Tennessee ownership & cpom for med spas

Corporate-practice-of-medicine limits on who may own an aesthetic practice. Below are the Tennessee rules that govern it, each linked to its primary source. Monitoring and reference, not legal advice.

Ownership & corporate practice of medicine in Tennessee

Tennessee runs medical practices through Medical Professional Corporations, and its share-ownership rule follows ownership through intermediate entities rather than stopping at the first one.

Only two categories may form and own shares in a Medical Professional Corporation doing business in Tennessee: PHYSICIANS licensed under Title 63 chapter 6 or 9, or licensed in another state; and partnerships, MPCs or MPLLCs in which ALL partners, shareholders, members or holders of financial rights are themselves such physicians — or entities directly or indirectly owned by them. The rule follows ownership through the stack.
Tenn. Comp. R. & Regs. 0880-02-.20(1)(b) · verified Sep 2, 2026
The exception is a closed statutory list: the health care professional combinations specifically enumerated in T.C.A. § 48-101-610, and professionals authorized by §§ 48-101-610 or 48-248-401 to own shares or hold financial rights. A profession not on that list does not qualify, and a lay investor is on no list.
Tenn. Comp. R. & Regs. 0880-02-.20(1)(b)2.(ii) · verified Sep 2, 2026
One piece of administrative relief worth knowing: a Medical Professional Corporation NEED NOT file its Charter or its Annual Statement of Qualifications with the Board. The entity is governed by Title 48 chapter 101 part 6; the Board regulates the physicians inside it rather than the paperwork of the company.
Tenn. Comp. R. & Regs. 0880-02-.20(1)(a) · verified Sep 2, 2026
⚠️ TENNESSEE’S FEE GROUND IS ONE LINE, AND ITS BREADTH IS THE POINT. Grounds for discipline include “GIVING OR RECEIVING, OR AIDING OR ABETTING THE GIVING OR RECEIVING, OF REBATES, EITHER DIRECTLY OR INDIRECTLY.” The statute does not define “rebate”, does not limit it to referrals, and reaches the party who merely assists — so a marketing or management arrangement that returns part of a treatment price is judged against a term with no stated boundary.
Tenn. Code Ann. § 63-6-214(b)(16) · verified Sep 2, 2026 · read at Justia Law

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