MSO/BSO Key Steps to Formation, Operations, and Transactions
- February 16, 2022
Management services organizations (MSOs) and business services organizations (BSOs) should be treated like any other business venture, especially those that entail management and administrative services to both existing/sister providers and newly encountered ones.
Their formation, operations, and overall business and strategic plans should focus on the proper array and delivery of defined services. At first, the typical MSO may be little more than a formally organized extension of its medical practice or ancillary entity. The needs of an MSO include appropriate services and products development, essential management procurement, proper infrastructure, and adequate start-up and ongoing capital. If these items are not included or properly developed, the MSO/BSO will experience no value-add and likely result in its failure.
We added an appendix to our recent white paper, The Revival of Management Services Organizations as a Growth Strategy, to summarize the keys to MSO/BSO formation, operations, and potential transactional alternatives and processes.