21.12.2023

Healthcare MSO Market Size, Industry Revolution and Demand from 2023 to 2028

Medi-Tech Insights Health & Medical

Healthcare MSO Market Size, Industry Revolution…

The Healthcare Management Service Organization (MSO) Market is expected to witness a healthy growth rate by 2027. The growing trend of consolidation of smaller practices to achieve economies of scale and improve operational efficiency, a rising aging population & chronic diseases, growing demand for specialty care, increasing investments by private equity companies, rising adoption of technology are some of the key factors driving the market. To learn more about the healthcare MSO Market research, get quick inquiry for a sample report https://meditechinsights.com/healthcare-mso-market/request-sample/

Healthcare Management Service Organization (MSO) is a health care specific company that provides non-clinical services (administrative and management services) to medical practices, healthcare providers, and ambulatory care facilities.

Advantages Offered by MSOs Fuels Its Demand

A MSO is beneficial to a health system in numerous ways:

  • Improved Quality and Better Efficiency: Due to a common governance structure care management delivery across the organization is standardized. Population health reporting and analytics member identification, risk stratification, attribution, care management delivery, and staffing are all streamlined, which in turn results in performance improvement and better utilization
  • Economies of Scale: MSOs urge the health systems to scout for partnerships, increase membership, and cut per-member-per-month (PMPM) management expenses by creating economies of scale
  • Network Expansion: MSOs offer a competitive edge to healthcare organizations as they relieve them from performing administrative and managerial responsibilities. MSOs serve as an incentive for health organizations that are looking to expand their network

"MSO ensures access to the lowest prices of medical supplies and services... MSOs aggregate volumes and hence are able to achieve economies of scale, which in turn allows them to obtain preferred pricing on medical supplies, healthcare insurance, etc."

  • CEO, Leading Healthcare MSO, U.S.
Foray of Next-Generation MSOs in Orthopedics – An Emerging Trend

Orthopedic physician practices often face challenges such as high overhead costs, deteriorating payments, increased regulatory requirements, and payer and administrative hurdles. On average, orthopedic physician practices spend ~ 50% of their revenue on overheads. To overcome these challenges, a new type of MSOs have ventured into the market that not only provides orthopedic physician practices the tools they need to streamline business functions but also provides technical expertise to succeed.

For instance, in June 2022, a coalition of leading independent orthopaedic and musculoskeletal (MSK) specialists announced the launch of MedVanta, nation's largest physician-owned and operated musculoskeletal management services organization. MedVanta offers next-generation MSO strategies, people, processes, technology and solutions to independent orthopaedic and MSK practices for transforming business operations.

Growing Investments by Private Equity Firms Drive the Market

Citing the lucrative prospects of the market, several private equity companies have also invested in the Healthcare MSO Market.

  • For instance, in April 2023, TPG and AmerisourceBergen Corporation agreed to acquire OneOncology. OneOncology is one of the fastest-growing oncology MSO in the United States
  • In Feb 2021, Cimarron Healthcare Capital, a private equity firm focused on making investments in healthcare companies completed the acquisition of CareAccess MSO. CareAccess MSO partners with primary care physician groups in support of establishing and managing value-based risk contracts with Medicare Advantage plans
Competitive Landscape

Some of the key players operating in the market include MedVanta, Envolve Health, OneOncology,  Vanguard Health Solutions, Neolytix , Argusmso, among others.

The Healthcare Management Service Organization (MSO) Market is expected to gain further momentum in the coming years due to rising focus on value-based care, foray of next-generation MSOs, growing emphasis on improving patient experience, rising investments in patient engagement tools, and aggressive organic and inorganic growth strategies followed by the players.
Access Healthcare Management Service Organization (MSO) Market at https://meditechinsights.com/healthcare-mso-market/

Healthcare MSO Market Scope

Report Metric

Details

Market Growth Rate

The Healthcare Management Service Organization (MSO) Market is expected to witness a healthy growth rate by 2027.

Key Drivers

- Consolidation of smaller practices - Aging population & chronic diseases - Growing demand for specialty care - Increasing investments by private equity companies - Rising adoption of technology

Definition of MSO

A Healthcare Management Service Organization (MSO) is a health care-specific company that provides non-clinical services (administrative and management services) to medical practices, healthcare providers, and ambulatory care facilities.

Advantages Offered by MSOs

- Improved Quality and Better Efficiency - Economies of Scale - Network Expansion

CEO Quote

"MSO ensures access to the lowest prices of medical supplies and services... MSOs aggregate volumes and hence are able to achieve economies of scale, which in turn allows them to obtain preferred pricing on medical supplies, healthcare insurance, etc." - CEO, Leading Healthcare MSO, U.S.

Next-Generation MSOs in Orthopedics

Emergence of MSOs offering tools and technical expertise to streamline business functions for orthopedic physician practices. Example: Launch of MedVanta, the nation's largest physician-owned and operated musculoskeletal management services organization.

Private Equity Investments in MSO Market

- TPG and AmerisourceBergen Corporation's acquisition of OneOncology - Cimarron Healthcare Capital's acquisition of CareAccess MSO

Competitive Landscape

Key Players: MedVanta, Envolve Health, OneOncology, Vanguard Health Solutions, Neolytix, Argusmso, among others.

Market Momentum Drivers

- Rising focus on value-based care - Foray of next-generation MSOs - Growing emphasis on improving patient experience - Rising investments in patient engagement tools - Aggressive organic and inorganic growth strategies followed by the players.

 
 
  • Management
  • Healthcare
Medi-Tech Insights Health & Medical
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