What limits does Minnesota place on a med spa's business structure?
Ownership · part of The Practice Perimeter
Short answer
The cited rules do not settle which entity to use — they bar paying for referrals and undisclosed financial interests, and permit revenue sharing within a partnership, group, or professional corporation if it is only fees for physician or supervised work.
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 · regulatory monitoring, not legal advice
Related Minnesota rules
⚠️ 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
⚠️ 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
How other states answer this
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Related Minnesota questions
- Can a non-physician own a med spa in Minnesota?
- Can private equity invest in a med spa in Minnesota?
- In Minnesota, may a non-clinical owner or manager be paid a share of revenue?
Get Minnesota changes as they publish
We scan the Minnesota legislature and licensing boards daily, plus the FDA and the Federal Register. Free weekly Brief — what changed, in plain language, with the source.
Free · unsubscribe in one click · we never sell your address
← All Minnesota 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).