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Management Service Organizations are an increasingly popular practice. Here’s what you need to know before you agree to become a ‘friendly’ physician.
The use of management service organizations (MSOs) to operate and control medical practices across the country is expanding (MSO Model). This approach is a popular method of allowing non-physicians and/or investors to manage medical practices in states where the corporate practice of medicine is otherwise prohibited.
Under the MSO Model, an MSO will sometimes work with existing medical practices; other times, in order to expand, the MSO must work with a physician to start a practice from scratch.
When starting a new practice, the MSO Model often relies on locating “friendly” physicians who are willing to own and work under the MSO. If you are approached to serve as a “friendly” physician, here are six issues to consider:
Most importantly, you should always ask yourself why you want be involved with the MSO Model. Make sure there is an upside in terms of your increased professional opportunities, compensation, or the right to invest and benefit from the MSO Model’s financial success. Serving as a “friendly” physician when there is no advantage, means that you are just being used - and the arrangement is not friendly at all.
Ericka L. Adler, JD, LLM has practiced in the area of regulatory and transactional healthcare law for more than 20 years. She represents physicians and other healthcare providers across the country in their day-to-day legal needs, including contract negotiations, sale transactions, and complex joint ventures. She also works with providers on a wide variety of compliance issues such as Stark Law, Anti-Kickback Statute and HIPAA. Ericka has been writing for Physicians Practice since 2011.