Special offer 

Jumpstart your hiring with a $75 credit to sponsor your first job.*

Sponsored Jobs are 2.6x times faster to first hire than non-sponsored jobs.**
  • Attract the talent you’re looking for
  • Get more visibility in search results
  • Appear to more candidates longer

What Is a Management Services Organization (MSO)?

What is an MSO and is it right for your medical practice? A management services organization is an outside entity that can help you with the nonmedical parts of running your practice. Learn more about how they work and what they can do to decide whether you should use one for your medical facility.

Post a Job

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.

FAQs about MSOs

How do you choose an MSO?

Start by determining which services you want them to handle, and ensure the MSO you’re considering offers all those tasks. Check how long the MSO has been around and what type of experience they have. Looking at reviews and asking other medical practices which MSO they use can help you narrow down the options.

Can you choose what the MSO handles?

MSOs typically offer a wide range of services, but you don’t have to hand over all of those duties to the company. Many MSOs offer package deals with multiple services for one price. They typically also offer individual options, so you can choose exactly what they do and what you handle internally.

Can you use more than one MSO?

You can use more than one MSO at a time. You might choose one MSO to manage your finances and another to deal with your practice’s technology.

Post a Job

Ready to get started?

Post a Job

*Indeed provides this information as a courtesy to users of this site. Please note that we are not your recruiting or legal advisor, we are not responsible for the content of your job descriptions, and none of the information provided herein guarantees performance.

Editorial Guidelines