What is an MSO?
What is an MSO? It’s a business organization that takes on the administrative duties, such as benefits administration, for your medical practice. They don’t deal with any medical-related tasks, but they can help with your business infrastructure, technology and related components that are essential to running your business smoothly.
MSO structures
You can choose one of two MSO structures. In the first, you hire the MSO to do specific tasks for you. You’re essentially outsourcing those tasks and retaining full ownership over your practice. Based on your needs, you choose which services they handle.
In the other structure, the MSO buys the assets of your business, taking partial or full ownership over it. You then become their employee, and they handle all aspects of running the practice. If you lose all ownership in the deal, you might be subject to the MSO’s decisions on your hours, vacation time, benefits and other details, just like any employee.
Services an MSO offers
The specific tasks the MSO handles can vary based on your needs. Some things they can handle include:
- Human resources
- Payroll services
- Benefits
- Financial management
- Education and training programs
- Billing and collections
- Compliance
- Risk management
- Contract management
- Patient care coordination
- Technology and IT services
- Office space and equipment leasing management
Benefits of using an MSO
When considering an MSO in healthcare, take a look at the benefits you get from using one, including:
- Time savings: By handing off administrative tasks, your staff can focus on providing the best possible patient care.
- Access to experience: Even if you’ve been handling the administrative tasks successfully, your expertise is in medicine. An MSO gives you access to experts in administration, which can improve your processes.
- Improved patient care: The goal of working with an MSO is to improve patient care. This happens by letting your staff physicians focus more on the clinical side. The MSO can also suggest ways to streamline your practice and offer additional options for patients.
- Money savings: MSOs are often large corporations that have better buying power than a small practice, which can save you money.
- Maintain independence: Small medical practices often struggle to maintain their independence. An MSO can help you avoid mergers or acquisitions, so you can retain control and ownership over your practice.
Best practices for using an MSO
To get the most out of your MSO, follow these best practices:
- Read the contract: Review the agreement fully, so you know what you’re agreeing to. The contract should specify the services the MSO will provide and all terms of the arrangement.
- Know your exit options: Find out how you can exit the MSO arrangement if you decide you want out.
- Set boundaries: Ensure you and the MSO agree on what constitutes medical or clinical activities, which you should retain control of.
