How can an MSO reduce risk for a San Diego medical practice? What are some of the risks associated with a Management Service Organization and how can the Watkins Firm help you to increase profitability while reducing risk and increasing the quality of your patient’s experience?
One of the hottest topics over the past few years in the business of healthcare has been the Management Service Organization or MSO. The basic concept of an MSO is it provides additional opportunities to increase retained profits by structuring an entity or entities to manage various aspects of the business of delivering healthcare in San Diego and Southern California. Increasing the quality of facilities and how they are managed as well as automation, Electronic Records Management (ERM), back-end services such as billing and accounting increase patient satisfaction and the satisfaction associated with each patient visit. However, these arrangements must be precisely structured and monitored to avoid legal issues for majority owners who must be licensed California healthcare professionals.
How can an MSO reduce risk for a San Diego medical practice or healthcare business? The corporate veil of an MSO provides extensive additional protections for licensed medical practitioners. However, there are inherent risks associated with the MSO which must be considered and carefully managed. One of these is the Federal Anti-Kickback Statute which applies to any individual or entity receiving payments through federal programs such as Medicare. California has established “safe harbors” which must be followed in order to structure legal transactions while protecting against civil and/or criminal liabilities.
The structure of your MSO must also give consideration to strict laws against the corporate practice of medicine in California. It is vitally important to structure the entities themselves as well as any potential interactions between the MSO and the delivery of healthcare to ensure compliance with all federal, state and local laws and regulations.
Can an MSO reduce risk for a San Diego medical practice or healthcare business while increasing profitability and patient satisfaction? Absolutely, but there are significant legal details which must be carefully managed and structured to protect the license of majority stakeholders while reducing exposures to civil or criminal liabilities.
We invite you to review the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
