In this episode of the Well Kept Podcast, we dive into the intricate and fast-evolving world of med spas and wellness practice ownership. We speak with Justin Marti, an attorney specializing in healthcare, to talk about the complexities of legal compliance and business success. Whether you’re a clinician aiming to innovate or a nurse practitioner dreaming of your own practice, understanding the legal landscape is crucial to your success.

Listen to this episode of the Well Kept podcast!

Show Notes

In this episode of the Well Kept Podcast, hosts Carmen Stansbury and Jackie Giannelli, both board-certified nurse practitioners, engage in an in-depth discussion with Justin Marti, a specialized healthcare attorney. They delve into the complexities of owning and operating healthcare practices, focusing on legal challenges like the formation of Management Services Organizations (MSOs), compliance with state regulations, and structuring compensation plans. Justin shares his journey from running a dental MSO to specializing in medical aesthetics and wellness law. The conversation covers key aspects such as the importance of good faith exams, medical director involvement, and the necessity of strong consent forms. Justin also discusses scenarios where MSO formation is beneficial and provides insights on how to plan with the end in mind for practice scalability and potential exit strategies. This episode is a must-listen for clinicians, practice owners, and aspiring entrepreneurs in the healthcare and wellness space.

• 00:00 Introduction to the Well Kept Podcast
• 01:24 Guest Introduction: Meet Justin, the Accidental Attorney
• 04:59 Understanding MSOs and CPOM
• 09:25 Key Compliance Steps for New Practices
• 17:54 Compensation Compliance and Commission Structures
• 24:51 Navigating Coaching and Telehealth Regulations
• 27:14 Scaling Your Practice with MSOs
• 31:06 Final Tips and Closing Remarks

Understanding the Legal Structures and Complexities of Starting a Med Spa

Our discussion kicked off with an insightful conversation about Management Services Organizations (MSOs) and the corporate practice of medicine (CPOM). Justin broke down these often confusing terms, explaining that an MSO can support clinical practices by handling administrative tasks, thereby freeing up healthcare providers to focus on patient care. Furthermore, he highlighted the importance of navigating state-specific regulations, as CPOM laws differ significantly across the U.S., often dictating who can own and manage these practices.

Key Compliance Factors for New Practices

The discussion covered critical compliance factors necessary for setting up a med spa:

1. Medical Direction: Ensuring a qualified medical director is involved in the practice is essential. This director must be actively engaged, as regulations and oversight can vary by state, potentially requiring their physical presence or involvement in patient care decisions.
2. Good Faith Exams (GFEs): These are crucial for establishing patient-provider relationships and ensuring the safety and suitability of treatments offered. GFEs involve thorough medical history reviews, screenings, and informed consent processes.
3. Scope of Practice: It’s vital to understand what each level of provider is legally allowed to do in your state. Justin emphasized ongoing education to keep up with changing regulations.
4. Consent Forms: Having robust consent forms in place protects both the provider and the patient, clearly outlining risks and contraindications.

Compensation and Commission Structures

Compensation compliance emerged as a significant issue, as varying state rules can complicate performance-based pay structures. Justin explained the concept of fee-splitting and the importance of establishing legal and compliant methods of compensating employees, avoiding true percentages of revenue, and focusing instead on structured tiers or performance indicators.

The Importance of Legal Counsel and Planning

Justin stressed the importance of consulting with a legal team experienced in healthcare and state-specific regulations before establishing your business structure. Often, businesses start excitedly, only to learn later they need restructuring to comply with regulations, which can be costly and complex.

Planning for Growth and Exit Strategies

As practices grow, establishing an MSO can streamline operations, create value for potential transactions, and present a well-organized, scalable business. Planning with the end in mind, whether that involves expansion or preparing for a profitable exit, ensures sustained success.

Final Thoughts

Early and informed legal planning is pivotal. Investing in the right professional guidance saves time, money, and potential legal troubles down the line. For those considering starting a med spa or wellness practice, Justin’s insights underscore the need to be proactive about legal compliance and thorough planning.

For more information or legal assistance, you can reach Justin at Marti Law Group, where they offer comprehensive support and even a membership program for aesthetic practice owners. Check out their resources to ensure your practice thrives in today’s dynamic regulatory landscape.