Medical spas, commonly referred to as med spas, are becoming increasingly popular in the business world and in our communities. These ventures blend medical or medical-adjacent services with physical and mental wellbeing at an often lucrative rate. But, med spas must go through meticulous structuring processes to ensure they don’t fall into legal pitfalls that cripple profits and shutter businesses.
Despite their potential, owning and operating a med spa involves numerous legal hurdles. At CLARK.LAW, our aim is to equip business owners and entrepreneurs with the necessary tools and knowledge to avoid these legal pitfalls and focus on a profitable future with the support of data and modern technology.
Improper Med Spa Ownership
You can read our previous post on med spa ownership, but it’s important to understand that there are limitations on who can fully or partially own a med spa and what involvement licensed medical providers must have in many states.
Poor or Improper Patient Intake and Initial Examinations
The patient intake process in a med spa is critical. Conducting medical services raises the standard to a whole different set of regulations that must be meticulously followed in order to avoid crippling litigation.
A comprehensive and diligent good faith intake process is necessary to ensure patients qualify for services, can safely receive services, and would properly benefit from the services you’re selling. This process should involve collecting essential information from patients and ensuring that a qualified medical professional or assistant performs the initial client examinations.
It’s critical to use the information you’re gathering at intake properly. This means identifying patients who may not be suitable candidates for certain procedures or who might need further consultation from a licensed medical professional before proceeding. Mistakes in this area can lead to lawsuits that have the potential to halt your operations or severely impact your business continuity.
Improper Delegation of Services
In our previous article on med spa operations, we discussed the importance of having licensed professionals handling certain necessary elements of your business. Certain procedures at med spas must be performed by or under the supervision of licensed medical professionals. It’s important to structure your staff’s responsibilities carefully, ensuring that only qualified individuals handle specific tasks.
It’s natural to delegate work throughout your business, but this delegation needs to be diligently structured. Are you delegating an element of the service that needs to be done by a licensed medical professional? Are you delegating an element of the service that needs to be quickly communicated to a licensed medical professional if red flags come up?
You need to make sure the right people in your organization are handling the right tasks. Do not take this for granted.
Commissions, Fee-Splitting, and Kickbacks
Understanding the financial flows within your med spa is an important consideration, especially when medical services are involved. The splitting of profits at med spas is a central focus of regulators who want to ensure patients aren’t being ushered in and out of your offices purely for profit, especially for the profit of individuals who aren’t qualified to be involved.
Most states have laws that prevent physicians for paying out kickbacks for referrals because this encourages quickly pushing patients through the process to increase profits.
Not Working With an Attorney
Establishing and operating a med spa is an arduous process that requires careful legal planning and attention. You don’t want to find yourself facing damaging litigation without an experienced attorney by your side—but it’s more beneficial to be proactive. If you’re able to adhere to the necessary regulations upfront then you’ll have a built-in defense for any legal challenges that come your way.
At CLARK.LAW, we are well-equipped to guide you through these processes. Partnering with our team is the proactive step you need ot protect your med spa’s future. To discuss how we can support your med spa venture, contact our team from the very beginning.
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