The Importance Of A Management Service Organization Essay

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A management service organization is an entity that typically provides non-clinical services to providers (Khatri, 2015). An MSO can be an arrangement between a group of physicians; a joint venture between a hospital and physicians or can exist even between non-healthcare entities and providers. The existing entities remain intact; however, certain functions are transferred to a new and separate organization (management service organization). The types of services that can be transferred are numerous, examples include, billing and collections, credentialing, inventory management and risk management. The nature of an MSO would not generate increased access to patients. However, it would certainly allow the practice to retain a high level of autonomy from a clinical perspective since each original entity remains. The main advantage of a management services agreement is the economies of scale that can be produced (Latham, 2016). Specifically, the MSO can provide lower pricing on supplies and services, such as medical supplies and employee health insurance. Some MSO’s even provide access to an EHR system (Madden, Understanding Management Services, 2016). However, depending on the number of services outsourced to the MSO, the physician’s ability to influence administrative decisions would be diminished. Additionally, because each organization remains completely independent from a clinical, operational and legal perspective, this would not provide any leverage regarding
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