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Understanding MSOs

Wednesday, May 10, 2017  
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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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