A Physician Behind Your PracticeThe Business Stays Yours
Medical direction is the first thing a med spa needs and the last thing anyone explains. We connect your clinic with a licensed physician in your state, paper the relationship the way your board expects, write the protocols your staff will actually follow, and keep all of it current. Then the catalog, the member pricing and the back office sit on top.
Scope varies with your state and what your clinic already has in place. We confirm the specifics on the first call.
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How MedGrid Finds Your Medical Director
What MedGrid MSO Is
A Consulting and Management Agency — Not a Medical Practice
MedGrid is a management services and consulting organization built for med spas, IV lounges, hormone and weight-loss clinics, and wellness practices. We stand up the legal and operational structure a medical practice is required to have, then run the consulting, compliance and back-office work that sits around it. We never practice medicine and never direct a clinical decision — the clinical practice stays a licensed medical entity, the business stays yours, and MedGrid sits between them as the management and consulting company, holding the administrative work under a management services agreement so that ownership, control and clinical decision-making land exactly where the law says they must.
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Medical Director Oversight
A verified medical director licensed in your state, connected to your clinic and contracted properly — chart signing and prescription management, with scope of oversight, standing orders and Good Faith Exam protocol documented.
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Collaborating Physician
For nurse practitioners and PAs in states that require a collaborating or supervising physician, we connect that physician and document the collaboration agreement, chart-review cadence and the prescribing authority your license actually depends on.
03
Business Consulting & Marketing
Offer and pricing strategy, patient acquisition and marketing review — built so growth campaigns stay inside advertising, scope-of-practice and platform rules instead of creating exposure later.
04
Full Legal Structure
The professional entity and the management company formed, joined by a management services agreement, with operating agreements, transfer and succession documents where the state requires them, plus EIN, registered agent and state filings.
Why a Director Comes First
The Rule Most Clinic Owners Meet After They've Signed a Lease
Injectables, lasers, IV therapy and weight-loss prescribing are medical treatment. In most states they may only be delivered under the direction of a licensed physician, and in many states a non-physician cannot own the entity that delivers them. That is the corporate-practice-of-medicine doctrine, and it is why the ownership structure of a med spa is not a formality.
An MSO exists to sit on the right side of that line: you own the business, the physician owns the medicine, and a management agreement connects them. Done casually, it is the exposure that closes clinics. Done properly, it is invisible — which is the point. We build it properly and keep it that way as your state's rules move.
The Legal Foundation
CPOM Laws and the PC-MSO Structure, Plainly
Two ideas explain almost everything about how a med spa or wellness clinic has to be built. Here they are, without the jargon.
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States Enforce CPOM
In some form — strict or moderate.
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Strict-Enforcement States
Actively litigated and audited — the friendly-PC structure is not optional.
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Moderate-Enforcement States
The rule is on the books and rarely tested — until it is.
The other 18 states and DC do not enforce a corporate-practice-of-medicine doctrine the same way — a non-physician can generally own the entity that delivers treatment there. That does not remove the requirement for a licensed medical director; it changes what the ownership paperwork has to look like. See your state's tier.
The Rule
Corporate Practice of Medicine (CPOM)
Medical decisions belong to the license, not the ownership structure — a business entity cannot itself hold a medical license or make a clinical call.
Most states require a documented line of physician oversight for any service that counts as medical treatment, not a verbal arrangement.
Enforcement is not uniform. Some states litigate and audit it actively; others state the rule but rarely enforce it. We confirm your state’s actual posture before we build anything — a licensed director is required either way.
The Fix
The PC-MSO Solution
PC — Professional Corporation: physician-owned, holds the medical license, the standing orders and every clinical decision that touches a patient.
MSO — Management Services Organization: owned by you, holds the brand, the lease, staff, systems and supply — everything that is not the practice of medicine.
A Management Services Agreement (MSA) between the two is the actual contract that makes the split real — what each side owes the other, and how the management fee moves from the PC to the MSO every month.
Both fees are flat, fixed dollar amounts — never a percentage of collections, a rate per patient, or a rate tied to headcount. A fee that moves with volume is fee-splitting, which is what turns a compliant structure into a kickback exposure for everyone on the agreement.
In a strict-enforcement state, the PC is not a formality: the physician who owns it is the one whose license is actually on the line, which is why the standing orders, the protocols and the chart-review cadence run through them directly rather than through a name on a wall certificate. The MSO structure holds up because the two entities stay genuinely separate — separate bank accounts, a real management fee rather than a revenue split, and clinical decisions that are never made or reviewed by anyone on the MSO side. We connect you with a physician licensed in your state to sit inside that PC — not a name rented for a signature, but the person actually signing your standing orders and running your chart-review cadence.
Operating Structure
The Management Agreement and the Flow of Funds
The PC and the MSO are connected by a Management Services Agreement (MSA), the contract that defines what each side owes the other and how money actually moves between them.
Step 1
Patients
Cash pay at the point of care. No insurance claims.
All clinical revenue
Step 2
The PC
Physician-owned. Receives the revenue, pays clinicians, malpractice and clinical supplies first.
Fixed monthly transfer under the MSA
Step 3
The Management Company (LLC)
The MSO. Holds the administrative infrastructure for everything non-clinical.
Fixed monthly retainer, invoiced
Step 4
MedGrid
Consulting agency to the LLC. Non-clinical services only.
The medical director: in a corporate-practice state the PC pays the director as its own clinician, before any transfer to the LLC. In a state without a corporate-practice bar, the director may instead invoice MedGrid for non-clinical advisory time. Clinical work is always paid by the PC.
01
Patient Revenue
All clinical revenue is cash pay, earned and received by the PC in its own account, never by the MSO. The PC covers clinician compensation, malpractice and clinical supplies first. Separate accounts, books and payroll keep the physician’s license and your investment protected if either side is ever questioned.
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The Management Transfer
On the schedule set in the management services agreement, normally monthly, the PC transfers a fixed, fair-market amount to the management company (the LLC) for the non-clinical services it provides, never a percentage of medical revenue. That percentage is what turns a fee into fee-splitting.
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The MedGrid Retainer
The LLC pays MedGrid a fixed monthly retainer, invoiced against a written scope of consulting, accounting, marketing, membership and certification work. MedGrid charges for no medical service and never touches a patient payment.
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Who Signs What
The physician signs medical decisions, you sign business decisions, and the MSA keeps that line clean. The medical director is paid by the PC for clinical work, or by invoice to MedGrid for non-clinical advisory time in states where the law allows it.
Inside the Agreement
What a Management Agreement That Holds Up Contains
Scope
What the MSO Provides
A written list of the non-clinical services the MSO delivers: brand and marketing, lease and equipment, non-clinical staff and payroll, systems, purchasing and vendor accounts, billing operations and back-office administration.
The Fee
Flat and Fair-Market
One fixed monthly amount from the PC to the management company, set to fair market value for the services actually provided, followed by a fixed monthly retainer from the LLC to MedGrid. Neither is ever a percentage of medical revenue or a payment per patient or per referral, which is what keeps it from becoming fee-splitting.
Clinical Authority
Reserved to the PC
Diagnosis, treatment, protocols, prescribing, clinical hiring and discipline stay with the physician-owned entity, in writing. The MSO runs the business around the medicine and does not direct it.
Term
Term, Renewal and Exit
A defined term, renewal terms and termination rights for both sides, plus what happens to records, staff, equipment and patient continuity if the relationship ends, so neither side is trapped and patients are never stranded.
Records
Records, Privacy and the BAA
The medical record belongs to the PC. The MSO touches patient information only as a business associate under a HIPAA business associate agreement, with access limited to what its functions need.
Oversight
Built to Be Audited
Both sides agree to cooperate with board inquiries, insurer audits and buyer diligence, and the compliance file that supports the arrangement is kept current by the MSO and reviewed by the physician.
Common Ways This Goes Wrong
Four Mistakes We Rebuild Most Often
Most clinics arrive with a version of one of these. They are fixable without closing the doors, and they are the first things a board, insurer or buyer notices.
A Fee That Is a Revenue ShareA percentage of collections turns a service fee into fee-splitting in most corporate-practice states.
A Director With No Delegation on PaperA name on a form with no written protocols, delegation or chart review does not show clinical control.
The MSO Making Clinical CallsHiring or firing clinicians over clinical judgment, or setting treatment, is the control boards read most broadly.
One Account for EverythingCommingled funds erase the separation between the practice of medicine and the business around it.
General structure, not a legal opinion for your clinic. Your director and counsel confirm the specifics before you treat.
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Where the Money Actually Goes
What This Covers
How money actually moves through a PC/MSO structure — patient revenue landing in the PC, the fixed management transfer to the MSO, MedGrid's retainer, and physician compensation — the same CPOM flow of funds covered on this page, walked through step by step.
This isn't just how we recommend running the accounts. In a state that enforces corporate practice of medicine, this exact flow is required to keep a PC structure compliant: revenue lands in the PC first, the MSO is paid a fixed, fair-market amount rather than a share of medical revenue, MedGrid is paid a fixed retainer by the MSO, and the accounts stay separate.
It's also why MedGrid only builds on a PC — never a PLLC — in every state we work in. A PLLC lets revenue flow straight into a member's account with no equivalent separation, which is exactly the structure this flow of funds is built to avoid. Why that distinction matters.
The Role, Concretely
What Your Medical Director Actually Does
Standing Orders
Written authorization for what your staff may perform, on whom, and under what conditions — the document a board asks for first.
Protocol Approval
Every treatment you offer reviewed and signed off, with contraindications and escalation paths spelled out.
Clearance Screenings
Who performs the initial examination, in person or by telehealth, defined the way your state allows.
Chart Review
A real cadence of chart review — the director signs off on at least 10% of charts each month, scheduled and recorded, rather than a signature applied in arrears.
Availability
Reachable when a treatment goes sideways — with a documented escalation route your injectors know by heart.
Staff Competency
Training sign-off for each provider and each device, kept on file and refreshed as your team changes.
Mid-Level Providers
Collaborating Physician for NP & PA-Led Practices
Many states let a nurse practitioner or physician assistant run day-to-day care under a formal collaborative or supervisory agreement with a physician, rather than a full-time on-site medical director. If that is how your practice is structured, the paperwork is different — and it still has to be right.
State-specific collaborative or supervisory agreements, aligned to what your state actually requires for an NP- or PA-led practice.
Chart review and protocol approval on the cadence your state sets — the physician signs off on at least 10% of charts every month, performed by someone who is actually reviewing them.
A collaborating physician who responds — not a signature obtained once and never heard from again.
Connecting
How to Find a Medical Director
Intake
Your state, treatments, hours and how much physician involvement your services actually require.
Connect
We connect you with a licensed physician matched to the specific services you offer — not a shortlist you have to vet and choose from yourself.
Confirm
A kickoff call to confirm scope, availability and the review cadence. The match is already made — this sets the working relationship up, it is not a tryout.
Ownership, brand, pricing, staffing and hours. We are a service provider, not a partner on your cap table.
The Patient Relationship
Your clinic, your chart, your patients. Nothing gets rerouted through a call center.
Your Suppliers
Member pricing is an offer, not an obligation. Keep the vendors you like and use us where we are cheaper.
The Exit
Month to month after the first quarter. Your protocols and compliance files leave with you.
Inside Onboarding
What We Actually Build Before You See a Patient
Most owners meet this list one missing document at a time, usually under pressure. We work through it in order and hand over the whole file at the end.
Stage One
The Entity
Name clearance and Secretary of State filing
Articles of incorporation prepared and filed
Federal EIN registered with the IRS
Trade name (DBA) registered where needed
Bylaws drafted and adopted
S-corp election filed where it makes sense
Stage Two
The Agreements
Management services agreement between your company and the PC
Consulting and director agreements executed
Banking opened in a CPOM-appropriate structure
Ownership and control terms reviewed against your state
Stage Three
Cover, Payroll & Accounting
General liability placed
Professional liability (malpractice) placed
Employment practices liability coverage arranged
Payroll platform stood up and running
Worker classification reviewed — employee versus contractor
Bookkeeping and accounting workflow set up
Stage Four
Clinical Readiness
Clinical staff credentials verified
Clearance screening workflow defined and trained
Treatment protocols written and signed off
EHR platform selected and configured
Vendor and pharmacy accounts opened
Stage Five
Growth & Marketing
Offer and pricing strategy reviewed
Patient-facing campaign copy checked against your state's advertising rules
Launch plan built for any new service line
Stage Six
Ongoing Compliance
Chart-review cadence scheduled on the calendar
Annual document review date set
LegitScript or compliance framework enrollment where required
Scope varies with your state and whether the entity already exists — we tell you which items you can skip on the first call rather than billing for all of them.
Medical Direction, Asked and Answered
The Questions Owners Ask Us
How Is the Director Paid?
A flat monthly stipend for their time, set by state and scope — never billed by the hour, per patient, or by headcount, since a fee that moves with volume is a kickback exposure for both sides — and paid transparently, so you see the figure, not a bundled fee with a margin hidden in it.
What If the Connection Is Wrong?
We connect you with someone else. You are not locked into a physician relationship that is not working, and the compliance file transfers.
Does the Director Control My Business?
They direct clinical care, which is the point. Business decisions — pricing, marketing, staffing, hours — stay with you, and the agreement says so plainly.
What About Multiple States?
Each state needs a physician licensed in it. We handle per-state coverage for multi-location groups as part of Group membership.
Is This Legal Advice?
No. We maintain templates and tell you what your state requires; your director and your counsel make the calls. Nothing here is legal advice.
How Does This Relate to the Marketplace?
Same company, same login. The MSO builds the clinical and compliance structure; the marketplace supplies it. You can use either alone.
Tell Us About Your Clinic
Three questions, then a twenty-minute call. If we can't help, we'll say so on that call.