Establishing a Medical Spa under Physician Supervision

In the legal landscape, medical services need either physician involvement or ownership. Does this imply that healthcare professionals are barred from starting a medical spa business?

The medical spa industry is thriving. It offers advanced aesthetic treatments like Botox injections, dermal fillers, and laser hair removal. Additionally, these facilities provide medical-grade skincare and weight loss products. Americans invest millions in these services to enhance their appearance and reverse signs of aging.

The industry is lucrative. However, many entrepreneurs and non-physician healthcare professionals express interest in owning a medspa. They have uncertainties about the process. The challenge lies in the fact that in most U.S. states, medical spa services are legally deemed medical. According to the corporate practice of medicine, only a physician or a physician-owned corporation can own and operate a medical facility. Moreover, only physicians or physician-owned entities are permitted to collect fees for medical services.

Some states have less restrictive laws about medspa ownership. However, many operators may operate outside the legal boundaries. Establishing a medspa that violates the corporate practice of medicine doctrine could lead to fines or imprisonment.

MSO: Providing Liability Protection for Both Parties

In the realm of healthcare business, MSOs have an often-overlooked advantage. They can divide liability for all involved parties. When healthcare professionals or entrepreneurs operate in a facility managed by an MSO, they significantly reduce their business risks. At the same time, the MSO shields itself from potential claims. Medical malpractice could be related to the claims. They could also be related to other liabilities associated with the physician or the physician-owned corporation.

To leverage these liability protections, you must form both the MSO and the medical practice. Pay meticulous attention. Additionally, the Master Service Agreement (MSA) should be drafted. It should ensure comprehensive coverage.

MSOs enable collaboration between physicians and non-physicians. They have separate ownership interests in a medical spa business. However, it is crucial to avoid certain challenges.

  • The physician handles medical decisions and staff hiring.
  • Payments for medical services go to the physician or the physician-owned entity.
  • The involvement of either the physician or the physician-owned corporation is required.

Not following the law may lead to large financial responsibilities for everyone. This includes hefty fines. It could lead to potential revocation of a medical license. It could also result in sanctions for practicing medicine without proper licensing.

Legal Expenses for Medspa’s

Medspa’s in healthcare are subject to close regulation. If you plan to open one, compliance with relevant requirements is crucial. Ensuring that your management services agreement reflects your arrangement is also crucial. This applies to both non-physician entrepreneurs and the healthcare professionals they collaborate with.

Errors in establishing an MSO, running the medspa, or creating agreements between the MSO and the physician or physician-owned entity could have severe career consequences for all parties. Thus, investing time and effort to adhere to proper procedures is valuable.

Consider scheduling a free discussion with Dike Law Group for help with opening a compliant medspa and MSO’s. You can do this at

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