On January 8, 2026, the New York Department of State announced the results of a statewide inspection of over 220 medical spa (“med spa”) businesses that offer medical and medical-related procedures, including the injection of fillers and intravenous infusions.
Eighty-seven of the inspected businesses were cited for potential violations, which included the unlawful practice of medicine by non-physicians. Many of these inspections are still pending final resolution; however, several inspections resulted in businesses receiving fines and/or the suspension or revocation of licenses for both med spas and practitioners.
The Department of State noted that the inspection of med spa businesses will remain a part of its annual inspection program and has issued guidance to consumers regarding med spa businesses. To comply with New York law, only duly licensed or certified individuals should be performing certain services, under appropriate supervision if required, and the services need to be provided through the appropriate type of business, such as, in many instances, professional corporations or professional limited liability companies owned by physicians or properly credentialed nurse practitioners.
The type of business that needs to be used, and whether the business needs to be owned by a physician or nurse practitioner, depends in part on whether services are classified as beauty enhancement services, and on whether services are deemed to be medical in nature. Whether a particular service is considered medical in nature is also subject to significant governmental scrutiny.
Additionally, business entities are required to obtain appropriate licenses and registrations, depending on the type of services being provided. For example, spa businesses that are non-medical in nature may be required to obtain beauty enhancement facility licenses, while medical services may only be provided by professional businesses that are authorized to provide medical services and are owned by licensed physicians or properly credentialed nurse practitioners.
Business arrangements involving med spas often include the provision of non-professional administrative services to a med spa by a management company (often referred to as an “MSO”) that is not owned by professionals. While an MSO may be permitted to provide administrative and other non-clinical and non-professional services to med spas, these arrangements are subject to many legal requirements, including state and federal laws relating to the corporate practice of medicine, fee splitting and patient referrals.
Healthcare practitioners, beauty enhancement personnel, and others involved in the ownership and operation of med spas should be aware of the complex web of applicable legal requirements, and should consult with qualified legal, accounting and other professionals in structuring their businesses and relationships. This is especially true considering the recent and ongoing governmental scrutiny of the industry.
We continually monitor these issues and other regulatory issues in the healthcare industry. Should you need the assistance of experienced counsel to assist you with med spa-related issues, do not hesitate to contact Keith James at (516) 751-6537 or [email protected].
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