New Jersey ownership & cpom for med spas

Ownership & corporate practice of medicine in New Jersey

New Jersey restricts practice entities to licensed professionals — and then, unusually, spells out the one lawful way an outside business may take part: as a limited partner selling back-office services only, with every clinical and pricing decision left with the licensee.

• A practitioner may practice in a partnership, professional association or limited liability company only where that entity is composed solely of health care professionals, each duly licensed or otherwise authorized to render the same or a closely allied professional service in New Jersey. Closely allied fields include chiropractic, dentistry, nursing, midwifery, optometry, physical therapy, podiatry, psychology and social work.

  N.J.A.C. 13:35-6.16(f)2 · verified Aug 17, 2026

• A general business corporation may hold a limited partner interest in a professional practice only where the corporation supplies non-professional services alone — office management, non-professional hiring, space, equipment and billing. The licensee must retain sole discretion over patient fees, licensed professionals must make every care determination, and the corporation may not represent itself as offering licensed health care services. This is how an outside investor may participate at all.

  N.J.A.C. 13:35-6.16(f)5 · verified Aug 17, 2026

• A licensee may be employed to offer health care services by a general business corporation only in five settings: a State-licensed facility such as an HMO, hospital or ambulatory care center; a corporate clinic providing employee first aid and health monitoring rather than treatment; a non-profit sponsored by a union or a religious or fraternal organization; an accredited educational institution running a student or faculty clinic; or a State-licensed insurance carrier where the licensee performs quality assurance.

  N.J.A.C. 13:35-6.16(f)4 · verified Aug 17, 2026

• A practitioner holding a plenary license may not work for a practitioner holding a narrower one: a physician may not be employed by a podiatrist, a chiropractor or a midwife. Licensees may, however, employ nurses, x-ray technologists, physical therapists and comparable professionals.

  N.J.A.C. 13:35-6.16(f)3 · verified Aug 17, 2026