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Dental management service organizations. Lessons from medicine.

BACKGROUND: While management service organizations are new to dentistry, they have existed in medicine for many years. The author examined why they developed and what happened to three of them during 1998 to provide dentistry with insights into the future of dental management service organizations, or DMSOs. METHODS: The author identified and examined the three largest physician practice management firms, or PPMs, as of early 1998. He monitored their stock prices and fiscal changes through 1998. He also tracked all publicly traded DMSOs for growth and evaluated their stock price changes. RESULTS AND CONCLUSIONS: Economic pressures to control the cost of health care led to the development of organizational structures designed to increase the cost effectiveness of, and to control more variables associated with, health care delivery. The lure of vertical integration of health care delivery with the resultant control of multiple variables-including primary and specialty care, pharmaceuticals and hospitals-promoted the development of many PPMs and DMSOs, although many variables differ for dentistry. PRACTICE IMPLICATIONS: The realities associated with the loss of control in the corporate model, the lack of sufficient operating margins to support investor expectations and plummeting stock prices call into question the wisdom of universally embracing similar models for dentistry.

Contract Services↗

Management service organizations: effective strategy to assume and manage full risk agreements?

A management services organization (MSO) has emerged as one structure to manage professional and hospital risk agreements. Health plans and direct payers are transferring traditional functions to medical groups and health systems under these agreements. How does a hospital and affiliated medical group develop a strategy to assume, manage, and mutually benefit from these agreements? When do market forces dictate whether an MSO is the most appropriate organizational model to utilize? The development of an MSO can offer an effective organizational strategy to capture capitated contracts and assume responsibility for population-based medical services. This article explores the features of such an organization, areas for potential collaboration between the medical group and hospital, as well as the impact on patient care.

Capitation Fee↗

Management services organizations.

This chapter defines a management services organization (MSO), and discusses the goals and objectives of hospitals and physicians in creating an MSO and the advantages and disadvantages of an MSO. It stresses the necessity of developing a business plan in the formation of an MSO and discusses organizational forms and MSO activities, such as managed care contracting, billing, information systems, utilization management and review, the provision of supplies, medical office space, equipment, staff, and turnkey arrangements. In addition, it discusses the structuring of MSO fees and a number of organizational structures for MSOs and legal issues affecting them.

Contract Services↗

CHA survey of central management services organizations.

Catholic multihospital systems with central management services organizations (CMSOs) constitute a significant percentage of total Catholic hospitals and acute care beds. Results of a recent CHA survey provide a base for future analyses of the CMSO and reveal the potential for further system development.

Catholicism↗

Information systems for the management services organization.

The growth of the management of services organization has been accompanied by the need for better information technology systems to track both patient and physician utilization. The author describes some possible benefits of customizing an information system to meet the needs of these specialized organizations.

Ambulatory Care Information Systems↗

Management services organization for group practices.

This article analyzes why management service organizations (MSOs) have become the major interface between group practices and managed care organizations as well as their advantages and disadvantages. It provides this information in the context of The University of Texas Southwestern Medical Center's development and operation of an MSO in the Dallas/Fort Worth market.

Evaluation Studies as Topic↗

Management services organizations: providing economies of scale.

Effective information management and other shared costs can reduce agencies' operating expenses as well as make new products available while providing opportunities to gain a competitive advantage. By taking a close look at ways of controlling documentation, such as the use of a management services organization for information system/computer-based management, agencies can prepare for the challenges of the next century.

Contract Services↗

MIS priorities for MSO's (management services organization) & clinics without walls.

Organized and efficient systems that are responsive to the needs of the medical group, hospital and management services organization are at the heart of successful integrated healthcare systems. Unfortunately, selecting the right systems solution can be a time-consuming and difficult process, at best. The problems are many. First, not all management services organizations look alike. Some are limited in scope and function. Others offer an expansive menu of services to the participating groups and physicians. Second, the level of sophistication of clinic or MSO personnel evaluating systems varies. Often, hospital systems personnel with little experience in the practice management arena are assigned the job of evaluating practice systems. Third, the budget for a data processing system may be limited. The process of forming an MSO and organizing a group without walls may be very expensive. Unless adequate budgeting is done in advance, only limited funds may be left for investment in systems. Lastly, identifying viable systems which are available can be an arduous undertaking. Literally, hundreds of possible systems are available. Unfortunately, few sources offer comprehensive information on each system suitable for proper evaluation. This has led many organizations to strategically design and develop their own physician network solutions and options using such applications as 4th generation data base language. According to Mick Bassell of Partners in HealthCare, a systems consulting group in San Rafael, CA., "a request for proposal process is usually the best way to identify systems that meet the group's needs, weaknesses and strengths. This should be done before vendors are asked to supply information about various computer systems. Developing a good RFP is a building process for both the MSO and group which will help them to jointly identify, organize and prioritize system requirements."

Ambulatory Care Information Systems↗

How nonprofit human service organizations manage their funding sources: key findings and policy implications.

Major findings and policy implications on how nonprofit social service organizations manage their funding relations are summarized. Data from in-depth case studies of six medium-sized social service organizations with distinctive funding profiles yielded findings on the major contingencies associated with controlling fees, the volatility of donations, and the driving force of public funding relationships for funders (public and private), nonprofit managers, and the role of nonprofit organizations.

Data Collection↗

Special Medicare reimbursement and fraud and abuse considerations for management services organizations, medical foundations, and integrated delivery systems.

This chapter discusses certain Medicare reimbursement and fraud and abuse considerations for management services organizations (MSOs), medical foundations, and integrated delivery systems. It stresses the necessity of a business plan, the sources of capitalization that might be used in creating an integrated delivery system, and their effect on Medicare reimbursement. It also discusses related party principles and considerations and the Medicare "incident to" regulations. Furthermore, it discusses the application of certain Medicare safe harbor regulations on MSOs' structures and services, and those of medical foundations and integrated delivery systems.

Capital Financing↗

Miscellaneous legal issues affecting integrated delivery systems, foundations, and management services organizations.

This chapter addresses some of those legal issues that uniquely affect the formation or operations of an integrated delivery system (IDS), a foundation, or a management services organization (MSO), but which are not discussed in any other chapters. This chapter gives special insight and guidance on issues such as licensing, credentialing and peer review, employee benefit plans, prohibitions against physician self-referrals, and the rules on disclosure of ownership and control.

Conflict of Interest↗

The antitrust risks of management services organizations, medical foundations, and integrated delivery systems.

This chapter focuses on the antitrust implications of forming a fully integrated delivery system. The danger lies in a challenge by the federal government or private parties, if the proposed system threatens the development of competing systems or excludes individuals or entities. By explaining the risks facing less integrated arrangements involving medical foundations and management services organizations, why forming an integrated system may resolve some of those risks, and the advantages and disadvantages of other options, this chapter also points out one of the primary benefits of forming an integrated system: reducing the antitrust risks. Finally, general suggestions are posed to minimize the antitrust risks when planning and developing any collaborative effort among providers.

Antitrust Laws↗