Functions of Management Service Organization (MSO)

Posted: November 26th, 2013

Functions of Management Service Organization (MSO)


With the varying and unique needs of physicians, there is need for MSOs. Management Service Organization (MSO) is an investment initiative by physicians. Functions of effective MSOs include provision of practice management and administration services to individual physicians. It also develops clinical guidelines and standards .It develops a common wage and salary schedule.MSOs help in achieving quality management over time. MSO development is important to enable the physicians develop adequate resources to add value to their practices.


MSOs acquaint physicians with managerial and administration knowhow. Since the MSO help physicians do bulk buying, they benefit from reduced prices of the items they buy in bulk. This benefit is passed to the physician .The low cost advantage may be used when dealing with their healthcare activities. Through MSOs, they are able to acquire buildings, equipments and supplies of their client physician and do lease back. In such case, this will enable the physician to own his or her day-to-day healthcare duties and no losing of their practicing office. Through that, physicians do not have the burden of doing other practices outside their field.

MSOs develop clinical guidelines and care standards thus meeting clinical integration. This has been eased by operating as a group practice without boundary. This has made it easy to have a share saving relationship with the third party payers. Before that, MSOs were pointed to have ill practices like in staffing and benefits associated with it.

MSO establishes a system of common wage and salary schedule. Through doing this, it also provides staff supervision training and performance appraisal. However, this may lead to loss of direct control of physician among the staff, but eventually leads to improved management. Through MSOs, healthcare management increases. This leads to innovative companies and practices. With varying and unique needs, MSOs enable physicians strive to fulfill those needs in a timely and cost effective way.

MSOs help achieve quality management over time. This makes it easier to access management tools and system oriented processes.MSOs enhances  physicians’ ability to retain a sense of professional autonomy and practice physicians have  increased access to resources like staff management and information technology. Healthcare financial managers should measure their MSO to see whether it delivering to their targets. These measures examines the business scope, physicians practice acquisition, management skills and organization culture.

MSO development is important to enable the physicians develop adequate resources to add value to their practices. There is need to create financial and strategic alignments with physicians. All these are accomplished through management services organization .While it can be challenging, as it pertains to cost constraints, different perceptions and expectations the, implementation come with many benefits.


With the integration of MSOs in the varying and unique world of physician’s needs, provision of practice management and administration service has been effected. Each physician is acquainted with the management and administrative services they need in their practice In addition, it has eased the development of clinical guidelines and standard. Common wage and salary scheduled has been done through MSOs.Also quality time in management is achieved .for quality management to be met, MSOs ensure that all the physicians are familiar the management services. All this meets the physician unique and varying needs.




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