By Connor B. Breza, Esq.

In recent years, the establishment of “medi-spas” has boomed in popularity across the State of New Jersey, with professionals such as physicians, nurses, cosmetologists, and unlicensed businesspersons eager to own and operate their own medi-spas. Despite unclear guidance and regulations from the New Jersey Division of Consumer Affairs (DCA) and state professional licensure Boards, such as the Board of Medical Examiners, these facilities tout attractive and lucrative treatments, including Botox injections, dermal fillers, laser skin therapies, microneedling, and IV hydration and infusion therapies.  Due to the absence of clarity from the DCA and State licensure Boards with respect to the permissible performance of these treatments, many medi-spas and practitioners find themselves operating in what often seems to be a grey area that risks regulatory non-compliance and may result in severe consequences down the line.

However, despite the unclear guidance and lack of updated regulations to address this growing industry, one fact is clearly established: each of these aforementioned treatments are regulated in the State of New Jersey as the practice of medicine under the purview of the Board of Medical Examiners.  Accordingly, not only are there restrictions on who may perform such services, there is a clear prohibition on ownership of medi-spas outside of licensed physicians and certain closely allied healthcare professionals who may be partnered with them in a professional medical practice setting under the regulations that comprise New Jersey’s Corporate Practice of Medicine doctrine (CPOM).  Additionally, an alternative option of forming a medi-spa for non-physicians is to obtain an ambulatory care license from the New Jersey Department of Health. However, this alternative may prove to be a potentially less desirable method overall due to the expense and more cumbersome nature of regulated healthcare facilities. 

The lack of clarity in who may perform many of these medi-spa treatments has left many non-physician practitioners, such as nurse practitioners, registered nurses, and cosmetologists, in a precarious position where they may be performing treatments outside of their scopes of practice, or without the proper delegation and supervision by a physician, and in violation of New Jersey law. Similarly, many non-physicians with an interest in opening a medi-spa do not fully appreciate the scope of the regulations involved from the outset of engaging in the endeavor and may find themselves in violation of the State’s CPOM prohibition.  For those outside of licensed physicians and those certain closely allied healthcare professionals who may affiliate with them, involvement in the management and operations of a medi-spa may require additional steps to ensure they do not run afoul of New Jersey’s CPOM doctrine, such as the formation and operation of a management and administrative services organization (MSO) that is engaged by the physician-owned medi-spa in a non-clinical, administrative capacity and is able to charge the medi-spa a management fee in accordance with State and Federal law.

Navigating the many pitfalls of this rapidly growing industry should not be taken lightly.  Improper ownership of a medi-spa and delivery of the healthcare services involved carry significant liability on both licensees and non-licensed persons.  Operating a medi-spa can be a lucrative endeavor but it is important that it is done in compliance with applicable law and that the risks are properly understood and considered from the outset.     

If you currently own or are planning to form or invest in a medi-spa and are seeking counsel for proceeding in a compliant manner, contact Connor B. Breza, Esq. at CBB@spsk.com or 973-798-4957 for more information.