Bill Name: House Bill 1249 (HB 1249) 

Primary Sponsor: Rep. Ryan Gonzalez, Rep. Naquetta Ricks

Status: 3/18/2026 House Committee on Health & Human Services meeting for consideration

AmSpa’s Take: Many states restrict non-physician ownership of medical practices. There has been a long running trend toward loosening these restrictions or creating exemptions to account for the evolving practice of medicine. Many states no longer restrict ownership or employment provided the physician is free to exercise their professional judgment on patient care and clinical decision making. 

Analysis: Currently, Colorado has a statutory prohibition on general business entities from employing physicians. The ownership of medical practices is limited to licensed physicians with physician assistant (PA) able to hold a minority interest.  If passed, HB 1249 would create a special type of medical aesthetic professional corporation which would have expanded ownership options.

Under HB 1249 traditional medical practices would still be subject to the same ownership restrictions. However, if the entity was created for the sole purpose of providing medical-aesthetic services then additional licensed persons may have an ownership stake. These include estheticians, cosmetologists, registered nurses, licensed practical nurses, advanced practice registered nurses, and PAs. There is no restriction on maximum or minimum ownership percentages. 

This bill is unusual in that it does not include any definition of what constitutes a medical-aesthetic service. There is a definition as part of a medical board administrative rule, but this definition is meant to define what is part of the practice of medicine and give delegation guidance. For instance, it isn’t clear if areas like IV therapy or weight management would fall within this definition. Administrative rules can also be more easily changed, leading to potential issues for entities that may have qualified under an older definition. It is possible that future amendments to this bill may shed more light on what type of practices qualify for these expanded ownership rules. If you would like additional information, to read the language of the bill or to contact the sponsors or committee, you can find the information you need through this link: HB 1249.