Capability

    MSO Economics & Valuation

    Distinguish management-company value from the economics of the clinical business.

    An MSO's revenue can depend on the services it provides and the management agreements that define its compensation. A fee formula, ownership structure or growth assumption cannot be evaluated independently of those responsibilities.

    Cabra examines the economics and value of management services organizations and related arrangements for owners, healthcare businesses and their advisors.

    01

    Identify what earns the fee

    Define the services, resources, responsibilities and contractual rights held by the MSO. Distinguishing management-company functions from clinical responsibilities helps explain both costs and financial exposure.

    02

    Evaluate the model

    Analysis can consider fee terms, allocations, scalability, agreement duration and assumptions about additional practices. A growth scenario should show the investment and obligations required to support that growth.

    03

    Connect the structure to the decision

    The work may support a valuation, acquisition, ownership change or management-fee review. Cabra's financial and valuation analysis helps owners and advisors understand the economics of the management company and its arrangements.

    Start with the facts

    Discuss the decision in front of you.

    Contact Cabra Consulting to discuss the arrangement, the question to be answered and the financial support that may be useful.

    Contact Cabra