Colorado Laws Every Med Spa Owner Should Know

Key Takeaways:
Colorado med spa owners must comply with strict state laws that govern business ownership, medical oversight and patient transparency. The new 2025 Disclosure Law (HB 1024) requires on-site, online and patient consent disclosures when unlicensed professionals perform delegated procedures. Med spas must also adhere to the Corporate Practice of Medicine (CPOM) doctrine, which restricts ownership of medical practices to licensed physicians and mandates compliant MSO structures for non-physician involvement. Additionally, every med spa must have an actively involved, Colorado-licensed medical director. Working with an experienced small business attorney is essential to ensure full compliance, avoid fines and protect the long-term success of your med spa.

If you run a med spa in Colorado, there are certain state laws governing the industry that have a significant impact on how you run your business. It’s important to be familiar with these laws and regulations to ensure compliance, prevent liability, and avoid costly fines and penalties. The best way to ensure compliance is to work with an experienced small business attorney who can help you navigate the Colorado laws and regulations governing med spas operating in the state.

The following overview will help you understand the most important laws you need to know. At the Law Office of E.C. Lewis, we regularly provide a wide range of legal services to med spas, and we can make sure you remain compliant with all the laws impacting your business.

Med spa technician working on a patient

New 2025 Disclosure Law (HB 1024)

Colorado recently passed a new law intended to improve transparency regarding the use of unlicensed professionals to perform medical-aesthetic services. This law, Colorado House Bill 1024 (HB 1024), implements new disclosure requirements when med spas delegate the administration of procedures used for cosmetic or therapeutic purposes to unlicensed individuals. HB 1024 expands on the existing guidelines established by the Colorado Board of Medical Examiners under Rule 800, which provides guidelines on how these services can be delegated to unlicensed professionals.

The new law doesn’t change the scope of the circumstances under which these services can be delegated. It simply requires practices to make the following disclosures when these services are being delegated to unlicensed practitioners:

  • On-site signage
  • Online and advertising disclosures
  • Patient informed consent

On-Site Signage

Med spas must prominently display a sign at the physical location where services are provided letting patients know that certain medical-aesthetic services are performed by unlicensed professionals. The sign must include the following information:

  • The name, license number and contact information of the delegating practitioner
  • A link to the Colorado Medical Board’s website page where patients can file complaints

Online and Advertising Disclosures

Med spas must add clear statements to their website and all advertising materials indicating:

  • Medical-aesthetic services are delegated
  • The name and license number of the delegating provider

This messaging must be clearly visible on all website service pages associated with treatments that are delegated, as well as on the bio pages of any unlicensed team members who perform these delegated procedures.

Patient Informed Consent

Prior to providing treatment, med spas must obtain a signed informed consent form from each patient. The informed consent form must:

  • Acknowledge that the patient is receiving medical-aesthetic services that have been delegated to an unlicensed professional under the supervision of a licensed provider
  • Include all the information contained on the disclosure sign posted in the office
  • Be retained for at least seven years by the med spa

Important Actions for Med Spas to Take

If you haven’t already adjusted your processes and materials to comply with HB 1024, make sure to take the following actions right away:

  • Audit your current marketing materials, including your website, to make sure all necessary disclosures have been added
  • Update your informed consent forms to address the new requirements
  • Create and post the required sign in your office
  • Train your team on how they should talk with patients about delegation of services to unlicensed professionals
med spa aesthetician working on a patient

Ownership and Corporate Practice of Medicine (CPOM) Doctrine

The Corporate Practice of Medicine (COPM) doctrine has established regulations regarding who can legally own medical practices, including businesses such as med spas. The purpose of this doctrine is to ensure medical decisions are made by licensed physicians without the influence of corporate investors that may prioritize profits over patient care.

Under the CPOM:

  • Only licensed physicians can own medical practices. They can own their practice individually or they can create a professional corporation and companies where all shareholders are licensed physicians.
  • Physician assistants can have an ownership stake in a medical practice as long as it is a minority ownership, and the majority owner must be a licensed physician.
  • Non-physician ownership of medical practices can exist through the presence of a Management Services Organization (MSO) which separates the medical decision-making power from the ability to provide business services.

When an MSO structure is used for ownership of a medical practice:

  • The physician-owned PC is responsible for all aspects of providing clinical services, including all medical decisions
  • The MSO handles tasks and decisions associated with management, facilities, equipment and marketing

CPOM Impact on Med Spas

The hybrid medical-aesthetic nature of med spas creates unique challenges to CPOM compliance that aren’t found in other medical practices. Since medical treatments such as dermal fillers, BOTOX® Cosmetic and laser treatments are categorized as medical procedures requiring physician oversight, aestheticians cannot independently own med spas providing these services. Instead, they must operate under a doctor’s supervision in a business that is physician owned.

If you’re using an MSO structure to run your med spa, it must be structured in the following way to avoid CPOM compliance issues:

  • A physician-owned medical entity which provides all treatments
  • A separate MSO entity handling non-medical services
  • Clear supervision protocols governing non-licensed providers administering medical procedures
  • Compliant fee structures

Common CPOM violations impacting Colorado med spas include:

  • Fee-splitting arrangements between physician and MSO that resemble profit sharing
  • Non-medical MSO entity employs physicians to provide medical services
  • Non-physician stakeholders in the MSO exert influence over decisions requiring medical judgment
  • Control arrangements that don’t work according to the operating agreements established between the physician-owned PC and the MSO
med spa worker with a patient

Medical Director Requirements

Every med spa offering medical services must have a Colorado-licensed medical director who provides oversight over clinical operations. In addition, the medical director must:

  • Be actively involved in the practice
  • Live in Colorado
  • Display their license and contact information prominently at the med spa

Med spas that fail to adhere to these medical director requirements can potentially face significant fines and penalties.

Elizabeth Lewis Can Help

The consequences for failing to comply with these laws and regulations can be devastating for your med spa practice. They may include costly fines, forced corrective actions, increased regulatory scrutiny, administrative citations and, in some instances, suspension of operations. The best way to avoid these consequences is to work with an experienced small business attorney who can review your policies and business structure to ensure you remain compliant. At the Law Office of E.C. Lewis, we have you covered.

Elizabeth Lewis has been providing comprehensive legal services for small businesses in Colorado since 2007. She has extensive experience working with med spas, and she can help you navigate the complex laws governing your practice. Elizabeth will provide the guidance you need to ensure you remain compliant with current laws, and she’ll regularly inform you of important actions to take when new laws get enacted. These protections are critical to the ongoing success of your med spa.

Contact us today to schedule a consultation. The Law Office of E.C. Lewis serves clients in Denver and the surrounding areas.