Let’s start with a brief background on the traditional Management Service Organization (MSO)
A Common definition for an MSO is as follows: An MSO provides services to the medical and healthcare industries by managing administrative duties such as human resources, payroll, employee benefits, and compliance. MSOs are frequently used by physicians’ offices, hospitals, investors, and groups of affiliated medical offices. The overall goal of using an MSO is to allow medical providers to focus on care instead of business duties such as coding, managing office spaces, IT services, financial management, and securing supplies and medications.
Medical Practices are a popular profession to invest in because profit margins are high, but most MSOs are non-physician owned, corporate entities. They are most commonly financed and controlled by private equity investors.
Following the sale of the practice the physician will generally stay on and work in the practice. Often the physician can lose autonomy post practice sale and the decisions can be directly or indirectly impacted by the investors.
The Specialty Medical Partners Difference
The ‘difference’ in our model at SMP is doctor ownership. Our shareholders are doctors. Our partnership transaction is very similar to the traditional sale, but instead of the full practice value exchanged in cash, there is a cash/stock split, typically 60/40 but is adjusted for each Doctors needs. The partner physician becomes a shareholder in SMP. There is only one class of shares which carry the same rights and obligations for all partners.
Our shareholders agreement specifically call out the responsibilities of each partner and keep the clinical autonomy in the hands of the physician. This is an essential differentiator in our model, which preserves the patient-doctor relationship.
As Specialty Medical Partners increase partners practices, SMPs overall share value grows as each partner has the same share type they all benefit. Doctors can realize their gain in share value at any time through our internal trading market. Long story short, our partners ‘buy-in’, they don’t ‘cash out’ as with other MSO models.
Speciality Medical Partners has a place for Physicians at all stages of their career.
Our most common practice partner is a mid-career physician looking for support to alleviate their administrative burden and help them grow while maintaining high-quality care. The model was developed as an alternative approach to practice ownership in a changing world. The starting point had new or younger physicians in mind. Their pathway to partnership involves a purchase of shares in SMP equal to 30% of the value of their practice.
The practice ‘homes’ for our younger doctors are either existing practices requiring an additional doctor, or the practice of a retiring doctor who has partnered with SMP to facilitate their transition.
Why Speciality Medical Partners?
All SMP partner doctors have a growth mindset. As owners, they maintain leadership authority at a practice level, driving the performance of their practice and earning a variable salary dependent on their success. Additionally, doctors enjoy operational efficiencies and central supports that allow them to focus on quality care. Our partners are community-minded individuals who support the communities they practice in and contribute in a meaningful way to the enhancement of the practice and communities in which they practice.
Our vibrant partnership network is a North America wide group of like-minded physicians who share similar values and thrive in a collaborative culture.
Author: Michael Black, CEO. Specialty Medical Partners
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