Do You Want To Open A Med Spa in New York State? Perils and Pitfalls…

What is a Medical Spa (“Med Spa”) and who regulates them in New York State?

A Med Spa is a facility where individuals may obtain various services such as laser procedures, facials, dermal peels, vitamin infusions and IV therapy, Botox and other face fillers, cryotherapy, and prescription weight-loss medications such as GLP-Services. 

Such services generally include cosmetic or aesthetic treatments and may involve medical judgment, licensed professional supervision, or regulated clinical procedures. These services are classified as medical or non-medical based on several factors such as invasiveness, consumer risk, injection use, and the licensure required to perform them. 

Due to the strong interest in Med Spas by both businesses providing such services and their customers, the New York State Department of State has recently issued a press release concerning Med Spas: https://dos.ny.gov/news/new-york-department-state-issues-warning-consumers-after-investigations-med-spa-service. The press release noted that over 200 inspections were conducted statewide that resulted in suspensions, revocations and fines. It also noted that improper services have caused serious injuries. The message is clear: a business that is promoting itself as a Med Spa or offering Med Spa services MUST be licensed as a medical facility and licensed professionals must be performing the service. 

Medical services vs. non-medical services

There are two types of services provided by Med Spas. Some less invasive and aesthetic procedures, such as aroma therapy, body countering, hair and eyebrow services, waxing, dermal planing, and many other procedures require only an appearance enhancement license issued by the New York State Department of State.   

More invasive or higher-risk procedures, such as drug or filler injections (Botox or Restylane) whether by needle or pressure pen, cool sculpting, liposuction (lipoplasty), cryotherapy, microneedling, ear candling, laser treatments, peels (dermal), pen treatments, plasma treatments, skin tag removal, ultrasound services, vitamin therapy, IV therapy, hormone replacement therapy, and weight-management medications, are classified as medical procedures. 

Additionally, medical services can include Glucagon-like Peptide-1, GLP-1, compound or name brand weight loss drugs such as Ozempic, and hormone replacement therapy (HRT), all of which are becoming more prevalent. All of these medical services and procedures must be provided through a corporate entity owned by, and supervised by, a licensed physician, with medical services and procedures provided by appropriately licensed medical professionals.

To avoid violating New York State’s rules concerning the Corporate Practice of Medicine (“COPM”) doctrine, a physician-owned Professional Corporation (P.C.), a Professional Limited Liability Company (PLLC), or a Professional Limited Liability Partnership (PLLP) is required.  The non-physician licensed professionals that provide the medical services must do so only within their scope of practice authorized by their New York State license issued by the State Education Department.

For the provision of only non-medical services at a Med Spa, a general business corporation, a limited liability company, or limited and general partnerships are allowed.

We can assist you

Our law firm can assist those who wish to start a Med Spa and those who have already started one. For additional information, or to discuss potentially pursuing establishing a Med Spa in New York State, for a free consultation please contact David R. Ross, Esq., Shareholder, at dross@oalaw.com  or (518) 312-0167. 

Mr. Ross has been practicing New York State and federal health law for almost 30 years, and his practice areas consist of virtually all aspects of Medicare, Medicaid, and private insurance compliance, as well as professional license revocations/suspensions, regulatory compliance, civil and criminal investigations of all kinds, and health care audits and appeals.  He has served as Acting Medicaid Inspector General of the State of New York, General Counsel and Director of Audits and Investigations of the OMIG, Deputy Counsel of OASAS, an Assistant Attorney General and a Senior Assistant District Attorney. He is also the head of the Firm’s Governmental Investigations Unit. 

Associate Colin D. Green assisted in the preparation of this article.

NOTE: This article is informational only and is not intended to provide legal advice.