Management Services Organizations (MSOs)
Saphier and Heller's representation of MSOs has included the preparation of agreements relating to the furnishing of management services to hospitals, medical groups, individual physicians, and others. Preparation of such agreements often requires consideration of regulatory issues such as the corporate practice of medicine, self-referral, and anti-fraud and abuse laws.
The compensation payable under management agreements in the health care field is typically determined on the basis of a percentage of collections, and percentage agreements often raise serious health care regulatory issues.
Also, if marketing services are included in the management agreement, additional regulatory issues arise because of prohibitions against payment for referrals, generation of business, or recommending or arranging for the purchase of items or services for which payment may be made under Medicare or Medicaid.
Additional regulatory issues may arise when physicians have ownership interests in the MSO. In these cases, the various type of regulatory issues mentioned in this website often are applicable.