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Management Service Organization (MSO)

What is a management service organization (MSO)?

A management service organization (MSO) is an administrative and management entity that provides the non-medical work required to operate a medical practice. An MSO may be owned by hospitals, non-healthcare provider investors, physician groups, payors, or joint ventures between hospitals and physicians.

Some of the tasks with which an MSO can assist a healthcare practice include:

There are two types of MSOs:

  • MSOs that buy the tangible assets of practices, manage them directly, and own the supplies, equipment, and office space that is leased to the physicians
  • MSOs that only provide business services to practices, allowing the practice to remain independent of the MSO

Why are MSOs important in healthcare?

MSOs benefit healthcare practices by providing management of various administrative tasks, allowing the practice employees to focus on delivering patient care. Additionally, MSOs ensure practices receive the lowest pricing on services and supplies, saving the practice money.

MSOs are especially helpful for small or medium-sized healthcare facilities, as they help these smaller facilities efficiently manage their administrative services, reducing costs and labor requirements. By outsourcing this non-medical work to MSOs, the facility can focus on supporting its patients and improving health outcomes.