MSO stands for Medical Services Organization or Management Services Organization. While many medical spa owners switch to an MSO for legal reasons, there are many financial and operational considerations that need to be put in place to maintain legal compliance and enable financial growth. Our discussion on developing your practice begins by explaining what a Managed Services Organization (MSO) is and what it can do. Usually, an MSO is used to run the administrative end of the medical spa, while the doctor runs the medical end.
An MSO is an independent entity that has experience in the back-end of a medical practice. MSOs do not participate in the medical decision process. Participation could mean that the medical spa was violating unauthorized medical decision laws or corporate practice of medical laws. However, if you are an entrepreneur who wants to be part of the medical aesthetic industry at the property level and live in a state where the corporate practice of the doctrine of medicine is observed, you may be able to establish an MSO.
As the name suggests, an MSO provides management services. The organization partners with a doctor for whom an independent company is created. The two entities then create a Management Services Agreement (MSA), which allows the non-physician-owned MSO to oversee various aspects of medspa's business. These may include branding, marketing, ownership of real estate or leasing, payroll, human resources, accounting and billing, all except actual management of medical services.
An MSO is the vehicle by which laymen can participate in a California medical spa. By forming a corporation or an LLC, the Medical Services Organization (which may be owned by non-medical professionals) may provide personnel to the California Medical Corporation and the Chief Medical Officer. Can lease office space, provide administrative staff (medical director still has sole responsibility for choosing all licensed personnel), provide equipment rental, provide information for advertising, marketing and branding without actually organizing or approving advertising, working with suppliers and provide administrative services such as billing and accounts payable management by persons without a license. For most MedSpa owners or aspiring MedSpa owners, the primary reason for considering a Management Services Organization (MSO) is legal considerations.
In most states, medical procedures must be performed by physicians or physician-owned organizations. Therefore, for a non-doctor to own or participate in a medical spa, an MSO must be set up. This allows clinical aspects of a medical spa to be owned and supervised by a physician, while non-clinical aspects can be performed by non-physicians (the MSO entity). However, beyond legal considerations, are there any benefits to setting up your organization as an MSO? In our opinion, the answer is a resounding yes.
Allowing non-doctors to participate in the medical spa industry attracts non-medical talents who might otherwise be unavailable for a medical spa. Configuring an MSO allows the ability to scale and find efficiencies in processes and costs. Finally, the creation of an MSO helps to promote investor interest, such as private equity. Fortunately, the MSO model allows anyone to achieve their goals of operating a medical spa.
Through an MSO, non-medical professionals can help doctors and other healthcare providers with both administrative and non-clinical aspects of medical practice. The goal of the doctrine is to provide patients with ethics-based care rather than for-profit care influenced by someone without medical training. Fortunately, the MSO model can give non-physicians an avenue to engage in medical practices by assigning all non-medical aspects of the practice to a separate entity, which may be wholly owned by a non-physician. A contract between the California Medical Corporation and the Medical Services Organization is then used to establish the terms of compensation for the Medical Services Organization's participation in the Medical Spa.
Unlike doctor's offices, which must be owned by a licensed physician in Texas, MSOs can be owned by anyone interested in investing in the burgeoning healthcare industry. MSOs offer non-medical healthcare professionals the opportunity to participate in healthcare companies that are usually reserved for licensed physicians, such as medical spas, intravenous hydration clinics, or other clinics that provide medical services. In addition, the creation of an independent company for the doctor helps prevent any liability issues incurred in the medspa from overflowing into any of the doctor's other medical activities. According to the California Medical Board, a doctor who acts as the medical director of a secularly-owned business is helping and inciting the practice of medicine without a license.
Thiersch, JD, is a Chicago-based healthcare attorney representing medspas, plastic surgeons and other aesthetic medicine professionals. However, since a licensed physician must own 51% or more of the medical corporation, the other shareholders formed by these professionals cannot own more than 49% of the medical corporation. We can analyze the history of industries such as medicine, veterinary medicine and dentistry to predict what will continue to happen in the medical spa space. First, the doctor must be in control of all medical decisions, including the hiring of medical personnel.
Compliance with the rules governing medical spas and the obligations of licensed professionals and the medical director is essential. If a doctor experienced in performing all procedures actually performs them, the medical spa is more likely to comply with California law. Addiction Treatment Centers Biotechnology% 26 Life Sciences Cannabis Companies Concierge Medical Internship Cosmetics Companies Dietary Supplement Companies Digital %26 Mobile Health Companies Health Centers Medical Groups, Medical Centers Medical Management (MSO), Medical Pastry Medicine Companies. Sue's designated healthcare attorney explains that The MSO can help with the many generic aspects of medical spa, aspects that most types of medical practice need.
In Texas, nurse practitioners, beauticians, and other non-doctors cannot own a medical spa, also known as a medi-spa or medical spa. . .