Management Service Organizations (MSO) are entities that can help you with all the parts of running your company. ONEALCPA can teach you about how they work and what they can do to decide whether your client should use one for their business.
MSOs were popularized in the healthcare industry in the 1990s with the advent of managed care. They provide a vehicle for physicians to merge their practice and centralize billing, collection, and utilization functions for the merged practices.
From there they evolved into employee leasing and professional employer organization to central benefit administration. They can help with your business infrastructure, technology, and related components that are essential to running your business smoothly.
Services Provided
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
- Technology & IT
- Office space and equipment leasing management.
Benefits of using an MSO When considering an MSO, look at the benefits you get from using one, including:
Time savings: By handing off administrative tasks, your staff can focus on providing your clients with the best possible service/products.
Access to experience: Even if you’ve been handling administrative tasks successfully, your expertise is in your business. An MSO gives you access to experts in administration, which can improve your processes.
Money savings: MSOs are often large corporations that have better buying power than a small company, which can save you money.
Maintain independence: Small companies often struggle to maintain their independence. An MSO can help you avoid mergers or acquisitions to retain control and ownership over your company.
The BEST practices for using an MSO Is to get the most out of your MSO, follow these 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 all activities that you control.
How do you choose an MSO? Start by determining which services you want the MSO 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.
You can choose what the MSO handles MSOs typically offer a wide range of services, but you don’t have to hand over all 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.
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 company’s technology.
