What is Management Services Organization Agreement Drafting?
A management services organization agreement (MSO) is a legal contract signed by a medical practice and a separate entity who handles their non-clinical operations and admin, the MSO.
It must be clear and specific to prevent issues, such as by outlining obligations and duties.
Read the rest of this article to explore what core terms are usually included in a management services organization agreement, contract-drafting pointers, and how a qualified lawyer can assist you with the process.
What Key Terms are in a Management Services Organization Agreement?
When drafting a management services organization agreement, there should be key information provided, such as the following:
- Parties and purpose. The parties involved in the agreement must be accurately listed, and the contract’s reason for existing.
- Services scope. This section of the agreement explains the MSO’s administration duties, such as billing collections.
- Non-clinical authority. It’s important to state that the MSO can’t affect or control any medical decisions.
- Payment. Detail the compensation that the MSO will receive for their work.
- Term and termination. It should be stated how long the contract will last and how it can be terminated early, such as if there is a contract breach.
- Regulatory compliance. Both parties must comply with all the relevant laws and regulations, such as healthcare and privacy rules, to prevent legal disputes.
What are Tips for Drafting a Management Services Organization Agreement?
After including key terms in your agreement, there is additional information to explain for clarity.
Detail the Work Scope
It’s crucial to explain both parties’ duties under the agreement so that you prevent ambiguity over expectations or responsibilities.
Vague wording in the contract can also create liability exposure if you’re unclear about decision-making authority. For example, if the MSO makes decisions regarding operations without authorization in the contract, it could result in disputes.
Outline Fair Compensation
The MSO needs to be paid fairly and this can be a common dispute trigger in management services organization agreements.
Compensation must be aligned with the fair market value of the services being provided. If it’s set higher than that or the compensation is determined by different criteria, it can cause violations.
It’s also important to consider both parties’ interests when defining compensation. For example, parties might decide that the MSO receives a flat fee, revenue percentage, or other payment model.
Define Boundaries
The management services organization agreement must clearly distinguish between the MSO managing the business and not having a say in the clinical side of things. It should also specify that the physician practice maintains control over all clinical decisions. This clarity will help you draft daily operations for both entities, preventing misunderstandings.
Mention Risk Management
Since MSOs provide a variety of services that could put you at legal risk, such as billing and human resources, it should clearly define liability. The agreement must protect the healthcare provider from being responsible for any mistakes or negligence by the MSO.
Comply with Healthcare Regulations
One of the most important sections in your management services organization agreement is that of healthcare regulations compliance. The agreement must be compliant with all federal and state laws, such as the Stark Law and Anti-Kickback Statute. You must ensure that the agreement in no way violates these rules.
To protect yourself, it’s beneficial to consult with a qualified lawyer to check that the MSO agreement is legally compliant to prevent violations or disputes.
How Does a Lawyer Draft a Management Services Organization Agreement?
Besides keeping your management services organization agreement legally compliant, working with a lawyer can help you to have a specific and clear contract. A lawyer can assist you in the following ways:
- They’ll structure the MSO agreement so that it clearly defines both parties’ duties and work scope.
- They’ll consider all payment terms so that they meet the relevant laws and are aligned with your business goals.
- They’ll consider and protect you against any legal risks by including provisions such as indemnification and liability limitation.
- They’ll evaluate any confidential information shared during the agreement term and protect it with contractual clauses.
- They’ll negotiate the agreement with the other party for mutually-favorable terms.
- They’ll tailor the management services organization agreement so that it meets your business operations and reduces the risk of legal disputes.
- They’ll review your agreement if you’ve already drafted it. By having a lawyer conduct an in-depth review, it’ll give you peace of mind that all its terms are clear, fair, and legal.
Where to Find a Lawyer for Management Services Organization Agreement Drafting
If you’d like to find a qualified lawyer to draft your management services organization agreement, you might wonder where to locate a reputable, experienced one. Online legal platforms make the search for a lawyer easier by connecting you with a range of qualified lawyers.
ContractsCounsel is one of the largest online legal marketplaces that gives you access to a network of vetted lawyers. Lawyers on the platform have expertise and years of experience in drafting legally-solid and professional contracts.
To request that a lawyer drafts your management services organization agreement, here are the easy steps to follow:
- Go to the ContractsCounsel marketplace.
- Post your project for free. Include a few details to help you find the most suitable lawyer.
- Wait for lawyer bids. Instead of having to search for a lawyer, you’ll receive multiple bids from lawyers directly on the platform who are interested in your request.
- Review the lawyers’ profiles. Although lawyers will reach out to you with bids, you get to choose who to work with. Review the platform’s lawyer data, such as the lawyers’ location, credentials, client ratings for previous projects, expertise, and credentials.
- Connect with a lawyer you think is best suited to your requirements and hire them to draft your management services organization agreement for a flat fee.
