Management Services Organization
How Management Service Organizations Help Non-Physicians Own Healthcare Businesses in Texas
As a non-physician entrepreneur in Texas, you want to enter the healthcare industry. But, you’ve likely hit a roadblock: state laws. Texas has a doctrine that restricts non-physicians from owning or controlling medical practices. It is called the corporate practice of medicine doctrine. But here’s the good news: Management Services Organization (MSO) offer a way forward.
Think of an MSO as your behind-the-scenes partner. While physicians focus on patient care, the MSO manages the business side—billing, HR, marketing, compliance, IT, and more. This setup allows non-physician entrepreneurs to invest in and manage healthcare businesses. It keeps them on the right side of Texas law.
In Texas, the rules are: licensed physicians own the clinical side of the business. The MSO owns and manages everything non-clinical. They’re connected through a Management Services Agreement (MSA). It defines their roles and responsibilities. This keeps you compliant while giving you control over business operations.
Why does this matter? For one, MSOs make healthcare business ownership a reality for non-physicians in Texas. They also bring expertise. It will help you navigate the complexities of running a healthcare business. And if growth is your goal, MSOs make scaling easier, whether it’s opening new locations or upgrading technology.
Of course, working with a Management Services Organization has its challenges. These include drafting airtight MSAs and respecting clinical independence. But, with the right strategy, MSOs are a powerful way to enter the healthcare market. They allow full compliance with state regulations. In Texas, MSOs aren’t just a workaround—they’re a smart, legal pathway to success in healthcare entrepreneurship. Our team of healthcare attorneys can help bring your goals into reality in 2025! Schedule a FREE Intake discussion – Let’s discuss them!
Also, Read more about How Non-Physicians Can Own a Medical Practice here.
