In this transcript from a video of Andy Gale from Gale & Vallance, a law firm based in Orange County, California, he provides a clear and informative overview for healthcare professionals looking to start an MSO healthcare business in California. He explains what an MSO (Management Services Organization) is, its benefits, legal implications, and ownership structures specific to California’s healthcare landscape.
To learn more about how to start an MSO healthcare business in California and avoid compliance pitfalls, check out our detailed article on legal structures and regulatory requirements for MSOs in the state.
This video is meant for educational purposes and does not constitute legal advice. We highly recommend consulting with a qualified attorney to address your specific situation before forming or operating an MSO.
What Is an MSO? (00:00:00 – 00:00:40)
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Hey I’ve been hearing a lot about MSOs and healthcare in California lately. Do you know what MSOs…
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…are? Management Services Organizations or MSOs are entities that provide services, including non-clinical and operational support, to healthcare providers like physicians and medical groups. They help streamline operations and improve efficiency.
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However, it’s important to note that the provision of medical services must remain the sole province of the medical organization. The MSO may not provide any professional services.
What Are the Benefits of MSOs? (00:00:43 – 00:01:15)
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MSOs offer several benefits. They bring administrative efficiency by handling tasks like billing, claims processing, and revenue cycle management.
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Providers can save costs by leveraging economies of scale and expertise from the MSO.
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Plus, MSOs can negotiate contracts with payers and manage provider networks, allowing providers to focus more on patient care.
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However, it’s important to note that MSOs must be carefully structured to avoid regulatory issues.
Legal Considerations When Starting an MSO (00:01:15 – 00:02:10)
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What are the legal implications for MSOs in the healthcare industry?
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There are several legal considerations. MSOs must navigate the corporate practice of medicine doctrine, anti-kickback laws, and fraud and abuse laws to ensure compliance.
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They must also handle patient data under privacy and data security regulations like HIPAA.
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And of course, MSOs should comply with licensing requirements and adhere to contractual and regulatory compliance in the healthcare business.
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It’s crucial to ensure compliance, especially when it comes to these prohibited practices.
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The corporate practice of medicine (CPOM) prohibits non-licensees from exercising control over the practice of medicine.
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Regulatory issues can arise when it comes to the corporate practice of medicine, fee splitting, and the Stark Law, which can result in serious consequences if violated.
Who Can Own an MSO in California? (00:02:12 – 00:02:44)
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Who can own an MSO in healthcare in California?
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Different entities or individuals can own an MSO in California. MSOs can be structured in a variety of ways depending on the goals and needs of your practice.
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They can include the following: physician-owned MSO, non-physician-owned MSO, and hybrid MSO (owned by both physician and non-physician).
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Hospitals or larger healthcare systems may also own MSOs to provide centralized administrative support to their affiliated physicians.
Final Thoughts & Legal Assistance (00:02:47 – 00:03:20)
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Lots of people like you wonder: what is an MSO in healthcare in California?
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Although this video covered some of the legal aspects, you may feel overwhelmed by the laws and regulations you must follow.
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Incorporation Attorney provides legal assistance to correctly form an MSO in California.
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We can give you the assistance that you need to make sure you do not miss the important details.
Conclusion: Start an MSO Healthcare Business California
If you’re considering starting an MSO healthcare business in California, it’s essential to understand both the benefits and legal responsibilities that come with it. From structuring the MSO correctly to staying compliant with complex healthcare regulations, the process can be daunting without expert guidance. This video from Andy Gale at Gale & Vallance gives you a strong foundation, but for tailored legal advice, always consult with a California healthcare attorney. Don’t risk costly mistakes—get the right help before you launch your MSO.
