Medical spas are becoming hugely popular and the US market is expected to grow by $31.5 billion by 2025. This is no surprise considering more people are prepared to invest their money regularly into looking better and younger. The med spa is the place they can feel safe and reassured results will be delivered to help them achieve the look they want.
So, as someone who is potentially looking to open and run a highly profitable med spa, how can you go from where you are now to becoming one of the most successful spas not only locally in your region, but in your state? Do you have the vision? Are you able to visualize yourself running one of the top highly recommended spas in your area? Create a business plan outlining your aims, objectives and strategies as well as the goals and profits you wish to achieve in the short term months and long term year by year. The plan should outline every single detail from legal advice to what products you will need to purchase to run your business.
Firstly, it’s imperative to understand the licensing requirements around opening a spa.
Do I Need a License to Open a Spa?
Yes you do need a license, however the type of license you need will also depend on:
- Which state you open your business in (as this can vary from state to state)
- What treatments you make available at your spa
State Licensing Laws
As we mentioned above, the licensing laws vary hugely from state to state. In Florida, there is no requirement for a medical qualification if you are looking to open your own medical spa. Whereas, in California, the law states you cannot open a medical spa without a licensed physician who must be a majority shareholder in your company. The latter makes complete sense to ensure only qualified physicians are performing highly complicated procedures.
So, do your research first for the state you are looking to open your spa in. Receiving legal advice is highly recommended before you open your new business, so engage a lawyer to help you navigate the federal, state and local regulations.
Types of Treatments
If you are looking to open a spa that offers aesthetic filler treatments, then you must adhere to the regulations for medical practices. Put simply, a medical license is required to open and run a medical spa, in which case either you are a licensed physician or in partnership with a licensed physician.
If you are looking to grow your company slowly, then you will want to hire licensed practitioners who also hold qualifications in administering aesthetic treatments.
Once you have all the correct licenses in place, you can start thinking about your business name.
Business Name and Branding
Create a detailed marketing plan. Take a look at the different medical spa brands already out there. What sets them apart? What do you notice about the ones that seem to be getting all the attention?
It’s important to get your business name right from the beginning so that clients will easily remember you and easily recommend you to others. Often simple and timeless names and design are key. Your business brand should really reflect everything your business is able to offer.
You may want to work with a branding agency that can help you create a logo and easy to navigate website. Your website will play a hugely important role in attracting and securing business. Ensure it is informative, setting out all the treatment types you have to offer, as well as being a smart tool for clients to easily book appointments online.
Do I need a permit?
Once you have the licenses and branding in place, you will need to consider the location of where your spa address. You will then need to register the business as either a sole-proprietorship, partnership, or limited liability company and apply for a permit.
It is also recommended to have a liability insurance policy in place to protect your business against damages like fire, floods, hurricanes, theft, and other unforeseen events.
If your employees and staff are not self-insured, then you will need to get worker’s compensation insurance to protect yourself.
Also remember, only a licensed physician can accept payments for any medical treatments. So you will need to get legal advice on setting up a separate, physician-owned organization known as a managed services organization, or “MSO”. Your legal aid can help you draft a contractual agreement outlining the day-to-day management of the medical spa. The physician then won’t need to be in the office everyday, but will need to:
- oversee all medical decisions;
- hire medical personnel; and
- ensure employees performing medical treatments have the appropriate medical training.
Having the correct licenses, legal advice, physician and shareholders as well as insurances and documentation policies, such as health and safety plans, will enable you to legally operate and manage your medical spa business.
Here is a concise guide to the legal side of opening a medical spa:
Business entity: Your medical spa will need to be a sole-proprietorship, partnership, S-corp or C-corp. Establish this entity and claim your federal tax employer identification number (EIN).
Set up protocols and SOPs: Refer to your federal and state rules to determine the standard of care required to provide the medical and cosmetic treatments you are offering. Work with a legal counsel to outline the appropriate protocols for each treatment and procedure.
Establish patient forms and informed consents: In all medical settings, informed consents are critical for patient safety and liability. They provide your patients with the information they need to make informed decisions about the treatments your medical spa will provide.
Get OSHA forms: The Occupational Safety and Health Administration (OSHA) regulates workplace safety and health, which is critical in a medical environment. Maintain the safety of your employees and your patients by following the federal and state rules.
Establish policies: Your medical spa will need a plan for biohazards, patient privacy, hygiene, equipment operation, medication handling and storage, risk management, disinfection, incident reporting and more. Speak with your legal counsel to make sure you have all the policies required by your state and federal government.
Develop health and safety plans: The health and safety of your patients and staff rely on your practice developing a thorough cleaning and disinfection plan and health and safety plans for your patients and staff. Refer to your legal counsel for federal and state rules that apply to these plans.
Obtain licenses and permits: Most states require a medical spa to be owned by an individual with a medical license. Consult with your legal counsel for those requirements, and secure the necessary permits to run a medical facility.
Create an MSA and an MSO: If you are not a physician and your state requires a medical spa to be owned by a physician, you will need to set up a management services organization (MSO) and form a relationship with a physician; this relationship is formalized with a management services agreement (MSA).
Hiring a medical director with a license and qualified medical staff enables your medical spa practice to treat patients safely and within regulations. Make sure you find a practitioner with a broad scope of practice who is trained to perform each type of treatment you wish to provide. It is their role to provide supervision and delegate medical procedures.
Funding and Equipment
Securing capital will be the biggest priority to give your medical spa a kickstart. Whether you have savings ready to invest, or help from family or a business partner, you will need sufficient funds to open your medical spa.
To perform the aesthetic treatments in your spa, you will need to invest in products and equipment. Ensure you have these in stock before you open. Purchasing FDA approved fillers from Foxy Fillers at affordable rates with great deals and discounts, means you can rely on easy shipping of dermal fillers as and when you require them for your patients. Foxy Fillers are a reputable brand that ship reputable brands such as Juvederm and Restylane. Free international shipping is also available on orders over $1000
Hiring trained staff is a huge advantage from the word Go, however you will need to ensure you keep their training up to date and in line with the treatments you wish to offer your patients. With new products being released yearly, there is always scope for new training programs.
Ensuring your trained staff only provide treatments within their license, protects your business liability, their personal liability and your patient’s safety.