This episode of Compliance Deconstructed is brought to you by Jessica Zeff of Simply Compliance and features Emma Howard of Cozza Law Group. Together, they focus on medical spa compliance and Managed Service Organizations (MSOs). This episode explores how MSOs help medical spa owners navigate complex healthcare regulations and maintain legal compliance.

The conversation breaks down the corporate practice of medicine doctrine, explaining how state-specific laws impact who can own and operate a medical spa. Emma highlights how compliance structures like MSOs create a legal separation between clinical care and business operations to reduce regulatory risk.

As you consume this episode, you’ll learn how the two-entity MSO model, consisting of a physician-owned medical company and a non-clinical services company, supports compliant medical spa ownership. The episode also explains the importance of a Management Services Agreement (MSA) in defining roles, responsibilities, and financial arrangements between entities.

Jessica and Emma also discuss key compliance risks, including fee splitting, unauthorized practice of medicine, and improper operational control. This in-depth conversation provides actionable guidance for building compliant healthcare business models, improving risk management, and ensuring long-term operational success.

Key Takeaways:

• Managed Service Organizations (MSOs) enable compliant medical spa ownership in regulated states
• The corporate practice of medicine doctrine determines who can legally own medical businesses
• The two-entity structure separates clinical services from administrative operations
• Management Services Agreements (MSAs) are essential for defining compliant relationships
• Improper structuring can lead to fee splitting and unauthorized practice of medicine risks
• Legal guidance is critical when setting up and managing an MSO structure 

Learn more about Healthcare Compliance and discover how Simply Compliance can help your company at simplycomplianceconsulting.com.