The Managed Service Organization Model for Healthcare

As private equity buys up clinics, YC backs an alternative: managed service organizations that give independent doctors back-office software and send them patients.

YC says private equity is buying up small and large private clinics across the country. By the time junior healthcare workers are paid, they get only a fraction of what they bill, leaving them overworked and underpaid while much of the revenue goes to overhead and the PE owner.

YC points to a startup alternative: the managed service organization (MSO). An MSO lets doctors run their own clinics by giving them software for back-office tasks like billing and scheduling, and by channeling patients to them. That covers much of what PE ownership provides, so small physician-owned practices can compete with large PE-owned groups.

YC has funded MSOs in several areas, including Nourish (nutritionists), LunaJoy (mental health for women) and Finni Health (autism care for children).

The ask: MSO-model companies in every vertical of healthcare.

Read the full request on YC →