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Glossary Terms

What is a Management Services Organization (MSO)?

What is a Management Services Organization (MSO)?

Management services organizations are administrative and management organizations that provide these services to healthcare providers. An MSO offers different types of governance, structure, and function depending on the IPA or medical group they serve. Healthcare providers can outsource an MSO for one particular function or multiple services and processes according to their needs. An MSO maintains a successful relationship with regulators and other associated third-party contractors, which helps providers focus more on medical outcomes and practice medical expenses control. 

What Are the Common Services and Functions of MSOs?

MSOs typically handle administrative and management functions, including nonmedical tasks in a healthcare system. The standard services and functions they offer include: 

    Why Is a Management Services Organization Beneficial to the Healthcare System? 

    An MSO benefits the healthcare system by standardizing care management delivery across the enterprise, thereby improving quality and reducing costs. Necessary tasks, such as risk stratification, attribution, and care management delivery are made simpler with the involvement of an MSO. These services improve centralized performance and make way for consistent evaluation and course correction across the entire health system. 

    An MSO is most beneficial to healthcare systems that plan to expand their network and attract potential partners. Knowing that the administrative and management responsibilities are outsourced gives the physician more time to focus on quality clinical care.


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