Structuring Your Med Spa
Ensuring Compliance Med spas operate under both medical and business regulations. It’s crucial to understand the corporate practice of medicine laws in your state, which may dictate ownership rules, supervision requirements, and the scope of services non-physicians can provide. Consulting a healthcare attorney can help ensure your med spa is set up correctly from the start. Your business structure will affect everything from daily operations to long-term scalability. Choosing the right model will help you stay compliant, attract the right team, and create a sustainable foundation for success. MSO (Management Services Organization) Model – In states where non-physicians are prohibited from owning medical practices, an MSO structure allows entrepreneurs to operate a med spa while remaining compliant with medical regulations. Under this model, the MSO handles all business operations, including marketing, staffing, billing, and facility management, while a licensed physician (or physician-owned entity) oversees all medical treatments. Financially, the MSO and the physician entity enter into a contractual agreement, where the MSO provides administrative and support services in exchange for a management fee. This fee structure must be carefully structured to comply with state corporate practice of medicine laws and avoid violating fee-splitting regulations. Consulting with a healthcare attorney is strongly recommended to ensure proper setup and compliance. Independent vs. Franchise – Decide whether to build a unique brand or join an established med spa franchise. Franchises offer brand recognition, training, and operational support, but they come with fees and restrictions. An independent med spa allows for full creative and business control but requires building brand recognition from the ground up. Choosing Your Business Model Your business model defines how your med spa will operate, ensuring compliance with state regulations while aligning with your vision for growth. Physician-Owned or Partnership Model – Some states require med spas to be owned by a licensed physician or have direct medical oversight. If you’re a non-physician, you may need to partner with a doctor who serves as the medical director.
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For informational purposes only. Not legal, tax, or financial advice.
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