Physician Practice Transition to Independent Operations with MSO Alignment
Engagement Overview
CABE Consulting partnered with a physician practice transitioning from employment within a national health system to independent practice operations supported by a management services organization (MSO) arrangement with a local private physician group. The practice sought to regain operational independence while ensuring continuity of care, financial stability, and administrative support after separation from a large health system. The transition required careful navigation of contractual obligations, operational restructuring, and alignment with a new MSO partner.
Objectives
Support an orderly and strategic exit from the health system
Establish a compliant and sustainable MSO relationship
Ensure operational readiness for independent practice
Create governance, compensation, and financial structures aligned with long-term success
CABE’s Role
CABE served as the primary strategic advisor and implementation partner, representing the practice’s interests across legal, operational, financial, and administrative aspects of the transition.
Scope of Services
Assessment of existing contractual obligations with the health system and advisory support related to exit strategy
Evaluation of the private physician practice’s MSO structure and management services agreement
Negotiation of MSO agreement terms on behalf of, and in the best interest of, the client
Support for operational transition activities as the practice moves to independent operations
Advisory support related to payer contracting strategy
Development of a governance framework for the newly formed semi-private practice
Advisory support related to physician compensation models and incentive structures
Ongoing post-transition advisory support
Outcome
The practice is progressing through a structured transition with improved clarity around governance, operations, and financial alignment, CABE’s involvement is helping ensure a smooth separation from the health system while position the practice for long-term independence and stability.
Why It Matters
A successful transition from health system employment to independent practice requires coordinated advisory support across contracts, operations, governance and financial strategy.