This is a good explanation: http://www.physicia

This is a good explanation:

http://www.physicianspractice.com/practice-mo...tions-msos


The biggest thing, I know from experience having been a member of a MSO, as a physician we are restricted from benefiting financially in a lot of cases. For example, if I directly owned an offsite lab or MRI center, I could not refer my patient to that center for testing most of the time and never with Medicare/Medicaid patients. If in the unlikely circumstance I could get a certificate of need for one in my office that is ok to bill for the testing but no single doctor has the volume to afford the equipment. If I owned shares in a MSO that provided those services I could refer the patient and gain financially from the overall performance of the MSO minus my referrals thus negating the kickback rules for docs. The more volume the more the more profit. A single lab with multiple machines can test thousands and thousands of samples each month economically. At the end of the month you get investment income based on the number of shares you own after costs plus fees. MSO's tend to be operated by non docs as we are typically not great business minds. They can have non physician owners. This is how private individuals can profit from operating medical facilities. Most states do not allow a non licensed person to own a clinic so as not to interfere with medical decision making. They own management companies who control everything via a contract. They collect hard cost plus a fee for everything. Like being a member of Costco with a ROI.