commercially-supported CME and, accordingly, we believe that it is unlikely that a proposal for complete elimination of such support would be adopted. However, we cannot predict the ultimate outcome of the process, including what other alternatives may be considered by ACCME as a result of comments it has received. The elimination of, or restrictions on, commercial support for CME could adversely affect the volume of sponsored online CME programs implemented through our Web sites.
 
Medscape, LLC’s current ACCME accreditation expires at the end of July 2010. In order for Medscape, LLC to renew its accreditation, it will be required to demonstrate to the ACCME that it continues to meet ACCME requirements. If Medscape, LLC fails to maintain its status as an accredited ACCME provider (whether at the time of such renewal or at an earlier time as a result of a failure to comply with existing or additional ACCME standards), it would not be permitted to accredit CME activities for physicians and other healthcare professionals. Instead, Medscape, LLC would be required to use third parties to provide such CME-related services. That, in turn, could discourage potential supporters from engaging Medscape, LLC to develop CME or education-related activities, which could have a material adverse effect on our business.
 
Failure
to maintain CME accreditation could adversely affect Medscape,
LLC’s ability to provide online CME offerings


 



Medscape, LLC’s continuing medical education (or CME)
activities are planned and implemented in accordance with the
current Essential Areas and Policies of the Accreditation
Council for Continuing Medical Education, or ACCME, which
oversees providers of CME credit, and other applicable
accreditation standards. ACCME’s standards for commercial
support of CME are intended to ensure, among other things, that
CME activities of ACCME-accredited providers, such as Medscape,
LLC, are independent of “commercial interests,” which
are defined as entities that produce, market, re-sell or
distribute healthcare goods and services, excluding certain
organizations. “Commercial interests,” and entities
owned or controlled by “commercial interests,” are
ineligible for accreditation by the ACCME. The standards also
provide that accredited CME providers may not place their CME
content on Web sites owned or controlled by a “commercial
interest.” In addition, accredited CME providers may not
ask “commercial interests” for speaker or topic
suggestions, and are also prohibited from asking
“commercial interests” to review CME content prior to
delivery.


 



From time to time, ACCME revises its standards for commercial
support of CME. As a result of certain past ACCME revisions, we
adjusted our corporate structure and made changes to our
management and operations intended to allow Medscape, LLC to
provide CME activities that are developed independently from





36




Table of Contents






programs developed by its sister companies, which may not be
independent of “commercial interests.” We believe that
these changes allow Medscape, LLC to satisfy the applicable
standards.


 



In June 2008, the ACCME published for comment several proposals,
including the following:


 


























  • 
Potential New Paradigm for Commercial
Support:  The ACCME stated that due consideration
should be given to eliminating commercial support of CME. To
frame the debate, the ACCME proposed several possible scenarios:
(a) maintaining the current system of commercial support;
(b) completely eliminating commercial support; (c) a
new paradigm that provides for commercial support if the
following conditions are met: (1) educational needs are
identified and verified by organizations that do not receive
commercial support and are free of financial relationships with
industry; (2) the CME addresses a professional practice gap
of a particular group of learners that is corroborated by bona
fide performance measurements of the learners’ own
practice; (3) the CME content is from a continuing
education curriculum specified by a bona fide organization or
entity; and (4) the CME is verified as free of commercial
bias; and (d) an alternative new paradigm in which the four
conditions described above would provide a basis for a mechanism
to distribute commercial support derived from industry-donated,
pooled funds.
 
  • 
Defining Appropriate Interactions between ACCME Accredited
Providers and Commercial Supporters.  The ACCME
has proposed that: (a) accredited providers must not
receive communications from commercial interests announcing or
prescribing any specific content that would be a preferred, or
sought-after, topic for commercially supported CME (e.g.,
therapeutic area, product-line, patho-physiology); and
(b) receiving communications from commercial interests
regarding a commercial interest’s internal criteria for
providing commercial support would also not be permissible.


 



The comment period for these proposals ended on
September 12, 2008. The comments submitted to the ACCME
indicated significant backing from the medical profession for
commercially-supported CME and, accordingly, we believe that it
is unlikely that a proposal for complete elimination of such
support would be adopted. However, we cannot predict the
ultimate outcome of the process, including what other
alternatives may be considered by ACCME as a result of comments
it has received. The elimination of, or restrictions on,
commercial support for CME could adversely affect the volume of
sponsored online CME programs implemented through our Web sites.


 



Medscape, LLC’s current ACCME accreditation expires at the
end of July 2010. In order for Medscape, LLC to renew its
accreditation, it will be required to demonstrate to the ACCME
that it continues to meet ACCME requirements. If Medscape, LLC
fails to maintain its status as an accredited ACCME provider
(whether at the time of such renewal or at an earlier time as a
result of a failure to comply with existing or additional ACCME
standards), it would not be permitted to accredit CME activities
for physicians and other healthcare professionals. Instead,
Medscape, LLC would be required to use third parties to provide
such
CME-related
services. That, in turn, could discourage potential supporters
from engaging Medscape, LLC to develop CME or education-related
activities, which could have a material adverse effect on our
business.


 




EXCERPTS ON THIS PAGE:

8-K
Jul 2, 2009
10-Q
May 11, 2009
10-K (2 sections)
Feb 27, 2009

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