What Is An MSO?

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MSO stands for Management Services Organization

There are (2) types of healthcare MSO organizations:

  • Model #1 will acquire the assets of the practice, then lease it all back to the physician. This MSO model works well for small private practices who are under a lot of stress and feel that running the business is affecting the quality of care they’re able to provide to patients. When an MSO purchases the assets of your practice, including the physical space, the equipment, and all supplies, you can focus on your patients and leave all of the management to someone else. The MSO agreement guarantees that you’ll continue to practice in the same office, with the same staff and the same resources, but you won’t have to worry about any administrative tasks. This is the model that many larger healthcare organizations and private equity firms have utilized for acquisitions of smaller practices.
  • Model #2 provides business services and guidance to medical practices, enabling them to remain autonomous. MD management operates under this MSO model, providing instrumental support to private practices while enabling them to remain fully in control of their own practice. While traditional MSOs work with a one-size-fits-all model, our services can be tailored to match your unique needs and focuses on the areas where your practice could use the most help. We believe one size doesn’t fit all practices, and you should be able to choose which of our areas of support you’d like to implement in order to best accommodate your needs.

Our MSO is built on the notion that our Partners should oversee the areas of their practice that works with their strengths and outsource their weaknesses to MD management to reach their optimum level of success and scalability. The primary role of an MSO is to alleviate the day-to-day pressures independent providers face, but it also seeks to capitalize on economies of scale for these private practices to reduce costs.

Physicians retain 100% ownership of their practices and maintain independent discretion in regard to their day-to-day clinical operations. Physician control is important to remain compliant with the Corporate Practice of Medicine, nobody except for a practicing physician can make decisions with respect to the delivery of care.

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