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Georgia · Ownership

Can a nurse practitioner own a med spa in Georgia?

It is the question NP owners ask most often, and the answer surprises people in both directions: ownership is easier than they expect, and one employment rule is stricter.

The short answer

Yes. Georgia has no general prohibition on a non-physician owning a business that delivers medical services. The state's corporate practice of medicine provision, former O.C.G.A. § 43-34-37, was repealed in 1982 and never replaced.

Most NP-owned Georgia med spas are organized as an LLC rather than a professional corporation. The one hard line: an APRN owner may not employ the physician who supervises her.

Why an LLC, not a professional corporation

The professional corporation is optional in Georgia: O.C.G.A. § 14-7-3 says a licensed person may elect to practice through one. If you do elect it, § 14-7-5(a) limits shareholders to individuals licensed in the profession the corporation was organized for — which is why an APRN cannot simply hold stock in a medical P.C.

The limited liability company has no equivalent licensure test. O.C.G.A. § 14-11-1107(f) provides that Georgia's professional-services laws are superseded to the extent they conflict on form of organization, and are deemed amended to permit professional services through LLCs. That is the structure most NP owners use.

The rule that catches NP owners

O.C.G.A. § 43-34-25(n) makes it unlawful for a physician to be an employee of an advanced practice registered nurse, alone or in combination with others, if the physician is required to supervise that APRN. Rule 360-32-.04(5) restates the same limitation as a Board rule, so it is a licensing matter for both licensees.

The exception in § 43-34-25(g)(7) covers 501(c)(3) entities primarily serving uninsured or indigent patients and federally funded health centers. No med spa qualifies.

Two sentences hold the whole answer. An APRN may own the practice. That same APRN may not put her supervising physician on the practice's payroll.

Where the real exposure sits

What remains of the corporate-practice idea in Georgia is narrow: only an individual can be licensed to practice medicine, and the Board keeps authority over arrangements in which an unlicensed party directs clinical judgment. Georgia health-law practitioners note the Board has not brought an enforcement action on that theory. The working line: owning the business is not the problem; directing the medicine is.

For how the employment rule interacts with MSOs and independent-contractor arrangements, see Can a Georgia med spa employ its own medical director?

How Local Medical Directors helps

We tell NP owners up front which supervision structures we will sign and which we will not, and why — before anyone files anything. Entity structure itself is a question for a Georgia healthcare attorney, and we will say so.

Related questions

Does Georgia have a corporate practice of medicine doctrine?

Not as a standing statute. Former O.C.G.A. § 43-34-37 was repealed in 1982. What remains is indirect: only an individual may be licensed to practice medicine, and the Board retains authority over arrangements in which an unlicensed party directs a physician's clinical judgment.

Can a physician assistant own a med spa in Georgia?

The same ownership analysis applies, and so does a parallel employment rule: O.C.G.A. § 43-34-103(k) makes it unlawful for a physician to be the employee of a physician assistant the physician is required to supervise, grandfathering only arrangements the Board approved on or before July 1, 2009.

Should an NP owner set up an MSO?

In Georgia an MSO is a financing, multi-site, and investor-readiness decision rather than a compliance requirement, because Georgia does not bar non-physician ownership. An MSO also does not by itself resolve the physician-employment rule in O.C.G.A. § 43-34-25(n); that question belongs with Georgia healthcare counsel.

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