"It is troubling, at best, for an organisation that for the most part serves the kind of food associated with increasing weight and an increased burden of diseases within our population to be linked with the health services," McKibben said.
She said the fast-food giant could give financial support, but should not have naming rights.
"Their branding should not be used. If their intentions are truly altruistic, then this won't be an issue," McKibben said.
Ronald McDonald House Charities chief executive Wayne Howett said his organisation had had "initial positive conversations" with Southern DHB about the possibility of a house in Dunedin.
"We look forward to progressing conversations at a later date in line with Southern DHB's timelines [for the new Dunedin Hospital]."
Southern District Health Board chief executive Chris Fleming said the board had not been "formally approached" on the matter but would consider any such proposal in due course.
Dunedin mother Sheryl Cawte was dismayed by the stance taken by public health advocates.
"[Ronald McDonald House] is one of the greatest services that we have in terms of helping families be with loved ones during usually pretty extreme medical situations.
"Our outcomes for our daughter would have been a very different situation for us if we did not have that."
She stayed at Ronald McDonald House last year when her year-old daughter, Mavis, had open-heart surgery at Auckland's Starship Hospital.
"It really alleviates that stress of where you would stay in another city."
She believed the relationship between the fast-food giant and the charity was misunderstood.
"While people think about McDonald's as this fast-food chain, the Ronald McDonald house is something way beyond that."
