What is a Management Services Organization?

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What is a Management Services
Organization (MSO) and How it Helps

Private practices are at the heart of the healthcare industry. These small, community-based clinics provide essential medical care to millions of patients every day. And if they went away, patients would be missing out on the personal touch that these local doctors are able to provide.

Often, these private clinics are run by dedicated physicians who have made it their life’s work to save lives and improve the health of each patient, personally.

But when it comes to running the actual business end of things, private practices have an uphill battle. This struggle begins with complex regulations. Add to that the fact that administrative duties of staff and financial management operations eat up nearly a third of the budget. 

With many factors working against the survival of these essential small clinics, many doctors running their own practice may feel like they’re drowning. But it’s these smaller clinics that are the backbone of the healthcare industry—providing patients

with personalized, patient-centered care that is impossible to replicate in the large corporate healthcare systems that seem to be taking over.

The dilemma that doctors in private practice face is that administrative burdens take their toll, leading to financial struggles and even burnout. Luckily, there is a real solution to the problem. MSOs can target the problem head-on by streamlining processes and reducing both workload and expenses for private practices.

What is an MSO?

A Management Services Organization (MSO) is a company that provides administrative support to healthcare providers, including private medical practices. 

It’s a way to tackle the burden of secretarial duties that are inherent to running a private practice. By outsourcing, clinicians can reduce the workload in the office, allowing providers more time to focus their energy on what they do best—direct patient care. Specific tasks that an MSO can handle include: 

● Billing and Collections: MSOs can handle the complex and time-consuming process of billing and collections, ensuring that practices receive timely payment. 

● Credentialing and Contracting: MSOs can help practices become credentialed with insurance providers and negotiate contracts, a significant burden for smaller clinics. 

● Human Resources Management: Provide staffing support for administrative personnel such as front desk staff or medical assistance without requiring an entire HR department. 

● Regulatory Compliance Support: MSOs can help practices navigate complex regulations and ensure they’re in compliance with all necessary state and federal laws. ● Operational Efficiency: MSOs can streamline administrative processes, provide training and support to staff members, and improve the overall customer experience. 

According to recent research, practices that partner with an MSO see an average of 17% reduction in operating costs. Reducing operating costs is critical for small practices that are struggling to overcome financial burdens and stay afloat. In addition to cost savings, partnering with an MSO can provide small clinics with access to new technologies and insider expertise.

Is it Difficult to Implement an MSO?

While the process of implementing an MSO can be involved, it doesn’t have to be difficult. The MSO typically handles most of the heavy lifting, including the technical aspects of integrating their services, as well as training staff members.

 

The key to successfully implementing an MSO is to select the right MSO for the clinic’s needs and ensure that there is clear communication throughout the process. With the support and guidance of the right provider, implementing an MSO can be a smooth transition that improves operations and patient care simultaneously.

 

To get started:

 

1. Conduct an in-house needs assessment to determine what tasks you need help with.

2. Then, evaluate MSO options based on services, costs, and compatibility.

3. Next, negotiate the contract terms, including services provided and duration.

4. Finally, integrate your MSO service and train staff members on how to use the new

system.

 

With careful planning and a willingness to embrace change, clinics of any size can successfully partner with an MSO provider to improve their administrative and financial operations. Many clinics find that the long-term savings outweigh the initial hurdle of integrating a new system.

What Types of Clinics Should Use an MSO?

There’s no one-size-fits-all approach to incorporating an MSO into clinical settings. Each clinic aces its own unique burdens, which affect both practitioners and the overall patient experience.

 

Choosing to outsource with an MSO requires a thoughtful analysis of each practice’s

administrative needs, financial resources, and future goals. For example, General Practices may benefit from an MSO’s support in billing and collections or credentialing and contracting. In contrast, a sports rehab facility may need support finding

qualified staff or improving operational efficiency.

 

The trick is to identify areas where there are significant amounts of time spent handling

administrative tasks that take away from patient care. If a clinic spends too much time handling tedious duties unrelated to patient-centered care, then an MSO partnership can drastically reduce or even eliminate that burden completely.

 

To Sum it All Up 

 

In a corporate world where administrative burdens take a hefty toll on private medical practices, hiring an MSO can be the solution that eases that burden by improving operational efficiency so that physicians can focus on patient care. 

 

DLH Management Services Organization is deeply committed to helping private practices succeed in the healthcare industry. DLH MSO provides a range of administrative and management support services that save you time and money, while maintaining a competitive edge. 

 

At the end of the day, the goal is to provide the best possible care to patients. By partnering with an MSO, private medical practices can focus on what they do best—improving the health and well-being of patients in their own community.

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