Let's face it, the day-to-day demands of running a successful practice make it nearly impossible for physicians to treat patients and simultaneously devote the necessary attention to business operations.
As the non-medical burdens of private practice increase over time – billing, collections, human resources management, etc. – many physicians turn to management service organizations (MSOs) for administrative support. These arrangements allow MSOs to handle the business functions of a medical practice, while the physicians focus their energy on patient care.
How does a physician determine if a physician practice management arrangements with an MSO is right for his or her practice? Below is a list of five things that physicians should consider:
What is an MSO?
An MSO – sometimes referred to as a physician practice management company or an administrative services organization – generally refers to a business entity that provides non-clinical practice management services to a medical practice. Arrangements with MSOs typically involve the MSO performing most of the business and non-clinical functions of the medical practice, while the physicians remain in control of patient care and all clinical decision-making.
What type of services does an MSO perform?
The services offered by MSOs vary depending on the scope of the engagement by the physician practice but, generally, can include one or more of the following:
•Premises and/or equipment leasing, maintenance and repair.
•Provision of administrative personnel for the practice (e.g., office and clerical staff).
•Bookkeeping and accounting.
•Human resources management.
•Billing, claims submission and collections.
•Marketing and public relations.
•Technological and informational support systems.
•Assistance with managed care contracting.