Praction Group » Unlocking Success: Inspiring MSO Case Studies Across Industries

By Jeff Plowman, Praction Group founder

Management Services Organizations (MSOs) have proven to be a game-changing solution for businesses seeking to optimize operations, reduce costs, and focus on their core competencies. While MSOs have traditionally been associated with the healthcare industry, their success has inspired adaptation across various sectors. In this article, we'll explore inspiring case studies of MSOs in healthcare, professional services, and other non-healthcare industries, showcasing their transformative potential.

Healthcare MSO Success Stories

CaduceusHealth and athenahealth: Driving Efficiency and Transparency

CaduceusHealth, a New Jersey-based MSO, partnered with athenahealth to provide practice management and administrative support to healthcare providers. By leveraging athenahealth's services, CaduceusHealth was able to:

Offer complete transparency into billing activity, claim holds, and financial performance metrics
Embed experts onsite to work closely with staff during implementation
Utilize athenahealth's Billing Rules Engine to proactively catch errors before claim submission

This partnership allowed healthcare providers to focus on delivering high-quality patient care while improving overall efficiency and compliance.

Englewood Health: Enhancing Collections and Transparency

Englewood Health, a CaduceusHealth customer, previously outsourced its revenue cycle management to a firm using custom-built software. While this saved time and staffing costs, Englewood lacked real-time visibility into its data. By partnering with CaduceusHealth and athenahealth, Englewood achieved:

Improved transparency, with complete access to billing activity and performance metrics
Stronger collections without adding staff, thanks to CaduceusHealth's embedded experts and athenahealth's Billing Rules Engine

This case study highlights how an MSO can help healthcare providers optimize their revenue cycle while maintaining transparency and control.

Professional Services MSO Triumphs

Legal Department Consulting: Positioning for Success

A major healthcare company engaged Major, Lindsey & Africa, a legal talent management consulting firm, to help evaluate and optimize its legal department. The MSO team:

Conducted a comprehensive fact-finding process, interviewing legal staff, business unit leaders, and functional group leaders
Reviewed company strategy documents, internal surveys, and time studies
Assessed the Contract Management System and developed a plan to enhance functionality and user acceptance
Provided individual assessments for each lawyer to identify strengths, development opportunities, and alignment with company values

The MSO made recommendations to adapt the legal department's organizational structure, technology, and talent to meet the evolving needs of the growing company. This case study demonstrates how an MSO can help professional services firms strategically position themselves for success.

Finance and Accounting Outsourcing: Enhancing Visibility and Decision-Making

RSM, a leading provider of audit, tax, and consulting services, has developed flexible finance and accounting outsourcing (FAO) strategies for middle-market companies across industries. By aligning people, processes, and technology, RSM has helped companies:

Strengthen back-office processes and increase operational efficiency
Enhance visibility and decision-making through proven FAO strategies
Improve financial performance and sustained success

RSM's success in delivering FAO solutions showcases how MSOs can transform financial operations for professional services firms and other businesses.

Other Non-Healthcare MSO Successes

Real Estate and Manufacturing: Streamlining Operations

In the real estate sector, property management firms like Greystar and FirstService Residential function similarly to MSOs, providing centralized services to property owners. By offering tenant management, maintenance coordination, financial reporting, and marketing services, these firms help real estate businesses streamline operations and drive efficiency.

Similarly, in manufacturing, third-party logistics (3PL) providers like DHL Supply Chain and XPO Logistics operate as MSOs, offering warehouse management, transportation coordination, and supply chain optimization. By outsourcing these non-core functions, manufacturers can improve efficiency and reduce costs.

Key Success Factors for MSOs Across Industries

Across these diverse industries, the success of MSO-like models can be attributed to several key factors:

Economies of Scale: Centralizing services enables cost-effective solutions for clients.
Specialized Expertise: MSOs provide access to specialized knowledge and skills that may be difficult or expensive for individual businesses to maintain in-house.
Focus on Core Competencies: Outsourcing non-core functions allows businesses to concentrate on their primary value-generating activities.
Technological Advantage: MSOs often invest in advanced technologies and systems that benefit all their clients.
Regulatory Compliance: In regulated industries, MSOs can help ensure compliance with complex legal and regulatory requirements.

The inspiring success stories of MSOs in healthcare, professional services, and beyond demonstrate the transformative potential of this business model. By centralizing non-core functions, leveraging economies of scale, and providing specialized expertise, MSOs enable organizations across industries to optimize operations, reduce costs, and focus on their core competencies. As businesses continue to navigate an increasingly complex and competitive landscape, the adaptability and proven benefits of the MSO model make it a compelling solution for driving success and unlocking value in diverse sectors.

Contact Praction Group to explore MSO opportunities that may be relevant to you!