Is a Management Services Organization (MSO) Right For Your Practice?

By Nick Hernandez, MBA, FACHE

Medically reviewed by Patricia Salber MD, MBA (@docweighsin)

Here is what you need to know before entering into a Management Services Organization (MSO) arrangement for your practice.

Consideration of partnering with an MSO should not be taken lightly. (Photo source: iStock)

Are you considering partnering with a Management Services Organization (MSO) instead of merging your practice with another or selling to a hospital? Recently more private practice physicians approach me about “selling” to private equity or “joining” an MSO.

There is often confusion about how these two are related and exactly what it means to join an MSO. The structures of MSOs vary greatly, as well as the management services they offer. Furthermore, the laws related to these entities vary by state. This may further complicate the design structure.

This article will attempt to give a high-level overview of two common structures of MSOs:

• One that takes ownership (partial or full) of a medical practice
• The other that provides business services without taking any ownership.

The acquisition

For starters, most MSOs are very particular about the practices they purchase. Aside from being specialty-specific, they…