• A Warning to Physician Practice 'Managers'
  • June 15, 2017 | Author: Francis J. Serbaroli
  • Law Firm: Greenberg Traurig, LLP - New York Office
  • One of the more interesting developments in health care in recent years has been the proliferation of management service organizations (MSOs). These busi- nesses offer private medical prac- tices the opportunity to outsource most or even all of their back-office operations, e.g., reception, medical records, medical equipment, billing and collection, janitorial services, non-professional employees, and so on. Some MSOs go further and offer turn-key offi space, loans to capi- talize a growing practice, and other items and services. The appeal of this outsourcing option is that it can reduce the practice’s overhead while also freeing the physicians to spend more time providing medical services to their patients, thereby increasing their productivity and revenues. Because of their profi margins, MSOs have attracted considerable private equity interest and investments.