Can anyone open a MedSpa?


With the global medical spa market projected to grow at a compounded annual growth rate of 12.2 percent between 2018 and 2025, the medspa industry is one of the most exciting and rapidly expanding areas in medicine.

Medspas offer medical-grade aesthetic procedures, including botox injections for wrinkles, chemical peels, and laser hair removal.

Additionally, medspas sell medical-grade skincare products to further enhance the benefits of the procedures offered. Owning and operating a medspa can serve as a lucrative source of income for prospective entrepreneurs—but can anyone open a medspa?

Owning a Medspa as a Non-Doctor

In most states, a doctrine known as the corporate practice of medicine is observed. The corporate practice of medicine doctrine dictates that only physicians and physician-owned companies can receive payment for medical services. Because the majority of the treatments offered at medical spas are considered medical treatments, the ownership of medspas is governed by the corporate practice of medicine.

If you’re interested in owning a medspa, enrolling in a medical program can prepare you for a career in the medspa industry. Career training schools like Prism Career Institute offer a wide range of medical programs in multiple fields. Whether you’re interested in specializing in aesthetic medicine or surgery, Prism Career Institute can prepare you for a strong, successful career in medical aesthetics.

Entrepreneurs interested in breaking into the medical aesthetic industry and live in states that observe the corporate practice of medicine can also set up an MSO. An MSO, which provides management services, partners with physician-owned companies to provide medical services. The arrangement, referred to as a management services agreement (MSA), allows non-doctors to supervise most aspects of medspas, including branding, marketing, real estate ownership, billing, and human resources. However, under the MSA, non-doctors cannot oversee medical services.

How do MSO’s work?

If you’re considering opening a medspa, it may be helpful to think of an MSA as a lessor/lessee agreement in which the MSO is the landlord the physician is the tenant. In other words, the physician pays the MSO “rent” to perform medical services in the space, and the MSO maintains the space.

However, unlike apartment rentals governed by leases that outline a specific amount of money paid by the occupant for a fixed term, the amount paid to the MSO varies according to the amount of business conducted by the physician. If the physician performs more medical services in a month than in the previous month, the MSO makes more money. An MSA can help create a strong relationship between the physician and the MSO—if one side of the business succeeds, the other side also profits.

The MSA also contractually separates the physician and MSO, which helps mitigate risk between both parties. When entering an MSA, a physician’s risk is minimal. The MSA may seem heavily weighted in the physician’s favor, but the physician pays the MSO to balance the risk. Additionally, the MSO is not responsible for liability claims against the physician.

Owning a Successful Medspa

To run a successful medspa, medical spa owners should focus on hiring knowledgeable medical professionals who are good at selling, understand the medical aesthetics business, and who believe in the treatments they’re offering. Profitable medical practices must be able to turn its staff into a high-performing team and successfully convert customer interest into sales.

To stand out from the competition, medspa owners also need to invest in high-quality medical equipment. If you’re starting out on a budget, the Cosmetic Laser Warehouse sells high-quality used medical aesthetic lasers. For example, the Cutera Xeo platform, one of the most versatile and adaptive all-in-one aesthetic platforms on the market today, offers a wide range of combination treatments to meet customer demand and provide a larger treatment selection than standalone consoles.

If you’re not a licensed medical professional, opening your own medspa may require working with a reputable physician or enrolling in medical school. Ultimately, entering an MSA or working toward your medical degree can help you open a successful medspa that is efficient, legally compliant, and profitable.