Understanding MSOs

Posted By American Med Spa Association, Wednesday, May 10, 2017

Due to corporate practice of medicine doctrines, in most states the owners of facilities that perform medical procedures must be either physicians or physician-owned corporations. However, there is a path to medspa ownership by which nonphysicians can manage medspas. It is called a management service organization (MSO) and, while it still relies on the participation of a physician, it allows nonphysicians to take on a very significant role in the day-to-day operations of a medical aesthetic business.
Understanding the Law

In the U.S., most states observe a doctrine known as the corporate practice of medicine, which dictates that only a physician or physician-owned corporation can receive payment for medical services. Because many of the treatments offered at medspas are medical in nature, ownership of such facilities is governed by this doctrine.
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