Watch Now
Texas, the Lone Star state, isn’t just known for being the second largest state in the US. It’s also a popular hotspot for aesthetics and is home to many med spas.
But the big question is: Who can legally own a med spa in Texas🧐
Well, it’s not as simple as signing a lease and stocking up on Botox.
There are rules regarding Texas med spa ownership — legal, federal, and state requirements that are non-negotiable. This is because most medical spas, as you know, provide services that fall under the practice of medicine.
This blog is a comprehensive guide for those wanting to know who can legally own a med spa in Texas. If you want to know more, stay until the end!
Who can own a med spa in Texas?
Under Texas law, only licensed physicians can own a med spa.
Other healthcare professionals, such as licensed nurses, are allowed to hold shares in the business or become minority partners only. This means that at least one physician must be the majority owner of med spas in Texas.
Licensed physicians
Although regulations for med spa ownership can vary from state to state, the general rule in most states is the same: only licensed physicians can own a med spa or supervise the medical services provided at a med spa.
This is to protect patients and ensure that care meets the highest standards.
While physicians may not personally perform every treatment, having qualified medical professionals is important so they can oversee who does.
This means that a licensed physician has several responsibilities to juggle daily.
- Supervise all medical procedures so they’re performed according to the highest standards of care
- Stay compliant with the state laws
- Obtain the necessary licenses for the med spa to operate legally
Medical Service Organizations (MSO)
Management Service Organizations (MSOs) offer operational and administrative support to medical practices, including spas.
They assist in managing the medical spa’s business aspect, which frees medical practitioners to concentrate on patient care and treatments. By doing that, an MSO separates a med spa into two aspects.
💡The only way non-physicians can part-own a med spa business is through an MSO, with the business structure as an LLC or PLLC to protect their personal assets. This means that non-physicians can own shares of a med spa, but at least one physician must be the majority owner.
What are the legal requirements for owning a med spa in Texas?
Owning a med spa in Texas involves navigating a mix of business and healthcare regulations to ensure compliance. Understanding these key requirements is crucial to launching and opening your practice successfully.
Physician ownership
In Texas, med spas must be owned, or at least co-owned, by a licensed physician. This is because many of the services med spas provide are classified as medical procedures.
Therefore, to comply with state regulations, Texas med spa ownership must include a licensed physician to perform or oversee these procedures.
Physician supervision
Texas law allows non-physicians to own a med spa, but a licensed physician must manage and oversee the medical aspects that are performed each day.
Non-physician owners cannot make medical decisions. It’s the job of the licensed physician who serves as the medical director of that med spa to oversee the medical treatments and ensure compliance with state standards.
Licensure and permits
Licensing requirements ensure med spa operations comply with local, state, and federal regulations. But sometimes, it’s easy to forget some those regulations. That’s why having a med spa compliance checklist is crucial. It can ensure all necessary permits and licenses are in place to operate legally and avoid fines.
The key licensing requirements and permits for opening a med spa include:
- Business License: Ensures compliance with local regulations, including taxes and zoning
- Employer Identification Number (EIN): A nine-digit number the IRS (Internal Revenue Service) uses for tax purposes
- Sales tax license: Required if you’re selling skincare products to collect sales tax, otherwise, you could face fines of up to $100,000
- Fire and Health Department permits: Ensure compliance with fire safety and sanitation regulations through inspections
- HIPAA compliance certifications: Compliance with the Health Insurance Portability and Accountability Act is mandatory for med spas because they handle protected health information (PHI) during medical treatments
- Medical director license: This is issued by the Texas Medical Board and ensures oversight of medical procedures
- Liability license: Protects against legal claims related to spa services, including negligence or malpractice
Compliance with the Medical Practice Act
The Medical Practice Act (MPA) is a state-specific law designed to protect the public from the unprofessional or unsafe practice of medicine.
It outlines what physicians and healthcare professionals can and cannot do within their scope of practice.
That’s because many med spa treatments like injectables, laser therapy, microneedling, IV therapy, and other treatments are considered medical procedures and fall under the umbrella of medical practices.
Each US state has its version of the MPA. In Texas, it’s mandated under the Texas Occupations Code. Here’s how the MPA of Texas regulates and impacts med spas:
- Licensing: It sets the requirements for who can obtain and maintain a medical license
- Scope of practice: It defines the activities that a licensed physician must perform and those that can be delegated to other healthcare providers
- Prohibition of unauthorized practice: It forbids non-licensed individuals from performing medical procedures
Employee qualifications
Most medical spas employ several kinds of healthcare professionals. In addition to licensed physicians, there are nurse practitioners (NPs), physician assistants (PAs), and estheticians.
Let’s take nurses as an example. They must be licensed to perform medical treatments such as injecting Botox, microneedling, chemical peels, etc. Their nursing license ensures they possess the essential skills and are eligible to practice safely.
To become licensed, nurses must:
✔️Graduate from an accredited nursing school
✔️Pass the NCLEX-RN exam
✔️To administer Botox injections, they must obtain an APRN license
✔️Fill an application along with a background check
Patient consent, privacy, and security
Obtaining informed consent might seem boring and repetitive, but it’s crucial for your med spa’s success, and to protect clients. It ensures clients fully understand the treatment’s benefits, risks, and outcomes.
Additionally, it guarantees their personal and medical information is securely handled in compliance with HIPAA regulations.
To meet HIPAA standards, med spas should:
🔐Implement strong data encryption: To protect patient information
🔑Set strict access controls: To limit who can view sensitive data
💾Regularly back up data: To support disaster recovery
🔍Audit logs: To track who accesses patient information and what actions are taken
Record keeping
Running a med spa means you need to collect and store personal information, known as protected health information (PHI) in HIPAA terms.
That data must be kept safe and secure at all times. Regulations like HIPAA impose strict measures on medical businesses to protect patient data.
Let’s not also forget that your clients have entrusted you with their personal information – they expect you to keep it safe. Poor record-keeping can have dire consequences for both the client and the med spa.
Some of the most prominent risks are:
- Treating a client with a treatment or product they’re allergic to
- Not being aware of other medication they may be taking
- Not meeting consent compliance audit requirements
- A costly data breach of confidential medical information
- Loss of client trust and irreversible reputation damage
Business structures for med spa ownership
Med spas are considered medical practices.
Med spa owners must meet both general business requirements and the specific regulations for owning and running such a business.
Here are the key requirements for med spa business ownership in Texas.
- For physicians: The common business structure is through professional associations (PAs) or professional limited liability companies (PLLCs), which allow physicans to operate their business while maintaining limited liability.
- For non-physicians who want to own a med spa: The only way to do it is to partner with a licensed physician, who will be responsible for overseeing all medical treatments and ensuring compliance with medical standards.
Who regulates med spas in Texas?
Several regulatory bodies apply to med spa businesses in Texas.
Here are the most prominent ones:
- The Texas Medical Board: The Texas Medical Board regulates the practice of medicine, which includes procedures commonly performed in medical spas, such as administering dermal fillers and Botox.
- The Texas Department of License and Regulation: This regulatory body issues licenses to ensure that med spas comply with safety and licensing standards to protect customers and maintain industry integrity.
- The Texas Department of State Health Services: This department exists to regulate public health and safety, including infection control, waste disposal, and facility licensing for qualified healthcare facilities.
💡To stay off the regulatory radar and avoid government scrutiny, med spas must comply with the Texas’ Corporate Practice of Medicine (CPOM) doctrine. The goal of CPOM is to ensure that medical decision-making remains in the hands of licensed physicians and is not influenced by corporate or financial interests.
Opening a med spa in Texas? Find out how Pabau can help✨
After reading all this, you might think: Wow, there’s a lot to consider before I open my med spa. But the thing is, you don’t have to do it alone.
Pabau can help!
Pabau is an all-in-one practice management software, which simplifies opening a medical spa by providing the tools that all medical spas need.
Our software is designed to handle the heavy lifting out of daily med spa tasks, helping you:
✅Manage client records safely and securely
✅Streamline taking bookings appointment scheduling
✅Send out intake forms automatically before every appointment
✅Store patient data, medical history, treatment records, and before-and-after photos safely and securely, while meeting HIPAA regulations
✅And much, much more…
Ready to take the plunge? Book a demo today and see how you can smoothly run your med spa in Texas with Pabau!
