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Medical Spa Business Forum > Renting Rooms to Perform Botox/ Fillers

I would like to learn more about your experience or perspective on renting out rooms to perform Botox and fillers. Our business is opening a new location in California with 3 rooms. We focus on offering services that do not need to be performed by a physician, NP, RN, etc.

However, we would like to offer services like Botox and fillers.

What is your experience or perspective on renting out one of the rooms to perform Botox and fillers at the facility described above?

A few points to consider:

- Facility provides booking software
- Facility provides payment processing
- Facility can provide marketing and advertising support.
- Our organization never touches the payments. In other words, the payments are deposited directly to the physicians account.
- The physician is never an employee or an independent contractor. The physician simply rents out the space to offer his/her services.

I thank you in advance for your knowledge, perspective, and insight. Have a wonderful day.

11.14 | Unregistered CommenterO. Bueno

State laws vary. Check with your state medical board and business occupation codes to see what is legal in your state.

11.19 | Unregistered CommenterKay Olson

This is probably the best way to do it. I would make sure the rent is at market rates and not based on percentage of the income. Booking and advertising services can be added on as extra cost but again not based on a percentage. I would also consider having the physician collect their own payments. I don't know the laws in your State, but this way you are just subletting space providing marketing services you and should be safe from running into any glitches with kickback and employment issues in most jurisdictions.

11.20 | Unregistered Commenterhwsong

I would not go the rental route at all. I have been in both a rental situation where I have rented from and then owned a Spa/Salon, having contract specialists come in do clients and leave on a 50% comm base and it works like a dream. In my experience to maintain a happy environment for all who work there, I have asked an expert for advice on this exact topic - 10% of rental/turnover to cover costs (electricity, water and or other) depending on any machinery used, or extra therapists the module to be used should be a direct split of 50% to you and the specialist or 30% to you, 30% to the specialist and 30% to any extra help or supplier payment. All bookings and payments to go through a centralized reservation system avoids politics. Pay your specialist quickly, weekly or on the day and you will have a thriving business.

11.27 | Unregistered Commentermellcart

Thank you for all the answers! Your help is greatly appreciated.

@Kay. Thank you! I will definitely check the state laws.

@hwsong. Thank you for the advice on separating the marketing services.

@mellcart. You are are correct on commission compensation (from my experience). All of our estheticians are W2 employees. However, opening up in CA brings the challenge of corporate practice of medicine when dealing with services like Botox and dermal fillers. The rental route would only apply to the physician.

11.28 | Unregistered CommenterO. Bueno

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