You may be surprised to know that many med spas in Colorado are illegally owned. Who can own a med spa and who can provide services in a med spa are two very different legal issues. Many different types of providers can offer med spa services, but only physicians or physician/physician assistants, and in some cases an advanced practice nurse practitioner with full prescriptive authority, are authorized to own a med spa. In the case of a physician/physician assistant ownership, the law requires that a physician own at least 51% and a physician assistant can own up to 49% of a med spa.
The law that defines who can own a med spa is found in the Corporate Practice of Medicine (CPOM). This Colorado statutory law prohibits an unlicensed individual or non-professional entity from practicing medicine, employing or contracting with a physician to practice medicine on the physician’s behalf or interfering with a physician’s professional judgment or practice of medicine.
Even though many med spas do not look like medical practices that is exactly what they are according to Colorado law. And, just as the med spa may not look like a medical practice, the services offered also may not seem to be medical procedures because these procedures are elective with the specific purpose of improving a patient’s aesthetic appearance. These factors contribute to the rampant confusion about med spa ownership. The rumor mill doesn’t help. A frequent response to the sobering reality of who can own a med spa is “that can’t be true, lots of individuals who are not a physician, physician assistant or advanced practice nurse practitioner own a med spa. Everyone is doing it!” Not only are these individuals legally incorrect, but they risk enforcement of the law that can range from having their business immediately shut down to criminal penalties.
If you are hearing this information for the first time, don’t panic. There are solutions. One option may be to create a Management Service Organization (MSO). What is an MSO? Essentially it is an entity organized to provide non-professional or non-clinical services to properly owned med spas. There are numerous services that a MSO can offer which will turn a profit. These services include providing managing overhead, billing, marketing, leasing space and equipment and a variety of other services. Important to note is that a MSO is prohibited from influencing the clinical operations of a med spa. Additionally, a MSO cannot employ a physician, physician assistant or advanced practice nurse practitioner.
There are many other issues surrounding med spa ownership that Maureen West & Associates is prepared to help you navigate. This purpose of this blog is to create awareness and offer protection if you are finding out that a med spa you own or practice in does not comport with the Corporate Practice of Medicine.
