Who Can Own a Med Spa: Unpacking MSOs

Alex R. Thiersch | 5.31.17

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The question of who can own a medical spa (Med Spa) is a growing concern in the industry as more non-physicians look to enter what is one of the fastest growing markets in the country. Entrepreneurs, mid-level practitioners, spa professionals and others are increasingly looking to participate in med spa ownership, and this presents certain legal hurdles since med spa treatments are qualified as the practice of medicine.

 

The “corporate practice of medicine” is a doctrine that many states have adopted that prohibits non-physicians from employing physicians or offering professional medical services. There is, however, a legal way for non-physicians to play a very significant role in med spas and participate in profits.

 

This is through the Management Service Organization (MSO.)

 

In the May/June issue of MedEsthetics magazine I break down the ins and outs of the MSO including the basic framework and execution, benefits, and the potential pitfalls.

 

If you are a non-physician exploring the medical spa space be sure to contact an attorney familiar with aesthetics in your state to see if the corporate practice of medicine applies to you. Even in states that do not follow the corporate practice of medicine, the MSO arrangement can still often be beneficial with regard to limiting risk and liability.

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