Becoming a Medical Director at MedSpa requires careful planning and legal compliance to ensure a successful and risk-free business. MedSpas operate at the intersection of medical and cosmetic services, meaning they must comply with both medical board regulations and business laws. It’s essential to consider key factors to create a well-structured legal foundation for long-term success in the highly regulated MedSpa industry.  

Here are some things you need to know: 

1.MEDICAL SPAS MUST BE OWNED BY A PHYSICIAN 

The term “medical spa” is mostly for advertising purposes.  However, the procedures are really the practice of medicine.  Under the Moscone-Knox Professional Corporation Act and Corporate Practice of Medicine regulations, professional medical services performed under a corporate entity must be performed under a professional corporation which is at least majority owned by a licensed physician.  A medical spa owned by a lay person or majority owned by a nurse, does not work.  Additionally, the entity must also comply with the medical board’s fictious name permit requirements and the county DBA permitting requirements. 

2.IT’S ILLEGAL TO “RENT” OUT YOUR LICENSE 

California is cracking down on enforcement of Medical Spa arrangements and the California Medical Board has warned  that “a business organization that offers to provide, or provides, outpatient elective cosmetic medical procedures or treatments that is not in compliance with the ban on the corporate practice of medicine is guilty of knowingly making or causing to be made a false or fraudulent claim for payment of a health care benefit pursuant to paragraph (6) of subdivision (a) of Section 550 of the Penal Code.”  Further, although a physician does not have to be onsite, the doctor must be immediately reachable in order to satisfy the delegation of services regulations.  The California Medical Board has asked that people report violations of these requirements. 

3.MEDICAL DIRECTORSHIPS ARE SUPPOSED TO BE IN YOUR LICENSED SPECIALTY 

The general rule is that a supervising physician should be qualified and experienced enough in performing the services he or she is supposed to supervise.  For medical spas, that might be a plastic surgeon or dermatologist.  However, cosmetic procedures like Botox, filler injections, or laser treatments may not fall squarely in one particular board certification.  

4.THE MEDICAL SPA MUST ESTABLISH WRITTEN AGREEMENTS BETWEEN THE MEDICAL DIRECTOR AND PHYSICIAN ASSISTANTS, REGISTERED NURSES, OR NURSE PRACTITIONERS 

California requires medical providers who delegate services to physician assistants, registered nurses, or nurse practitioners to have written protocols and standardized procedures, complete with reference materials, established and agreed to between them.   

5.MAKE SURE YOU OR THE MEDICAL SPA HAS THE RIGHT MALPRACTICE INSURANCE COVERAGE 

The supervising physician’s malpractice insurance may need to be supplemented to cover not only the types of services you are supervising but also all allied health personnel operating under your direction. 

CONCLUSION 

Before moving forward with opening a MedSpa, a medical director must carefully evaluate the legal responsibilities involved. Given the complexities of MedSpa regulations, consulting with a knowledgeable attorney to navigate ownership structures, compliance obligations, and risk management strategies is a prudent step before launching the business. A proactive legal approach can help protect both the medical director and the MedSpa, fostering a compliant and sustainable practice.