Can a management company run the business side of a med spa in Indiana?
Ownership · part of The Practice Perimeter
Indiana’s employment safe harbor is not general — it names the entities it covers, and a lay-owned company is not one of them. “An employment or other contractual relationship between an entity described in subsection (a)(21) through (a)(22) and a licensed physician does not constitute the unlawful practice of medicine or osteopathic medicine under this article if the entity does not direct or control independent medical acts, decisions, or judgment of the licensed physician.” Subsection (a)(21) is “A hospital licensed under IC 16-21 or IC 12-25”, and (a)(22) is “A health care organization whose members, shareholders, or partners are individuals, partnerships, corporations, facilities, or institutions licensed or legally authorized by this state to provide health care or professional services as” a physician, a psychiatric hospital, a hospital, a health maintenance organization, a health facility, a dentist, a registered or licensed practical nurse, a midwife, an optometrist, a podiatrist, a chiropractor, a physical therapist or a psychologist. The no-control condition is a SECOND requirement on those entities, not a route for any other kind of owner.
Ind. Code §25-22.5-1-2(c) · verified Jul 26, 2026 · regulatory monitoring, not legal advice
The rest of what Indiana says on this
Indiana’s standards-of-practice chapter was surveyed and contains no fee-division ground. ic 25-1-9 is the chapter that supplies the grounds for disciplining a health practitioner, and it contains no prohibition on dividing or sharing a professional fee, and no use of “rebate”, “kickback” or “remuneration”. An absence in this chapter, not in Indiana law as a whole.
Ind. Code ch. 25-1-9 (Health Professions Standards of Practice), read in full · verified Sep 2, 2026
Indiana closes the cap table of a professional corporation to four kinds of holder, and a lay investor is not among them. Except as provided in IC 25-2.1-5, “a professional corporation may issue shares, fractional shares, and rights or options to purchase shares only to: (1) individuals who are authorized by Indiana law or the laws of another state to render a professional service permitted by the articles of incorporation of the corporation; (2) general partnerships in which all the partners are authorized by Indiana law or the laws of another state to render a professional service permitted by the articles of incorporation of the corporation; (3) professional corporations authorized by Indiana law or the laws of another state to render a professional service permitted by the articles of incorporation of the corporation; and (4) the trustee of a qualified trust.” A licensing authority may by rule further restrict, condition or abridge that authority where necessary to prevent violations of the profession’s ethical standards.
Ind. Code § 23-1.5-3-1(a)-(b) (Professional corporations — shares; issuance; transfer) · verified Sep 8, 2026
How other states answer this
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← All Indiana rules and changes · MedSpaRadar is regulatory monitoring and reference: it summarizes public laws, regulations and agency actions and links each to its source. It is not legal, medical, or compliance advice, and using it creates no attorney-client relationship. A summary can lag its source or leave out detail, and monitoring itself can be interrupted — so an absence of alerts means nothing reached you, not that nothing happened. Read the cited source, check its effective date, and confirm any change to your operations or clinical practice with qualified health-law counsel and your medical director. Legislative data via LegiScan (CC BY 4.0).