Earlier this year, Frier Levitt attorneys Daniel Frier, Brandon Zarsky, and Antony Kamel hosted a comprehensive webinar exploring recent trends and future outlooks for 2024 in Aesthetic Medicine. Below are some of the topics discussed:
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Private Equity Trends; Preparing for a Sale
By 2028, Health and Wellness Spa revenues are expected to reach $25.3 billion. Private Equity firms and aesthetic practices with multiple locations are increasingly looking to acquire practices and further consolidate. To prepare for a sale, it is important that the target practice be properly formed and operated. In most states, most aesthetic services are considered to be the practice of medicine. Additionally, ensuring trademark, patent, and copyright protections are in place from the start of the practice to avoid future issues and to protect the practice’s brand.
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Legal Complexities; 2023 Enforcement Actions and Investigations; Structuring a Legally Compliant Business
As the prevalence of aesthetic practices increases, so will enforcement actions against their owners. For example, the FDA recently issued a warning letter regarding unapproved substances and injections provided by aesthetic practices.
Further, state attorney general offices are initiating more enforcement actions against unauthorized procedures performed by non-clinicians. For example, New Jersey recently brought an enforcement action against a cosmetologist for providing services outside the scope of her license and an esthetician was recently fined over $20,000 for providing services such as Botox, platelet-rich plasma (PRP) injections, tattoo removal and hair removal procedures.
It is thus key that owners be aware of the relevant laws and regulations which can vary by state. As more aesthetic practices enter the market, we expect an increase in the number of enforcement actions. and more state-specific legislation targeting aesthetic practices.
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State-by-State Issues; Scope of Practice Concerns
Most laws that impact aesthetic practices are state-based, with each state having different requirements for setting up of a practice and defining the scope of practice for each provider.
For example, in most states, a lay person hiring a clinician violates the corporate practice of medicine doctrine. Additionally, some states prohibit certain management fee structures. In New York, for example, 8 CRR-NY 29.1(b)(4) prohibits management fees that are a percentage of income or receipts of a medical practice.
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FTC Non-Compete Ban
In the webinar, we discussed the FTC non-compete ban. This has since been updated. Please review our most recent publication on the issue HERE.
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Weight-Loss Drug Surge
We expect increased activity in the weight-loss space in 2024. Manufacturers (such as Novo Nordisk), state boards of pharmacy and state boards of medicine have already warned providers about unauthorized users of weight loss injectables. Expect these trends to continue.
Elevate Your Practice with Frier Levitt: Legal Guidance for Thriving in Aesthetic Medicine
In a rapidly evolving landscape where compliance and strategic foresight are paramount, staying ahead is not just an advantage – it’s essential. Discover how Frier Levitt attorneys can provide tailored legal guidance and support to navigate the complexities of the Aesthetic Medicine industry with confidence and clarity.
View the “Hot Topics in Aesthetic Medicine: A Year in Review and Future Outlook” webinar HERE.
