Joseph Rugg's Health Law Blog

Management service organizations have been around for a while providing management to physician practices, ranging from billing and collection to complete turnkey operations. In this regard, they have always been important.

However, MSOs have become increasingly critical to help physicians navigate the unique problems and opportunities facing them in this era of healthcare reform — ACOs, practice acquisitions and consolidations, and reimbursement cuts. Physicians in solo or small practices cannot practice quality medicine, deal with compliance issues, handle employees, negotiate managed care contracts, control expenses, and maximize revenues. Maybe once they could, but no longer.

The goal of contracting with a quality MSO is to allow physicians to practice medicine again without being distracted by all the back office business details.

MSOs come in many shapes and sizes, and one size clearly does not fit all. The physician must decide what it is that he needs and wants. Does he want an MSO that will provide a limited range of services for a limited price or does he want something much more extensive and expensive? The physician should discuss the alternatives with his legal and financial advisors. They will need to assist him in selecting the prospective MSOs and doing due diligence on them.

There are many issues to consider. I will discuss those in subsequent posts.