In California, corporate practice of medicine is not allowed. Only doctors can own and operate a doctor's office, corporation, or business. Most shares must be owned by a California licensed physician, with no more than 49% being owned by a health professional other than a doctor. At no time can a layperson owe a medical corporation.
Medical spas that offer medical procedures must be owned by a doctor. Botox and other similar cosmetic treatments are considered prescriptions, and must be administered by a physician, physician assistant, or advanced nurse practitioner after a bona fide examination of the patient. Many non-medical businessmen and healthcare professionals see an opportunity in medical spa ownership, but aren't sure how to proceed. In the US, the services provided by medical spas are considered medical, and under the corporate practice of medicine doctrine, only a doctor or a corporation owned by a doctor can own a medical facility.
In addition, only physicians or corporations owned by physicians can collect patient fees for the provision of medical services. Structure the ownership of your company in accordance with the law to ensure you are meeting the line between the provision of medical services and cosmetic treatments. Understanding the laws that relate to the ownership of a medical spa is paramount to your success. Some entrepreneurs open medspas that violate the doctrine of corporate practice of medicine, either due to ignorance or unwillingness to follow the rules.
To ensure your business is compliant with California law, make sure you understand all regulations and requirements before opening your medspa.
