- © 2004 Canadian Medical Association or its licensors
The CMAJ is poised to enter the world of profit-driven companies on Jan. 1 when CMA Publications will be sold for $4.2 million to the CMA's financial investment arm, CMA Holdings.
It's hoped the move will ultimately generate adequate resources for necessary re-investment in CMAJ so it can retain its status as one of the world's leading medical journals, says editor John Hoey. “If we start running it at a profit, some of those profits will go back into the journal and make it stronger.”
CMA Secretary-General Bill Tholl says the shifting landscape of the medical publishing industry, as well as the prospect of generating publishing profits for use in delivering other member services, prompted the decision to sell CMA Publications.
Government reductions in postal subsidies and the possible elimination of federal grants (which collectively amounted to roughly $500 000 year), mean that CMAJ could potentially be a long-term drain on association coffers, particularly with the brand-name pharmaceutical industry drastically scaling back journal advertising outlays, Tholl said.
Moving to a “for-profit model” of operations will allow the $10-million per year publications group to achieve a firmer financial footing, Tholl added. Along with tax breaks accruing from commercial status, the group anticipates exploring new advertising markets, as well as possible revenue streams in the form of new electronic products and expanded international sales, particularly in emerging markets such as China, Tholl said. “We think there's a tremendous opportunity to diversify our revenue sources.”
Graham Morris, president of CMA Publications, says although CMAJ will continue to serve as the “flagship” of the publications group, future profits will be reinvested in either acquisitions or the creation of new titles. Morris, who took on the job Apr. 1, doesn't see the need to increase staff at present. “But clearly if we decide to add another publication different from the CMAJ on another topic, then we'd have to get more staff.”
In addition to CMAJ, CMA Publications produces books and 5 specialty journals.
More immediate objectives include publishing a number of special print products next year, on topics such as the impact of information technology on medical practice and alternative payment plans, Morris added.
The CMAJ Oversight Committee will continue to operate, thereby ensuring editorial independence and allaying potential conflicts with political objectives of the association's lobbying arm (CMAJ 2003;168[3]:287-8).
Physicians will continue to receive their free subscription to CMAJ as a benefit of association membership “for the foreseeable future,” Tholl says. — Wayne Kondro, Ottawa