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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 118722
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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In what way can a non physician structure a business with a

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In what way can a non physician structure a business with a medical director and actually own a medspa in Illinois? There are so many non physician owned medspas in Illinois so what is the structure that makes them compliant? I am aware of the fee splitting issue and I am told that the doc can hire my business as a management company but that doesn't make me the owner. Also, I am an esthetician who will be performing such treatments like laser hair removal deligated by the medical director.
Submitted: 5 years ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 5 years ago.
While there may be medical spas owned by non-physicians in Illinois, the Illinois law prohibits the non-physician ownership of such spas and they do shut them down as they find them. However, one structure that would require you to get a local attorney to set up with contracts is the concept where you would open a spa whereby you perform the care and non-medical treatments you are licensed to perform and you have a lease agreement and independent contractor agreement for the treatments that require a doctor to perform and the doctor pays rent and receives payment for the medical procedures he performs. This is a technical way to set up this type of business and will require you to have a local attorney set it up and draft the contractual agreements and this is referred to as a "Mall" type set up.

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Customer: replied 5 years ago.
As for now, I work as an employee for a doc doing laser treatments which is outside the realm of my esthetics license..making me an assistant to the doc if I am operating. Under the new arrangement, I want to work for myself, pay for the insurance that covers me under the medical director and that's all. Maybe accept a small rent from the doc when he uses my room to see his own patients. Are you saying that it is possible for me to perform treatments, being an "assistant" to the doc and have my own business if it is properly structured? Or does the doc have to have 100% ownership? What if the doc hires my business to manage (with no pay) and my business employs me to to the treatments?
Expert:  Law Educator, Esq. replied 5 years ago.
Your idea is a possibility but you need to be careful since the state has been cracking down on these types of clinics and arrangements. It is possible for you to own a "medical mall" type business where you rent space to the doctor to perform any tasks that are considered medical treatments and this is a valid business set up. But owning the business and hiring a medical director really is not the proper way to do this.
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