Utah Management Services Agreement Guide: Keeping Out of the Interference Statute
Utah makes it a felony for a business with a financial interest in a practice to substantially interfere with a physician's practice, and its 2026 law bans healthcare non-competes, including those with an MSO.
Key Highlights
- Section 58-67-501 bars any person or entity that manages, owns, operates or conducts a business with a financial interest in the licensee's practice from substantially interfering with it, as a third-degree felony.
- Carve-outs cover utilization management and clinical standards approved by a physician or committee, peer review, second opinions, employment supervision that does not interfere with independent judgment and compensation not tied to a particular patient's treatment.
- House Bill 270 bars healthcare non-competes entered into on or after May 6, 2026, including between an MSO and a clinician.
- A facility may not advertise as a medical spa without a prescriber on the premises while procedures are performed.
How to Price the Management Fee
We found no express fee-splitting or percentage-fee statute in the physician chapters we searched, and could not read the Division's rule. The interference statute carves out compensation incentives not tied to a particular patient's treatment. We use a fixed fee for defined services.
What the Practice Must Keep
Treatment, prescribing, protocols, clinical staffing and patient advice stay with the physician, and any clinical standard the MSO proposes is approved by a physician or physician committee. Cosmetic medical procedures need a supervisor who is a physician or an APRN with an unrestricted license, and the supervisor develops the treatment plan and evaluates the patient in person or by live telemedicine.
Terms to Avoid
Avoid any term by which the MSO substantially interferes with the physician's practice, contracts limiting the physician's ability to advise patients fully about options, and clinical standards the MSO sets without physician approval. Marketing, scheduling, facilities and non-clinical human resources are less exposed.
Term, Records and Departing Clinicians
House Bill 270 bars non-competes between any person and a healthcare worker entered into on or after May 6, 2026, with exceptions for reasonable severance agreements and sale-of-business covenants, and bars non-solicitation clauses that stop a worker from telling patients where they now practice. Because it covers any person, a covenant between an MSO and a clinician is covered.
Filings, Notices and Watch Items
We found no Utah transaction notice law. A facility must post the supervisor's name and provide a number answered within 24 hours, and physicians may not delegate ablative procedures to non-licensees.
Drafting Checklist
- Fee: fixed for defined services.
- Standards: clinical standards approved by a physician.
- Interference: none.
- Supervisor: physician or unrestricted APRN with a treatment plan.
- Non-competes: none, including with the MSO.
How We Draft It
Patients pay the physician-owned practice, the practice pays the management company a fixed monthly fee under the agreement, and the management company pays MedGrid a fixed monthly retainer for consulting. The management company never practices medicine, and the agreement never moves a clinical decision to it. Our template follows the same flat-fee design in every state, with the state-specific limits below layered on top.
Disclaimer
This article is general educational information, not legal advice. Management agreement rules change and differ by state, and this summary draws on our published state guide, parts of which rest on secondary sources, so have health care counsel in the state review any agreement before you sign.
MedGrid MSO provides management services to independently owned practices; it does not practise medicine and does not direct clinical decisions. Requirements vary by state and by service, and change over time — nothing on this page is legal or medical advice. Talk to us or your own counsel before making a structural decision for your clinic.