Medical spas, commonly referred to as med spas, are becoming a more regular occurrence in our communities. These “spas” offer a variety of services largely focusing on skincare, laser hair removal, non-surgical enhancements like Botox, fillers, light treatment, and other treatments that borderline on medical solutions for people looking for alternatives outside of a hospital.
But, who is able to own these companies? Different states govern these in different ways. We want to explore these ownership guidelines as the issue continues to pop up about ownership structures for med spas and the complex legal and financial troubles that often follow.
Most States Classify Med Spas as Medical Practices
The most common handling of these organizations across the United States is to refer to them as medical practices. This classification means a state-licensed physician is required to own these practices before any services are able to be rendered.
At the time of this writing, North Carolina, the state CLARK.LAW is located in, requires a licensed physician to own a med spa. Alabama, California, Colorado, Georgia, Idaho, Indiana, Kansas, Kentucky, Maryland, Minnesota, Missouri, Montana, Nebraska, Nevada, New Jersey, New York, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Washington (state), West Virginia, and Wisconsin all set limitations on who is able to own a med spa.
On the flip side, Alaska, Arizona, Connecticut, Delaware, Florida, Hawaii, Illinois, Iowa, Louisiana, Maine, Massachusetts, Michigan, Mississippi, New Hampshire, New Mexico, Oklahoma, South Carolina, Utah, Vermont, and Virginia allow non-licensed individuals to own a med spa. In most cases, however, those owners are required to hire licensed professionals to conduct any services.
Some of these states even set limitations on who is able to share the profits of a med spa – with several requiring that all profit sharing be done among licensed medical professionals exclusively. Consult with an attorney before moving forward with the structure of your med spa ownership group in order to avoid significant legal challenges down the line.
Potential Legal Issues
A failure to thoroughly vet your med spa venture before moving forward could cost you significantly. Consider the challenges that arise when medical procedures are performed without a license. If your state considers a med spa to be a medical practice and, thus, its services to be medical services, proceeding without a license is grounds for a crippling lawsuit.
Medical lawsuits are some of the most challenging to overcome and to beat, so relying on an experienced legal team before moving forward is a sound choice. At CLARK.LAW, we work with entrepreneurs across a variety of industries, including med tech, to provide solutions with an eye toward the future of business law. Contact our team to make more informed and sound business decisions that protect your hard work.
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