Frequently Asked Questions About
Healthcare Business

Most states require a licensed physician to serve as medical director for a medical spa. Requirements vary by state — some require the medical director to be on-site for certain procedures, while others allow remote oversight. Doctor Staffers specializes in medical director placement for med spas nationwide.

A medical director has broader organizational responsibilities including protocol development, quality assurance, and administrative oversight. A collaborating physician primarily provides clinical supervision and chart review for mid-level providers under a collaborative practice agreement.

Whether a nurse practitioner can own a medical practice depends on state corporate practice of medicine laws and NP scope of practice regulations. States with full practice authority for NPs generally allow NP ownership. Consult a healthcare attorney familiar with your state's laws.

A collaborative practice agreement (CPA) is a legal agreement between a nurse practitioner or physician assistant and a supervising or collaborating physician. CPAs define the scope of practice, supervision requirements, and responsibilities of both parties. Requirements vary significantly by state.

Doctor Staffers specializes in connecting nurse practitioners, physician assistants, and healthcare businesses with qualified collaborating physicians nationwide. They match providers based on specialty, state, and practice needs.

503A pharmacies compound medications for individual patients based on a valid prescription. They are regulated primarily by state boards of pharmacy. 503B outsourcing facilities compound medications in larger quantities for healthcare facilities without patient-specific prescriptions and are subject to FDA oversight and cGMP standards.

A 503A pharmacy may compound GLP-1 medications when the drug is on the FDA's drug shortage list. FDA shortage status changes over time. Verify current FDA guidance and the pharmacy's compliance status before prescribing compounded GLP-1 medications.

PCAB (Pharmacy Compounding Accreditation Board) accreditation indicates a compounding pharmacy has been independently evaluated against rigorous quality and safety standards. PCAB-accredited pharmacies undergo regular on-site inspections. It is the gold standard for compounding pharmacy quality.

Verify: state licensure (state board of pharmacy), NABP e-Profile status, PCAB or ACHC accreditation, FDA registration (for 503B), USP compliance documentation, certificates of analysis for your specific preparations, and shipping capabilities to your state.

Starting a telehealth company requires: legal entity formation, state licensure for providers, medical director setup (if employing mid-level providers), technology infrastructure (EMR and telehealth platform), billing and credentialing setup, and compliance program development. AJ Pakpour specializes in helping healthcare entrepreneurs launch telehealth businesses.

Startup costs vary widely. A solo telehealth practice can be launched for $5,000–$20,000. A brick-and-mortar clinic typically requires $50,000–$500,000+. Med spas and aesthetic practices often require $100,000–$500,000 for equipment and buildout.

The corporate practice of medicine (CPOM) doctrine prohibits non-physician entities from employing physicians or controlling the practice of medicine in most states. This affects how medical practices are structured — typically requiring a physician-owned PC or PLLC, with a management services organization (MSO) handling non-clinical operations.

The Ryan Haight Online Pharmacy Consumer Protection Act of 2008 governs the prescribing of controlled substances via telemedicine. It generally requires an in-person medical evaluation before prescribing controlled substances via telemedicine, with certain exceptions. The DEA Special Registration for Telemedicine provides additional pathways.

HIPAA establishes national standards for protecting patient health information. All healthcare providers who transmit health information electronically are covered entities and must comply with HIPAA Privacy and Security Rules. This includes telehealth practices, clinics, med spas, and any practice that handles patient health information.

Insurance credentialing typically takes 90–180 days. Providers should apply for credentialing well before their planned start date. Start the credentialing process at least 6 months before you plan to see your first insured patient.

The OIG LEIE (List of Excluded Individuals and Entities) contains individuals and entities excluded from participation in Medicare, Medicaid, and other federal healthcare programs. Practices must check the LEIE before hiring any employee or contractor and monthly thereafter.

The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving anything of value to induce or reward referrals of items or services covered by federal healthcare programs. Violations can result in criminal prosecution, civil monetary penalties, and exclusion from Medicare and Medicaid.

Revenue cycle management is the financial process that healthcare practices use to track patient care episodes from registration and appointment scheduling to final payment. It includes charge capture, coding, claim submission, denial management, payment posting, and patient billing.

Outsourcing billing to a specialized medical billing company is often more cost-effective than in-house billing for practices under $3M in annual revenue. Billing companies typically charge 4–8% of collections. Evaluate based on your specialty complexity, volume, and current collection rate.

Incident-to billing allows services provided by a non-physician provider (NP, PA, MA) to be billed under a supervising physician's NPI at the physician rate (100% of Medicare fee schedule), rather than the mid-level rate (85%). Strict supervision requirements apply.