Can private equity invest in a med spa in Minnesota?

The rest of what Minnesota says on this

Every other rule we have verified under ownership & corporate practice of medicine, each linked to its primary source.

• ⚠️ MINNESOTA NAMES THE MED SPA BUSINESS MODEL AS FEE SPLITTING. “FEE SPLITTING” is unprofessional conduct “including without limitation … (4) DISPENSING FOR PROFIT ANY DRUG OR DEVICE, UNLESS THE PHYSICIAN HAS DISCLOSED THE PHYSICIAN’S OWN PROFIT INTEREST.” Selling a drug or a device at a mark-up is inside the fee-splitting ground unless the profit interest is disclosed — which is a different and larger duty than the § 151.37 filing.

  Minn. Stat. § 147.091, subd. 1(p)(4) · verified Sep 2, 2026

• ⚠️ AND THE DISCLOSURE HAS A FORM, A TIME AND A SENTENCE IT MUST CONTAIN. “The physician MUST MAKE THE DISCLOSURES required in this clause IN ADVANCE AND IN WRITING TO THE PATIENT and must INCLUDE IN THE DISCLOSURE A STATEMENT THAT THE PATIENT IS FREE TO CHOOSE A DIFFERENT HEALTH CARE PROVIDER.” In advance, in writing, and carrying that sentence — three requirements a verbal mention at the point of sale does not meet.

  Minn. Stat. § 147.091, subd. 1(p) · verified Sep 2, 2026

• THE REST OF THE GROUND REACHES REFERRAL ECONOMICS. Fee splitting also covers “PAYING, OFFERING TO PAY, RECEIVING, OR AGREEING TO RECEIVE, A COMMISSION, REBATE, OR REMUNERATION, DIRECTLY OR INDIRECTLY, PRIMARILY FOR THE REFERRAL OF PATIENTS OR THE PRESCRIPTION OF DRUGS OR DEVICES”; dividing fees with another physician or professional corporation “UNLESS THE DIVISION IS IN PROPORTION TO THE SERVICES PROVIDED AND THE RESPONSIBILITY ASSUMED” and disclosed; and referring to a provider in which the physician has a “FINANCIAL OR ECONOMIC INTEREST” without disclosure.

  Minn. Stat. § 147.091, subd. 1(p)(1)–(3) · verified Sep 2, 2026

• ⚠️ AND THE CARVE-OUT IS WHAT MAKES A GROUP PRACTICE WORKABLE. The clause “DOES NOT APPLY TO THE DISTRIBUTION OF REVENUES FROM A PARTNERSHIP, GROUP PRACTICE, NONPROFIT CORPORATION, OR PROFESSIONAL CORPORATION TO ITS PARTNERS, SHAREHOLDERS, MEMBERS, OR EMPLOYEES IF THE REVENUES CONSIST ONLY OF FEES FOR SERVICES PERFORMED BY THE PHYSICIAN OR UNDER A PHYSICIAN’S DIRECT SUPERVISION”. Revenue sharing inside the practice is fine; the condition is that the money be fees for physician or physician-supervised work.

  Minn. Stat. § 147.091, subd. 1(p) (carve-out) · verified Sep 2, 2026

• Ownership interests in a professional firm MAY NOT BE OWNED OR HELD, EITHER DIRECTLY OR INDIRECTLY, except by professionals who are licensed and not disqualified with respect to at least one category of the pertinent professional services, or by other qualifying professional firms, partnerships, voting trusts or ESOPs whose trustees and holders are themselves so licensed — plus a one-year window for a sole owner’s surviving spouse.

  Minn. Stat. § 319B.07, subd. 1 · verified Sep 2, 2026

• ⚠️ BUT THE CHAPTER IS OPT-IN. A Minnesota firm that has in effect AN ELECTION may furnish professional services as provided in §§ 319B.01 to 319B.12; a firm may furnish professional services WITHOUT MAKING AN ELECTION so long as no Minnesota statute, rule or TENET OF MINNESOTA COMMON LAW either requires the election or precludes furnishing the services without it. To elect, the firm must STATE THE ELECTION IN ITS ORGANIZATIONAL DOCUMENT, acknowledge it is subject to those sections, and specify the categories of professional services. Whether a Minnesota med spa is bound by § 319B.07 therefore turns first on what its own organizational document says — and then on common law this corpus does not cover.

  Minn. Stat. § 319B.03, subds. 1–2 · verified Sep 2, 2026

How other states answer this

• California
• Colorado
• Illinois
• New Jersey
• Tennessee

Related Minnesota questions

• Can a non-physician own a med spa in Minnesota?
• What business structure does a med spa need in Minnesota?
• In Minnesota, may a non-clinical owner or manager be paid a share of revenue?