
Legal
New California Law Affects MSOs
A newly passed law in California will prohibit certain contractual provisions between medical and dental practices and private equity groups ...
Posted By Mike Meyer, Tuesday, May 7, 2019
By Brad Adatto, JD, Partner, ByrdAdatto
"Alternative medicine," "wellness treatments" and "anti-aging procedures" all have one element in common: Each has treatments and procedures that fall within the practice of medicine. Most states' statutory definition of 'the practice of medicine' includes any diagnosis, treatment or offer to treat a physical disease, disorder, deformity or injury by any system or method. Further, anytime the outermost layer of the epidermis is penetrated—whether by injection, abrasion or incision—the procedure is considered a medical treatment.
As such, treatments or therapy that include hormone replacement, stem cell and ozone administration are considered the practice of medicine. This limits who can actually perform these procedures and where these procedures can be performed. Over the years, we have had many individuals that choose to either ignore this advice or push back on this explanation, asking, "How is everyone else doing it?" As more individuals open "alternative medicine facilities," "wellness clinics" and "anti-aging centers," we have seen an increase in enforcement from state agencies, medical boards and law enforcement. Therefore, businesses must be extremely careful when navigating state laws regulating the practice of medicine, including anti-aging therapies. Here's what you need to know.
Brad Adatto, JD, is a partner at ByrdAdatto, a business, healthcare, and aesthetic law firm that practices across the country. He has worked with physicians, physician groups, and other medical service providers in developing ambulatory surgical centers, in-office and freestanding ancillary service facilities, and other medical joint ventures. He regularly counsels clients with respect to federal and state health care regulations that impact investments, transactions, and contract terms, including Medicare fraud and abuse, anti-trust, anti-kickback, anti-referral, and private securities laws.
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