A management services organization (MSO) gives an independent practice access to the infrastructure of a larger group while the practice stays physician-owned. It is one of the most common structures for physician practices working with outside capital or management partners.
How the structure works
The practice, often a professional corporation (PC) owned by licensed physicians, provides clinical care. The MSO is a separate company that provides nonclinical services to the practice under a management services agreement. Physicians keep control of clinical decisions; the MSO supports the business side.
In many states, laws on the corporate practice of medicine limit who can own a medical practice or control clinical decisions. The MSO model is designed with those rules in mind. Practices should always obtain their own legal advice for their state.
What an MSO typically handles
- Revenue cycle support, payer contracting and denial management
- Front desk, patient access and phone operations
- Technology, data and reporting
- Purchasing, facilities and equipment
- Human resources, recruiting and payroll
- Compliance support and growth planning
What physicians keep
- Ownership of the clinical entity
- Medical decision-making and standards of care
- Their relationships with patients and referring providers
When an MSO makes sense
An MSO is worth considering when administrative work is crowding out patient care, when growth requires systems the practice does not have, or when physicians want capital and support without selling clinical control.
KVLR Capital’s MSO starts with a complimentary revenue review to identify revenue your practice is not capturing today.