Medical spas offer services such as injectables, laser treatments and other procedures that are the practice of medicine. In New York and many other states, the corporate practice of medicine doctrine generally requires that licensed physicians own and control the entity that provides medical services, and non-physician investors or management companies are limited in the control they may have.

We structure medical spas around those rules. A common model pairs a physician-owned professional entity that delivers medical services with a separate management company that provides space, staff, equipment, billing and marketing under a written management services agreement. The agreement must be drafted so that the physician keeps clinical control and the fees comply with state law.

We prepare the formation documents and the management services agreement, medical director and employment agreements, restrictive covenants, patient consent and records policies, and the equity and investor documents. We also advise on adding locations, bringing in investors and selling a medical spa.

Because the rules vary by state, we review the structure against the law of each state where a location operates, including New York, New Jersey and Pennsylvania.