Carlos H. Arce, Esq. / Chase E. Howard, Esq.
Sustaining a healthcare business in today’s medical industry calls for both ongoing innovation and quite a bit of ingenuity. The question of what can be done to enhance patient retention while keeping patients interested and loyal to a practice comes down to what is legally permissible from a compliance standpoint. A prime example of value add for an existing practice are the benefits that patients in the geriatric population are often offered, everything from cardiologists, chiropractors, physical therapists, dentists, orthopedic, pulmonologists and most recently, to med spa services.
Vendor Status
Allowing specialists to treat patients in a practice has always been a form of benefit to patients. Assuming the patients require a medical service which is medically necessary, they are treated. The obvious key is making sure it is done legally. Under the federal and state self-referral laws, it is imperative to comply with certain exceptions when entering a referral arrangement between providers. The most accurate away to ensure legal compliance when offering specialist services in apractice is via the “Rental of Office Space” exception. Space is leased to the specialist on a basis which accounts for the guidelines, the specialist provides services, the insurance pays them or the patient pays them, and the patient receives rounded care.
But can this be done for elective procedures, such as MedSpa’s? The answer is yes. Most patients 18 and over are seeking additional elective medical procedures, from IV hydration to Botox. Primary care providers may be able and qualified to perform some of these services, but consideration must be paid regarding taking on the risk of performing services which may be outside of one’s wheelhouse.
Bringing in a med spa vendor who can provide services to an existing patient base sounds like a wonderful patient retention tool. If the legal parameters surrounding this arrangement are followed, providers not only can be legally compliant, but can also add a retention benefit to their practice.
Mobile MedSpa
With the push in healthcare to make services mobile, medspa owners may be wondering how to transport the business to conduct services elsewhere. The short answer is finding the right relationship to support the opportunity. Which services could a medspa offer on a “mobile” basis? The answer is, it depends. Generally, services provided in home to patients are allowable but might require a home health agency license depending on the services. Services provided at another clinical location, such as a primary care practice, require very little in the way of licensure. Specifically, a Medspa could send its providers to another location on a limited basis to service that practice’s patients so long as the providers are properly “supervised” and the patients are properly billed. The providers could utilize the other clinic’s physician for supervision, eliminating the need for any specialty supervision as required by Florida law and could utilize extended staff for patient intake, room prep, and check out.
The biggest hurdle for this arrangement would be the compensation arrangement, which, as described above, would require strict compliance with the law to ensure no illegal referral schemes or fee-splitting occurs.
Summary
With multiple MedSpa’s and Aesthetic clinics popping up through out the country, why not considering subleasing space rather than adding that additional unnecessary overhead. Some MedSpa’s will inevitably be better off treating in their private space, but that doesn’t mean it’s the only way these added services can be accomplished.