The MSO Lets Non-Physician Businesspeople Profit from Medical Ventures
I’m going to talk about several scenarios where the MSO model is incredibly useful. And I’m not going to go deep, deep into the law. We have a ton of content on our website here at mso-attorney and we also have additional content on our YouTube channel and a separate website for Cohen Healthcare Law Group.
So, if you want content – we have it. But what we would really like to encourage you to do, is to consult with our attorneys because all the lessons come to life when you grapple with what’s going on in your business and you get your advice customized.
So, for today, let’s take our first scenario. Let’s say you have a physician who’s opening a medical practice or starting a new practice, and their spouse run the office and wants to have a cut from the venture.
Now, because of fee-splitting, the spouse can’t suck monies willy-nilly out of the medical practice. But there are some strategic options.
So, one option is the spouse could be employed by, or contracted with the medical venture. Let’s say the husband is the physician, and the wife is the office manager. Let’s say her name is Sally. And Sally draws a salary from the medical practice or from the professional medical corporation.
That’s fine. But let’s say she does a lot more. let’s say she arranges for the billers, and she arranges for the accountants, and she’s doing all sorts of stuff, she manages a staff, she has to buy equipment, she got to lease space.
The MSO model would create a vehicle where she could actually charge for these additional services, it’s actually the MSO that charges. So, in this model, the MSO charges the medical practice for MSO services and the wife could own or co-own with the doctor husband the MSO. So, this gives an additional stream of revenue to her or to the couple besides her salary.
The MSO is not the be-all-and-end-all of existence, but you can see it’s a vehicle, it’s a model. It’s a way to channel additional profits beyond salary as an employee of the medical practice.