The Management Services Organization (MSO) Model is a popular legal structure for healthcare businesses. Here’s what you need to know to decide if it’s the right fit for your venture.
What Is an MSO?
An MSO is a business entity that provides non-clinical services to a healthcare practice. The MSO manages all administrative and operational functions, such as:
- Billing and collections.
- Marketing and patient acquisition.
- Staffing and HR.
- Facility management.
Who Uses the MSO Model?
Healthcare ventures like medical spas, IV hydration clinics, telemedicine platforms, and chiropractic offices often use this model. It allows non-clinicians to invest in and run healthcare businesses while complying with Corporate Practice of Medicine (CPOM) laws.
How Does It Work?
Under the MSO Model:
- The licensed clinician or medical practice handles all clinical aspects of patient care.
- The MSO operates the business side under a services agreement, receiving a fee for its services.
- The MSO may lease equipment, hire staff, or manage operations while ensuring compliance with laws like HIPAA and anti-kickback statutes.
Why Choose the MSO Model?
- Flexibility: Anyone can own an MSO, including non-licensed entrepreneurs.
- Compliance: The separation of clinical and administrative roles helps avoid CPOM violations.
- Scalability: The MSO model makes it easier to expand, sell, or restructure the business.
By leveraging the MSO Model, you can create a compliant, efficient, and scalable structure for your healthcare business.
Have Questions About Your Healthcare Business? Let’s Talk!
Understanding the legal and regulatory aspects of starting or growing a healthcare business can be overwhelming, but we’re here to help. Book a free consultation call with our expert attorney today! Whether you’re seeking clarification on the topics discussed in this post or need tailored legal advice, we’ll provide actionable insights to move your business forward confidently.
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