# Nevada MedSpa Business Facts

## Executive Summary
Nevada requires strict adherence to Corporate Practice of Medicine rules, meaning lay entrepreneurs must utilize MSO models. However, the largest recent hurdle for Nevada MedSpas is digital compliance regarding marketing data. Nevada SB370 imposes severe restrictions on how MedSpas handle consumer health data, mirroring Washington's massive privacy constraints.

**Difficulty Rating:** Hard

## 1. Ownership Rules & CPOM
- **The Core Rule:** Nevada strictly enforces the Corporate Practice of Medicine (CPOM). Under state law (NRS Chapter 89), non-physicians are prohibited from owning a medical practice or employing physicians to practice medicine.
- **Corporate Structures:** A MedSpa offering medical aesthetic services must legally operate as a Professional Corporation (PC) or a Professional Limited Liability Company (PLLC) owned exclusively by a Nevada-licensed physician (or permitted combinations of licensed healthcare providers).
- **The MSO Model:** Entrepreneurs, marketers, and business managers who are not physicians must utilize the Management Services Organization (MSO) model. The MSO provides the commercial infrastructure and contracts with the physician-owned PLLC via a Management Services Agreement (MSA).
- **Fee-Splitting Prohibitions:** The MSO cannot be paid a direct percentage of the medical clinic’s revenue derived from patient care. Management fees must be established at a fair market value (FMV) flat rate or a cost-plus model to avoid violating Nevada anti-kickback statutes.

## 2. Everyday Clinical Operations & Delegation
- **Medical Director:** Must be an active, licensed NV physician (MD or DO) associated with the Professional Corporation.
- **Laser Operations:** Firing a medical-grade laser or IPL alters human tissue and is the practice of medicine. Physicians can delegate laser treatments to trained personnel. However, the physician MUST examine the patient first to issue the order, and must remain available to provide adequate supervision as defined by the Board of Medical Examiners.
- **Injectables:** The administration of Botox and dermal fillers is strictly the practice of medicine. Physicians may delegate injections to an RN or PA under standing orders following an initial Good Faith Exam. **Delegation of neurotoxins or dermal fillers to unlicensed medical assistants or estheticians is highly scrutinized and prohibited.**

## 3. Key Challenges & Common Pitfalls
- **SB370 Marketing Violations:** The biggest risk for MSOs managing Nevada MedSpas is failing to comply with SB370. Running Meta or Google ads utilizing "consumer health data" without strict opt-in consent, or failing to offer a distinct Consumer Health Data Privacy Policy, exposes the MSO to massive legal liability.
- **NPICICA Sale Limits:** Failing to provide a clear "Do Not Sell My Personal Information" mechanism on the website for Nevada consumers.
- **Improper Esthetician Delegation:** Allowing an esthetician to inject dermal fillers or fire lasers without the direct order, examination, and immediate supervision protocols of the Medical Director fully satisfied.
- **Improper MSO Structure:** Drafting an MSO agreement where the non-physician exercises "clinical control" over the Medical Director's professional practice.

## 4. Timeline & Costs
- **Legal Setup:** Proper MSO agreements, professional entity formation, and drafting the mandatory cybersecurity and SB370 consumer health privacy protocols take time. Expect 3 to 6 months to establish the complete legal framework.
- **Costs:** Legal setup fees for establishing the MSO, PC structure, and ensuring digital privacy compliance typically range from $10,000 to $18,000.