Looking to Start a Medical Spa in Illinois?

Entrepreneurs across the country are ready to provide the best care that makes clients happier with their looks. If you found this article, you likely already have the skills and abilities to get that done. In some ways, you have already accomplished the hard part, but the foundational part to enjoying the fruits of that hard work is actually opening that medical spa!

As a medical practice, medical spas are subject to national and state-level rules and regulations that keep patients and practitioners alike safe from profiteering, and malpractice, amongst other worries. Most of those fall under the corporate practice of Medicine Doctrine, but there’s plenty more to mind when opening a medical spa.

In this article, we will go over a list of topics we feel are important for you to consider as a precursor to opening a medical spa. This is not an exhaustive list but should give you a good understanding of important considerations when mapping out how your medical spa should run.

Medicine Doctrine

Illinois observes the practice of “Medicine Doctrine,” meaning a physician must be the owner or majority owner of a Medical Corporation or LLC treating patients. Physicians must be either administrating or supervising the administration of various medical spa treatments such as Botox, chemical peels, collagen injections, colonics, liposuction, microdermabrasion, and dermaplaning, amongst other procedures.

The thought process behind this is that a typical corporation or business’ main goal is to make a profit. On the other hand, the practice of medicine prioritizes patient care. While there can be an overlap in goals, the doctrine seeks to protect patients from an environment where their care isn’t the most important priority. 

Business Entity

Choosing an entity should be informed by your current business strategy, in conjunction with your vision for the company for the future. The choice of entity can affect tax structure, capital raising, initial public offerings, mergers and acquisitions, and distribution structure. Most often, LLCs, and their professional counterparts, PLLCs, are the most commonly formed entities for these purposes. An LLC is flexible and can be customized to different business models, while also leaving open a menu of tax options. In circling back to the strategy and vision considerations, the LLC's flexibility tends to be a great starting point when the vision for the business is uncertain. Once you establish the entity you then claim your federal tax employer identification number (EIN).

The Statutory Role of Physicians

As explained above, a physician must be the owner or majority owner of a Medical Corporation or LLC treating patients. Of course, if you are a physician yourself, this doesn’t complicate the formation and business plan of creating a Medical Spa company. If you are not a physician, this rule clearly requires some additional considerations.

Medical care at a medical spa must be provided under a licensed physician’s supervision and oversight. Under the Illinois Medical Practice Act, physicians may delegate medical treatments to an appropriately trained and experienced healthcare professional provided the physician is available for consultation or collaboration. So if you are not a physician, as long as one is available and oversees the care administered, there is no issue with statutory provisions. 

How a medical spa is advertised should be carefully considered, particularly if the spa works in conjunction with a non-medical business, such as a hair salon. As an example, a hair salon may not hold out the physician who owns or works in the medical spa as an employee or agent of the hair salon. With the current trend toward cross marketing, this is an often overlooked area and physicians are prudent to seek legal advice regarding this issue.

Insurance Coverage

As you are aware, medical spa treatments often require a high level of expertise, exposing providers to major risks when issues arise. Because providers work with technologies that alter physical appearances and have the potential to cause a variety of adverse effects, protecting a medical spa with the right type of malpractice insurance is essential to the health of the business.

Medical spas provide a variety of non-invasive aesthetic medical services in a day spa setting by qualified practitioners with onsite supervision by a licensed healthcare professional.

The typical limits of liability on medical spa professional liability policies are $1,000,000 per claim and $3,000,000 annual aggregate; however, excess limits are available based on the needs of the particular spa. Medical malpractice insurance rates for medical spas vary greatly by a number of unique factors, including claims history, the number and type of staff employed, the nature and location of the business, the number of locations, and the types of services provided. Claims-made estimates are for informational purposes only.

Target Your Ideal Location

The neighborhoods you consider should be convenient for your clients. The shorter travel times the better, especially when considering them leaving the establishment after treatment. Do you want to be in a business district so you can service nearby clients? Do you want to be in a more suburban area based on your anticipated clientele? Do you complement a business near your own, like a gym?

A typical medical spa is between 2,500 and 3,000 square feet of space. You need enough space for your equipment, treatment areas, and retail space. Convenience and visibility to your target market are key.

Establish Your Social Media Presence

Claim your domain name as soon as you solidify your business identity. Work to create a website that is attractive and easy to navigate, then build your social media accounts and link them back to the website.

Social media platforms such as Facebook and Instagram are another great opportunity to reach new patients and foster a thriving community within your patient base. We all recognize that in the digital age we live in, it's best to utilize it and invest time and effort in presenting your best foot forward to clients.

If you are considering opening a medical spa or have one already and have questions concerning this topic, please reach out to the attorneys at Lavelle Law at 847-705-7555, or email Attorney Eso Akunne at eakunne@lavellelaw.com to schedule your free and confidential consultation.