Definitions:
- Outsourced medical billing company: a vendor that runs a practice’s revenue cycle (coding, claims, payment posting, denials, A/R and patient statements) while the practice keeps control of everything else.
- Management services organization (MSO): a company that provides a broad set of non-clinical business services to a practice, such as billing, staffing, HR, purchasing, IT, credentialing, contracting and sometimes office management. Some MSOs are tied to a physician group, private equity owner or health plan.
In one line: a billing company manages your revenue cycle; an MSO manages much of your business.
Side-by-side
| Outsourced billing | MSO | |
|---|---|---|
| Scope | Revenue cycle | Revenue cycle plus operations (staffing, IT, HR, purchasing, contracting) |
| Practice control | Practice keeps operational control | Some operational decisions shift to the MSO |
| Typical pricing | Percentage of collections | Management fee, percentage of revenue, or bundled fees; varies widely |
| Contract | Usually service agreement with BAA | Often longer, broader management agreement |
| Best fit | Practices that want to stay independent and fix collections | Practices that want to hand off most business functions |
Q&A
What is the difference between outsourced medical billing and an MSO?
An outsourced billing company runs a practice’s revenue cycle while the practice keeps control of everything else. A management services organization (MSO) provides a broader set of business services such as billing, staffing, HR, IT, purchasing and contracting.
Is a billing company the same as an MSO?
No. Many MSOs include billing, but a billing company does not take on staffing, HR or other operations.
Which costs less?
It depends on scope. Compare the total fee against what you would pay in-house for the same functions, and get pricing in writing.
Can a practice start with outsourced billing and add more services later?
Yes. Many practices outsource billing first and keep other operations in-house.
What should a practice ask a billing company or MSO?
Ask for pricing in writing, who owns the data, contract term and exit terms, whether they sign a BAA, and which reports you receive each month.
Where AMS Solutions fits
AMS Solutions, Inc. is an outsourced medical billing company, physician-founded in 1992, serving practices nationwide. We work inside your EHR, with AAPC-certified coders and a signed BAA. Flat percentage of collections. No upfront fees. Free Billing Analysis: 866-973-2221.
