Tax Planning for Health Care Management Services Organizations

This article originally appeared in the May 2025 issue of The Tax Adviser.

In the rapidly evolving health care industry, organizational structures often include management services organizations (MSOs) to set apart clinical and nonclinical activities. The purpose of an MSO is to support the related health care practice by providing essential administrative and management services. MSO services can include billing, human resources, compliance, IT support, and other nonclinical operations. 

An MSO structure can enhance operational efficiencies and cost savings, but it also must adhere to various state corporate–practice–of–medicine (CPOM) rules. Considering the regulations and tax regimes applicable to MSOs allows organizations to select the most tax–effective arrangement for their specific circumstances.

BDO’s Peter Diakovasilis provides details in the full article in The Tax Adviser.