The Power of Partnership:Doctors and Hospitals Benefit fromManagement Services Organizationsa report by Keith E. Chew, CMPE, Senior ConsultantMcKesson Practice Consulting Solutions, Revenue Management SolutionsAs the day-to-day operation of physician Because the MSO provides an ideal Since hospitals and health systemspractices and ancillary services becomes conduit for implementing an electronic generally have the financial wherewithalincreasingly complex and costly, health record (EHR), hospitals benefit to capitalize development of amanagement services organizations from MSO development by more communitywide EHR, many successful(MSO) are emerging as ideal vehicles effectively aligning with the local MSOs are anchored by a hospital.for addressing the needs of physician provider community and improving However, physician groups also aregroups, other service providers and continuity and quality of care. establishing MSOs. Regardless of whetherhospitals alike. the entity is organized by physicians The EHR Platform or a hospital, MSO participation canMSOs are partnerships that offer a range The emergence of the EHR has been include other community healthof support services to independent a primary catalyst behind the current organizations, such as imaging centers,physician and ancillary service provider interest in MSOs. Unlike stand-alone, physical therapy centers, rehab facilities,groups. MSOs frequently include a hospital-based EHRs developed in ambulatory surgery centers and more.hospital ownership interest and are isolation, EHRs implemented within Ownership typically will reflect the capitaldesigned to assist providers with basic the framework of the MSO are more contributions of the members.business functions like purchasing, likely to generate the critical mass ofequipment leasing, contracting and participation necessary to succeedhuman resources. They can also deliver because providers will be attracted tomission-critical services such as billing both the MSO-based EHR’s connectivityand regulatory compliance. and its support services.