Advantages and Disadvantages of Establishing a Dental MSO in Southern California
Jun 12 2024 0

Advantages and Disadvantages of Establishing a Dental MSO in Southern California

If you are a dentist contemplating becoming a part of corporate dentistry, you may consider joining a management service organization (MSO). An MSO is a business organization that handles the administrative duties of a dental practice and manages relationships with payers and regulators. As an equity-backed corporation, MSOs differ from dental service organizations (DSO) in that a DSO is owned by the dentist.

If you are a California dental professional ready to establish an MSO, a prepared Southern California MSO attorney at Leiva Law Firm can assist you. With decades of experience forming management companies and ensuring that all regulations are adhered to, the Leiva Law Firm is here for you and prepared to help you develop your dental career by establishing a California MSO.

What to Know About MSOs

Advantages and Disadvantages of Establishing a Dental MSO in Southern California There are several benefits that a California dental professional can take advantage of with an MSO, including:

  • Since an MSO handles a dental practice’s administrative and regulatory aspects, a dentist will no longer have to spend time on these tasks. Instead, a dentist can focus on what they do best: dentistry. Dentists with MSO will no longer have to hire and train office staff, track down patients for late payments, or keep the office running.
  • An MSO allows dentists to choose their hours and keep them on a schedule. No longer will a dentist have to wear all the hats necessary to run a business or be concerned that their absence at the office will leave patients without care. With administrative functions taken care of and other dentists covering each other, it is easier to have a better work-life balance.
  • Being a part of an MSO allows dentists more freedom over their professional and personal lives. An MSO’s network makes it possible for dentists to move, go on vacation, and have more life options than if they were a private practice.

The above benefits are great and can be very appealing to a dentist. Still, where there are advantages, there are also drawbacks. Some of these include:

  • An MSO has a priority objective of making profits because they are business-focused. This could mean that a dentist would be required to align their treatment of patients with the guidelines established by the MSO. Additionally, an MSO may want dentists to push various clinical techniques or products to boost profits.
  • An MSO does not want to reinvent the wheel or stray too far out of the established box of proven standards for applying medicine. As a result, a research-oriented dentist or a curious dentist who stays up-to-date on new technologies will be unlikely to practice them under an MSO.
  • Since private practicing dentists do not have a cap on their compensation because they keep all of their practice’s profits, there may be a pay cut working for an MSO where an employment agreement will be in place and will dictate compensation.

Speak to an Attorney at Leiva Law Firm Today

For more information on MSO formation, please call the Leiva Law Firm at (818) 519-4465 today to schedule a free consultation with an experienced MSO attorney in Southern California. 



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