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.
