How to Open a Med Spa in Illinois
If you’re considering opening a Medical Spa or IV Hydration business in Illinois, there are several issues—both legal and business-related—that you need to take into consideration to ensure your business will be successful and remain compliant with local, state, and federal laws.
Business Plan Development
Initial Business Step
Initially, you should create a business plan that outlines your business and sets goals for growth after the initial year, five years after opening, and even ten years after opening. Part of your business plan will include your name, logo, target audience, and whether your business will be mobile or have a brick-and-mortar location.
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Legal Considerations in Illinois
Illinois is a Corporate Practice of Medicine (“CPOM”) state, which means only physicians, surgeons, and chiropractors licensed under the Illinois Medical Practice Act can own medical practices–including medical spas—through professional service corporations, including Professional Corporations (“PCs”) and professional limited liability companies (“PLLCs”). While Illinois does allow Advanced Practice Registered Nurses (“APRNs”) to obtain a full practice authority license and operate without a collaborative agreement, APRNs are not licensed under the Illinois Medical Practice Act and, therefore, cannot own a medical practice—including a medical spa.
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Management Services Organization (MSO)
APRNs, RNs, and non-medical professionals interested in becoming involved in the medical spa business can own a Management Services Organization (“MSO”) that provides management and administrative services to the medical spa through a Management Services Agreement (“MSA”) with the medical corporation. According to the terms of the MSA, the MSO can handle all day-to-day, non-medical aspects of the business, including licensing the brand name to the spa, marketing the spa’s services, patient billing and collections, obtaining office space and equipment, and hiring non-medical staff.
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Insurance Considerations
Business owners should obtain general liability insurance to protect against lawsuits arising out of accidents as well as property damage. Furthermore, the MSO and the professional corporation can determine who is responsible for obtaining medical malpractice insurance for the professional corporation. Business owners should check with their insurance carrier to determine requirements for adding an additional insured onto a policy and policy bundling opportunities.
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Physical and Mobile Locations
Business owners may choose to open a mobile spa, a physical location, or a combination of both. If you decide to open a physical location, check with your local municipality to determine whether the area is zoned for medical services and if you need any local permits to run a medical spa. In Illinois, all medical spas must be licensed under the Illinois Department of Financial and Professional Regulation (“IDFPR”). To obtain a medical spa license, you will be required to provide information about your business, including credentials of staff members, any written safety protocols, and any prior disciplinary action against you or your employees and staff.
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Services and Equipment
Select which services and treatments you wish to provide in your medical spa, and purchase the necessary equipment to provide those services. Lengea advises new business owners to offer only a few popular services. Anyone handling any equipment or providing any treatments or services to patients must be appropriately licensed to do so and have the proper delegated authority from a physician. For example, under Illinois law, laser treatments that may disrupt the eye can only be performed by a physician; ablative laser treatments (which are expected to excise, burn, or vaporize the skin below the dermal-epidermal junction) can be delegated by a physician to another individual only under on-site physician supervision; finally, “non-ablative” laser treatments (treatments that are not expected or intended to excise, burn, or vaporize the epidermal surface of the skin) can be delegated by a physician to another individual either under on-site physician supervision or when the physician is available either by phone or other electronic means and can respond promptly to any questions or complications.
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Marketing and Branding
As part of the marketing and branding services for the medical spa business, owners should create a website for customers to review the spa’s services and schedule appointments. Owners may want to work with website developers to create a site that is easy to navigate, clearly shows spa hours and location, and makes reviewing services and scheduling appointments as easy as possible. The website should also be HIPAA compliant and have proper safeguards to protect patient information.
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Vendor Relationships
Business owners should attempt to develop vendor relationships when obtaining equipment and supplies. This could lead to training opportunities for new services to offer to patients.
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Marketing Strategy
Marketing will be vital to the organization, especially in the early stages of the business. While marketing can take many forms, social media will likely be the most effective—and cost-effective—method. Business owners should create social media pages, post about their services, and attempt to become involved in various industry group pages.
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Operational Documentation
The medical spa should have documented policies, procedures, and clear protocols for all services provided in place. Clinical service protocols should be clear, thorough, and sufficiently outline expectations regarding procedures. The medical spa should develop Informed Consent documents for patients to sign before undergoing any procedure. These consents should inform the patient of the procedure, any potential side effects and contraindications, and any other pertinent information regarding patient expectations. Human Resources documentation, such as Employee Handbooks, corporate policies and procedures, and any Employment or Independent Contractor Agreements, should clearly state all expectations, duties, and responsibilities for all staff members.
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Does Illinois prohibit the corporate practice of medicine?
Yes, only individuals licensed under the Illinois Medical Practice Act, including physicians and surgeons, can own medical practices through professional service corporations (PCs and PLLCs).
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Do Advanced Practice Registered Nurses (“APRNs”) have full practice authority in Illinois?
After completing 250 hours of continuing medical education and 4,000 hours of clinical experience, APRNs can obtain full practice authority.
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Who can perform injectable cosmetic services in Illinois?
Physician Assistants (“PAs”) and Registered Nurses (“RNs”) may perform injectables under direct physician supervision. APRNs do not require supervision.
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Who can perform injectable cosmetic services in Illinois?
Microneedling is considered the practice of medicine in Illinois; cosmetologists and aestheticians are prohibited from providing microneedling treatments.
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Can Practice Registered Nurses (“APRNs”) be medical directors of med spas or IV hydration business in Illinois?
Yes, certain APRNs can be medical directors of med spas or IV hydration businesses in Illinois.
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