Professional Background
Elissa’s path to medical spa law was influenced by her family background – as the daughter of a nurse who later became a head nurse at major Houston hospitals and started her own home health agency. This exposure to healthcare led her to pursue a master’s in healthcare administration and a certificate in health and hospital law, providing her with the educational foundation to effectively advise clients.
Medical Spa Law Distinctions
While medical spas may appear fun on the surface – with Botox parties and IV hydration treatments – they carry significant medical risks that consumers may not recognize. The field requires expertise in healthcare law, including understanding of Stark laws, anti-kickback regulations, HIPAA compliance, and CMS guidelines. Without proper legal guidance, both businesses and individuals face potential civil and criminal liabilities.
Common Challenges and Setup Requirements
One major challenge is proper business structure. Many assume having a medical director is sufficient, but the requirements are more complex. In Texas, under the corporate practice of medicine doctrine, medical spas must be majority-owned by a physician. This creates a specific hierarchy where nurses cannot hire physicians, and proper documentation through operating agreements is essential to delineate ownership and responsibilities.
Business Structure and Contracts
Non-medical investors can participate through Management Service Organizations (MSOs), which handle administrative functions while the medical spa manages clinical aspects. Physicians require separate agreements for each role they perform – whether as owners, medical directors, or collaborating physicians. These contracts cannot be consolidated and must be properly structured to ensure compliance.
Compliance and Risk Management
Compliance remains crucial regardless of payment methods. Even cash-only practices must follow HIPAA and CMS guidelines. Working with a healthcare attorney helps establish proper frameworks to handle complaints and maintain ongoing compliance. The goal is to stay well within regulatory boundaries while making informed decisions about business risks.
Future Industry Outlook
The medical spa industry is likely to face increased regulation in the coming years. While Texas currently lacks a specific governing body for medical spas, future legislation may implement more stringent oversight. Medical spa owners should maintain relationships with healthcare attorneys to stay informed about regulatory changes and prepare for evolving requirements.
