Can a Non-Physician Own a Medical Spa in Georgia?
The answer is a qualified yes, but it requires careful navigation of Georgia’s corporate practice of medicine doctrine. Can a Non-Physician Own a Medical Spa in Georgia? They can, but only if they structure the business in a way that ensures a licensed physician retains ultimate control over all medical decisions and procedures.
The Corporate Practice of Medicine Doctrine in Georgia
Georgia, like many states, adheres to the corporate practice of medicine doctrine. This doctrine generally prohibits corporations or other entities from practicing medicine. The reasoning behind this is to protect patient safety and prevent business interests from interfering with a physician’s independent medical judgment. The doctrine aims to keep medical decisions solely within the purview of licensed healthcare professionals.
Structuring a Compliant Medical Spa
Can a Non-Physician Own a Medical Spa in Georgia? Yes, if the ownership structure clearly separates the business management aspects from the medical practice. The most common method for achieving this is the Management Services Organization (MSO) model.
Here’s how the MSO model typically works:
- The non-physician forms an MSO.
- The MSO owns the assets and manages the business aspects of the medical spa (e.g., marketing, accounting, human resources, facility management).
- A licensed physician (or a physician-owned professional corporation) forms a separate medical practice.
- The medical practice contracts with the MSO for administrative and management services.
Crucially, the contract must be carefully drafted to ensure the physician retains complete control over all medical decisions.
Key Considerations for Compliance
Several factors are crucial for ensuring compliance with the corporate practice of medicine doctrine:
- Physician Control: The physician must have unfettered control over all medical procedures, protocols, and patient care decisions. The MSO’s involvement should be limited to administrative and management support.
- Fee Splitting: The financial arrangement between the MSO and the medical practice must not constitute illegal fee splitting. The MSO should charge a fair market value for its services, and the physician should retain a reasonable portion of the revenue generated from medical services.
- Advertising and Marketing: Marketing materials must accurately reflect the services offered and the qualifications of the medical professionals. They should not mislead patients into believing that the MSO is providing medical care.
- Supervision and Delegation: The supervising physician must be properly licensed and qualified to oversee the medical procedures being performed at the medical spa. Delegation of medical tasks to non-physician personnel must comply with Georgia law and regulations.
Common Mistakes to Avoid
- Undercapitalizing the Medical Practice: The medical practice should have sufficient financial resources to operate independently of the MSO.
- Failing to Document Compliance: Maintain detailed records of all contracts, policies, and procedures to demonstrate compliance with the corporate practice of medicine doctrine.
- Allowing the MSO to Control Medical Decisions: This is a direct violation of the doctrine and can lead to legal repercussions.
- Improper Fee Structures: Illegal fee splitting can result in significant penalties.
Benefits of the MSO Model
- Allows non-physicians to invest in and manage the business aspects of a medical spa.
- Protects the physician’s professional autonomy.
- Provides the medical practice with access to valuable administrative and management expertise.
- Can lead to increased efficiency and profitability.
The Role of Legal Counsel
It is strongly recommended that both the non-physician owner and the physician seek legal counsel experienced in Georgia healthcare law and corporate practice of medicine issues. An attorney can help structure the business in a compliant manner, draft the necessary contracts, and provide ongoing legal guidance.
Frequently Asked Questions (FAQs)
Can I hire a physician as an employee and still own the medical spa as a non-physician?
Yes, you can hire a physician as an employee, but the key is that their employment agreement doesn’t give you control over their medical judgment or decision-making. The physician must still retain ultimate authority over all medical aspects of the practice.
What types of procedures are typically performed at medical spas?
Common procedures include laser hair removal, Botox injections, dermal fillers, chemical peels, microdermabrasion, and non-surgical body contouring. These procedures are considered medical treatments and require appropriate medical oversight.
Can a nurse practitioner or physician assistant own a medical spa in Georgia?
While they can’t directly own the medical practice entity outright without physician involvement, they can work in partnership with a physician, or form a professional corporation with a physician and manage the non-medical aspects of the spa using the MSO model. The supervising physician retains ultimate responsibility for medical oversight.
What are the potential penalties for violating the corporate practice of medicine doctrine?
Violations can result in disciplinary action against the physician’s medical license, civil fines, and even criminal charges in some cases. The non-physician owner could face legal action for engaging in the unauthorized practice of medicine.
What specific language should be included in the MSO agreement?
The agreement should explicitly state that the physician has sole and absolute discretion over all medical decisions. It should also outline the specific services provided by the MSO, the compensation structure, and the responsibilities of each party.
How often should the MSO agreement be reviewed and updated?
It’s advisable to review the agreement annually and update it as needed to reflect changes in the law, regulations, or the business operations of the medical spa.
What insurance coverage is needed for a medical spa?
You’ll need professional liability insurance (malpractice insurance) for the medical professionals, general liability insurance for the business, and workers’ compensation insurance if you have employees.
Can the MSO handle patient billing and collections?
Yes, the MSO can handle patient billing and collections, but the physician must approve the billing codes used and ensure that the charges are accurate and compliant with applicable regulations.
What are the requirements for advertising medical spa services in Georgia?
Advertising must be truthful and not misleading. It should accurately represent the services offered and the qualifications of the medical professionals. Any claims made in advertising should be supported by scientific evidence.
Can the physician delegate medical tasks to unlicensed personnel?
The physician can delegate certain medical tasks to unlicensed personnel, but only under proper supervision and in accordance with Georgia law and regulations. The physician remains responsible for the actions of their staff.
What steps should I take if I’m concerned about compliance with the corporate practice of medicine doctrine?
Consult with an experienced healthcare attorney to review your business structure and operations. They can provide guidance on ensuring compliance and minimizing your risk of legal exposure.
Can a Non-Physician Own a Medical Spa in Georgia? What if the physician leaves? The MSO must immediately seek a replacement physician who meets all the requirements to oversee medical practices. Operations that necessitate a physician need to cease until a suitable replacement is found.