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Healthcare MSO Market Size, Industry Trends, Growth Analysis and Forecast to 2027

Healthcare MSO Market Size, Industry Trends, Growth Analysis and Forecast to 2027

Healthcare MSO Market Size, Industry Trends, Growth Analysis and Forecast to 2027

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, fill out a quick inquiry for a sample report.

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 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.

Healthcare Management Service Organization (MSO) Market

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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

Healthcare MSO Market: Competitive Landscape

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

Healthcare Management Service Organization (MSO) Market - Sample Deliverables

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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.

Healthcare MSO Market Report 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.

Key Strategic Questions Addressed

  • What is the market size and forecast for the Healthcare Management Service Organization (MSO) Market?
  • What are the historical, present, and forecasted market shares and growth rates of various segments and sub-segments of the Healthcare Management Service Organization (MSO) Market?
  • What are the major growth drivers, restraints/challenges impacting the market?
  • What are the opportunities prevailing in the market?
  • What is the investment landscape?
  • Which region has the highest share in the market? Which region is expected to witness the highest growth rate in the next 5 years?
  • Who are the major players operating in the market? What is the competitive positioning of key players?
  • Who are the new players entering the market?
  • What are the key strategies adopted by players?
  1. Research Methodology
    • Secondary Research
    • Primary Research
    • Market Estimation
    • Market Forecasting
  2. Executive Summary
  3. Market Overview
    • Market Dynamics
      • Drivers
      • Restraints
      • Opportunities
    • Industry Speaks
  4. Healthcare Management Services Organization (MSO) Market - Size & Forecast (2019-2027), By Services
    • Operations Management
    • Network Management
    • Quality Management
    • Care Management
    • Other Services
  5. Healthcare Management Services Organization (MSO) Market - Size & Forecast (2019-2027), By Ownership
    • Hospitals
    • Physician Groups
    • Investors
    • Others
  1. Healthcare Management Services Organization (MSO) Market - Size & Forecast (2019-2027), By Region
    • North America (U.S. & Canada)
    • Europe (UK, Germany, France, Italy, Spain, Rest of Europe)
    • Asia Pacific (China, India, Japan, Rest of Asia Pacific)
    • Rest of the World (Latin America, Middle East & Africa)
  2. Competitive Landscape
    • Key Players and their Competitive Positioning
      • Competitive Positioning of Key Players (2022)
      • Service Offerings Assessment, By Players
    • Key Strategies Assessment, By Player (2021-2023)
      • New Service Launches
      • Partnerships, Agreements, & Collaborations
      • Mergers & Acquisitions
      • Other Developments
  1. Key Companies Scanned (Indicative List)
    • MedVanta
    • Envolve Health
    • OneOncology
    • Vanguard Health Solutions
    • Neolytix
    • Argusmso
    • Other Players

The study has been compiled based on extensive primary and secondary research.

Secondary Research (Indicative List)

Healthcare Management Service Organization (MSO) Market - Research Methodology

Primary Research

To validate research findings (market size & forecasts, market segmentation, market dynamics, competitive landscape, key industry trends, etc.), extensive primary interviews were conducted with both supply and demand-side stakeholders.

Supply Side Stakeholders:

  • Senior Management Level: CEOs, Presidents, Vice-Presidents, Directors, Chief Technology Officers, Chief Commercial Officers
  • Mid-Management Level: Product Managers, Sales Managers, Brand Managers, Business Development Managers, Consultants

Demand Side Stakeholders

Healthcare Management Service Organization (MSO) Market - Research Methodology

Breakdown of Primary Interviews

Market Size Estimation

Both ‘Top-Down and Bottom-Up Approaches’ were used to derive market size estimates and forecasts.

Data Triangulation

Research findings derived through secondary sources & and internal analysis were validated with Primary Interviews, Internal Knowledge Repository, and Company Sales Data.

What services do Healthcare Management Service Organizations (MSOs) provide to medical practices and healthcare facilities?
A Healthcare Management Service Organization (MSO) is a health care specific company that offers non-clinical services to medical practices, healthcare providers, and ambulatory care facilities. These services primarily involve administrative and management support.
How do MSOs create economies of scale in the healthcare industry, and what impact does this have on management expenses for health systems?
MSOs create economies of scale by encouraging health systems to seek partnerships, increase membership, and reduce per-member-per-month (PMPM) management expenses. Through these efforts, MSOs help health organizations achieve cost efficiencies and optimize their resources.
What are the key elements of the competitive landscape in the Healthcare Management Service Organization (MSO) Market, and who are some prominent players in this industry?
The competitive landscape of the MSO market includes key players such as MedVanta, Envolve Health, OneOncology, Vanguard Health Solutions, Neolytix, Argusmso, among others. These organizations contribute to the market's growth through their comprehensive MSO services, emphasizing the importance of non-clinical support in the healthcare sector.
What role do MSOs play in network expansion for healthcare organizations, and how do they relieve administrative and managerial responsibilities?
MSOs provide a competitive edge to healthcare organizations by relieving them from administrative and managerial responsibilities. This allows health organizations to focus on network expansion and strategic growth initiatives, as MSOs handle non-clinical tasks on their behalf.
How do MSOs impact the pricing of medical supplies and services, and what role does volume aggregation play in obtaining preferred pricing?
MSOs ensure access to the lowest prices of medical supplies and services by aggregating volumes, allowing them to achieve economies of scale. This volume aggregation enables MSOs to negotiate and obtain preferred pricing on essential components like medical supplies and healthcare insurance, contributing to cost savings for healthcare organizations.