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Professional Integration - Essay Example

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Summary
Management Service Organizations have gained popularity over the years as more and more hospitals and health system affiliations have resorted to it. Aside from the evident substantial benefits these healthcare companies could attain from MSOs,it is beyond question that one of the driving factors of the rise of MSOs today is its capability to enable companies to find external organizations to perform the business tasks that they are not good at…
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Professional Integration
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Introduction Management Service Organizations have gained popularity over the years as more and more hospitals and health system affiliations have resorted to it. Aside from the evident substantial benefits these healthcare companies could attain from MSOs,it is beyond question that one of the driving factors of the rise of MSOs today is its capability to enable companies to find external organizations to perform the business tasks that they are not good at. It then became a trend for many healthcare companies to strategically look for specialized external companies or MSOs who can effectively manage some of their functions.
The Good Idea Company
This model of MSO has become a buzz word within the circuit of medical professionals and health system affiliations. Basically, the Good Idea Company model aims to perform specialized medical core and noncore functions wherein the tasks concerned depends upon the command of the customer. Such commands of tasks to be performed by MSOs include medical transcribing and administrative functions.
The Venture Capital Company
Primarily, this model of MSO represents manifold business tasks and operations which cannot be performed deliberately by health professionals. Thus, for these noncore operations which are far from the field of medicine such as finance and accounting, health system affiliations find this model a favorable one which allows them to have the work done by specialized MSOs.
Comparison: Professional Physician-Hospital Integration
Between the two models of MSOs above, the Venture Capital Company provides more privilege for participating parties for integration. Since the Venture Capital Company aims to generate capital by outsourcing administrative and managerial operations to MSOs who specialize in these fields, they become more focused on their core operations. Hence, this allows a rapid pace of integration for both parties. On the other hand, the Good Idea Company provides slow but sure integration which is only limited to the tasks the customer commands. However, it enables the MSOs to strategically integrate because the tasks to be performed are more detailed than in any other model. Thus, MSOs are able to concentrate on the operations being outsourced to them by the customers.
Comparison: Strategies for Effective Integration
Considering the professional physician-hospital integration between the two models, the Venture Capital Company model befits an ideal model. Yet, judging upon the strategies for effective integration performed by the two models, the Good Idea Company proves to be a more substantial model of MSO to follow. The Good Idea Company provides a higher chance for effective integration because of its strategic plan. On the side of the MSOs themselves, since the operations to be performed are much limited, they are able to concentrate more on such tasks. This gives them more time to experiment and find a suitable strategy for the healthcare environment of the customer. Conversely, the Venture Capital Company faces many risks, considering the quest for a suitable strategy for integration. Since this model covers almost all the major points of business functions, its capability to generate strategic plans for integration depends upon the size of the MSO. Relatively, if the MSO is small, its capability to focus on each business task is significantly limited.
Recommendations:
Theoretically, finding the better MSO model between the two depends upon the priorities of the customer. If the customer considers a long term relationship with an MSO, the Good Idea Company suits a perfect model. However, if the customer prioritizes the capital to be generated within a short period of time, the Venture Capital Company model is favorable for such situation. Read More
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