How does a Management Services Organization work and is it legal?
Just like every Surgery and Imaging center has a management company owned by physicians, you may have ownership in our management companies. For decades, surgeons and physicians all use the same surgery and imaging centers, so why would they not use the same for other services?
Our model allows the physician investor to be a direct participant in the clinical and business process of lab services. Through participation in our management services company, the physician investor applies clinical expertise and knowledge to our business and operations background to achieve our mutual goals. As revenue is generated through management services contracts with local physical therapy centers, the physician investors share in the net profits. We are not owners in these facilities, nor billing providers, and do not share their liability more than a billing company does.
The following pages are a summary and exact description of our program, taken from our extensive offering documents. We invite you to evaluate our company for consideration of investment in a Management Services Organization – MSO.
Why work with us creating your MSO?
Our model creates a win-win-win for all involved: the physician or nurse practitioner who benefits from participation in the investment model, and the patient who benefits from value-added care and outcome.
Through our programs, you can create a revenue stream off of the services that you are currently offering in your business. You can also maximize your earning potential by adding some of our other ancillary services to your practice. Feel free to contact us today to learn more about this unique opportunity.
Benefits for you and your practice
- Minimum start up cost
- Recapture lost revenue
- No additional investment in staff or equipment required
- Deliver additional quality care
- Easy implementation with no disruption in normal day to day operations
- Proven results
- No inventory required
Physician Partners
We are pleased to offer ownership interest to qualified physician partners. We extend ownership opportunity to physicians because we believe physicians are the drivers of the healthcare system. For us it’s plain and simple: if our aim is to create an innovative interconnected service network, then the physician needs to be at the core. By partnering with the physician, we are declaring that they are our most valuable player.
Business Overview
The core of our business lies in our ability to deliver products and services to our clients that result in increased revenue and profits. We obtain service agreements with independent medical services providers, who, in turn, provide payment. For example, we have contracts with private pharmacies to provide practice management services (e.g. patient acquisition, retention, compliance, office protocols, billing support, etc), for which will be paid a fee. Since it is our desire to see the independent business succeed, we will seek out only those services who are preferred and/or recommended by the physicians and who have a known track record of providing highest quality care to patients. As the independent business succeeds, it will require more of our services, and, therefore, the fees will increase. As a greater volume of service agreements are in place, profits will escalate.
Business Structure
Management Services Organization MSOs are structured as an LLC, with 60% ownership by the managing partner, and 40% ownership by the physician partner(s), the maximum allowed by law. The physician investors make a small investment as required by law to secure their shares. Physician partners share in the monthly distribution of profits according to their ownership interest. It is important to note the Company itself does not have any ownership interest in any entity that provides healthcare services, nor does it submit claims to any third party payers for healthcare services.
Legal Matters
- Physician ownership in any business entity raises obvious concerns about the potential for ethical/legal noncompliance. There are specific statutes that have bearing on business arrangements such as ours. The statute most everybody is familiar with is the Stark Law, which provides direction on permissible physician investment and physician-owned facilities. The Law speaks to arrangements such as ours, and specifically states that physicians may have an ownership interest in a management company, as long as those that are in a position to make a referral do not hold more than 40% interest, and are not responsible for generating more than 40% of the revenue, and are not compensated on the basis of referrals to the business.
- Through top attorneys, we have successfully addressed each of these concerns in that: a) our physician partners hold only 40% interest, b) all revenue generated by the company is via management services agreements, c) our investors receive distributions on the basis of their ownership interest.
According to starklaw.org, the go-to website for everything Stark, a physician may participate in any healthcare management company without restriction, provided physicians in a position to make referrals do not own more than 40% of the management company, provide more than 40% of the patients, and are not compensated based their production. Our healthcare regulatory attorneys have turned this simple one-page requirement into a 114-page offering packet to assure perfect compliance.
Please click here to learn more about Stark Law.
Stark Law
According to starklaw.org, the go-to website for everything Stark, a physician may participate in any healthcare management company without restriction, provided physicians in a position to make referrals do not own more than 40% of the management company, provide more than 40% of the patients, and are not compensated based their production. Our healthcare regulatory attorneys have turned this simple one-page requirement into a 114-page offering packet to assure perfect compliance.