Medical Spa Law

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What Is A Medical Spa?

Medical spas are a 16 Billion dollar industry expected to consistently grow 15% every year for the next decade. This makes med spas one of the fastest-growing category of medical practice in the U.S.

Med spas offer a variety of nonsurgical, medical-grade aesthetic procedures in a relaxing, luxurious spa-like environment. Popular treatments include the injection of wrinkle relaxers like Botox® or Hyaluronic Acid dermal fillers for restoring volume loss in the face.

Other procedures include laser-based treatment for sun damage, body contouring services, microneedling, medical weight loss treatments, and
IV hydration.. These practices are also permitted to prescribe and dispense medical-grade skin care products that further enhance the benefits of the procedures.

In the past 5 years, the popularity of wrinkle reducing neurotoxins,
such as Botox®,has skyrocketed in the U.S., with a 40.6% increase in procedures according to the latest figures from the American Society for Aesthetic Plastic Surgery. In 2021, over 3.6 million neurotoxin injections were performed in the United States. The industry has grown tremendously, and is forecast to become a 50 billion dollar industry
by 2030. .

Med Spa Tips

From Sara Shikhman, Esq.

If you’re looking to open your own medical spa practice, here are the basics to help you get started:

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How To Start A Medical Spa

Because of stressful schedules and endless paperwork, many medical professionals dream of a way to connect with patients in a relaxed, beautiful, and positive way. Business professionals dream of a safe bet in a growing field. The aesthetics industry offers a path to success for anybody who has a drive and passion for helping others look and feel amazing. .

When opening a med spa, the primary factors to consider are the people who will be in key positions and the startup costs. In order to be successful, a med spa requires an outstanding medical practitioner as well as an experienced business person. Because these qualities take years to develop and perfect, they are rarely found in one person: thus, many medical spas are built on the foundation of strong partnerships—and well-written agreements.

Because medicine is one of the most highly regulated industries in America, these partnerships must be structured flawlessly in order to be legally compliant with state and federal laws. And that’s just the start. There are thousands of pages of laws, protocols, and codes to follow in order to run a successful business in this space. However, when strategically executed, a medical spa can grow and thrive with many satisfied patients and a huge financial return. Lengea Law is here to assist you in starting off on the right foot and making sure you stay on the path of success with your new endeavor.

More Information About Starting A Medical Spa

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The Costs of Opening a Medical Spa

Opening a med spa is viable for people with a variety of backgrounds. However, no matter where your previous experience lies, one of the first questions that crosses the mind of most aspiring med spa owners involves finance and startup costs. The factors that influence these costs include location, supplies, equipment, construction or renovation, labor, and marketing for your new business. At Lengea Law, we have experience with starting everything from a one-room clinic to a multi-building campus in the trendy part of the city.

What Spa Equipment to Buy?

Our advice is to start with as little inventory as possible, especially for business owners who are just entering the aesthetics industry. A simple, low-cost way to start out is by first offering only Botox, fillers, and microneedling. With just those treatments, it is feasible to hit a $500K revenue goal. Several vials of Botox, a couple of boxes of filler, a few dozen IV drips, and a small treatment device (like a microneedling pen) are enough to get started. Consider buying your first energy-based treatment machine (like a laser) only after you have your first 50 patients consistently coming in for Botox, iller, or IV hydration appointments.

How Much Office Space Does My Spa Need?

There is no one-size-fits-all solution for a medical spa. The amount of space you need for your medical spa depends on your strategy, financing, resources, and unique value proposition. If you are planning on offering simple services to people on a budget, it makes sense to start small. If your business plan involves being the premier med spa in your market, bigger might be better. Many of our clients choose to start on a smaller scale, often without a physical location at all, expanding gradually as their client base grows. Other clients come to us with a space already in mind and we
help them negotiate a fair, flexible lease.

Risks Of Opening A Medical Spa

Because the med spa industry is relatively new, it is sometimes compared to the Wild West. While that may have been true in the early years, with unclear regulations and sporadic enforcement, the industry is now maturing and regulation at state and federal levels is becoming more strict.

Most of the procedures performed in a med spa are considered medical procedures, which require the same supervision and licensing requirements as treatments at any other medical facility. Navigating the nuances of these laws to make strategic decisions requires expert advice. 15 minutes of professional advice can save you $100K in labor costs. For example, an experienced attorney specializing in the aesthetics industry can let you know that in your state, you don’t need to hire a registered nurse to perform micro- needling because that procedure might legally be performed by a licensed tattoo artist.

When med spas were relatively unknown, unlicensed practice of medicine or practitioners working beyond their scope could slip under the regulatory radar. But, because this industry has been growing so rapidly and significantly, regulators are beginning to scrutinize med spas like never before. Allowing a cosmetologist or esthetician who works under a medical provider’s license to perform medical procedures could subject your medical spa to civil liability and risk the practitioner’s license. In most states, the unlicensed practice of medicine is a criminal act. Each state has its own interpretation of who can perform the ever-changing procedures. Failing to ensure the proper supervision of your providers could also result in a denial of professional liability insurance coverage.

Ensuring the proper structure is fundamental to medical spa compliance. In some states, anyone can own a medical spa, while in others it may be limited to a physician or combination of healthcare providers. Failing to properly structure your entity may result in governmental penalty, denial of insurance, or preclusion of a sale.

Take the time to work with experienced healthcare attorneys familiar with the medical spa space in the beginning. Otherwise, it may result in a costly restructure, getting shut down, losing your business or going to jail.