Who Can Start A Ketamine Clinic?

In this blog you will learn what factors determine who can open a ketamine clinic, who can perform ketamine infusions, and how this relates to the corporate practice of medicine.

This blog is available for informational purposes only and is not considered legal advice on any subject matter. Please seek professional advice from an attorney in the state in which you are planning to open your own ketamine infusion clinic.

When it comes to opening a ketamine clinic, there are several factors that should be considered. This is why we recommend working with a business attorney. 

“Who can open a ketamine clinic?”

A question we often get asked is, “Who can open a ketamine clinic?” and the short answer is “it depends.” It primarily depends on two things: 1) what state you are going to open your ketamine clinic” and 2) is the individual who is going to open the ketamine clinic a licensed medical professional?

Before we dive into answering these questions, we want to be clear, if you are serious about opening a ketamine infusion clinic, please work with a business attorney who is knowledgeable in opening a medical practice in your state along with a certified public accountant. So with that out of the way, let's explore this topic some more! 

Each state has different requirements to open a private medical practice.

What state are you going to open your ketamine infusion clinic in?

The experience and knowledge we have on this topic stems from our own research and opening a ketamine clinic in California. However, since we are asked this question often and have helped individuals open clinics in states outside of California, we do know a little (but let us remind you again, do your own homework!). You are essentially opening a private medical practice. There is much variation on who can open a medical practice depending on what state you are in. For example in California, only doctors (MD/DOs) can open up medical practices. In Washington state, nurse practitioners/CRNAs (i.e. nurses with advanced training) can open up their practices, as well as doctors. In Florida, anyone can own a clinic and hire physicians as employees. To keep things above board, speak with a business attorney in the state you are planning to open a clinic in who is familiar with starting a medical clinic.

It is possible for both a licensed and non-licensed medical professional to start a ketamine clinic in California by creating a Management Service Organization and Management Service Agreement. 

Who is going to open, i.e. own, the ketamine infusion clinic?

Let’s say you are not a licensed medical professional, or you are not a doctor and you want to open a ketamine clinic in California. Or you are a doctor in California who wants to partner with non-medical professional investors. What can you do? One way to navigate this situation is by creating a Management Service Organization (MSO). 

You are probably familiar with these kinds of organizations and are probably working with one now in your traditional clinical job. MSO’s take care of all the administrative work related to running a medical practice, like human resources, marketing, billing etc. Large hospital-systems and healthcare organizations utilize these organizations. Your non-licensed medical professional business partners or investors could create an MSO. Then you as the physician would create a professional corporation and enter a Management Service Agreement (MSA) with the MSO. That is how they can be involved at an owner-level in starting a ketamine clinic in states where only licensed medical professionals can only open medical practices. 

The Corporate Practice Of Medicine (CPOM) & Ketamine Clinics

Before we finish this blog post, we need to explore one final topic from which actually this entire post is based on, what is the corporate practice of medicine (CPOM) and how does this relate to you starting your ketamine clinic? Known officially in California as the Medical Practice Act, this law prohibits those without medical licenses from employing physicians or owning a medical practice, i.e. the practice of medicine can only be done by licensed professionals and not corporations. Not all states have this rule, thus why you have to answer the above two questions before starting a ketamine clinic: where are you going to open the ketamine clinic and who is going to be owning it. 

Summary

In a nutshell, who can open a ketamine clinic depends on which state you are in and if you are a licensed medical professional or not. Who can open a medical clinic depends on the state you are working in. As discussed in this blog, a way to circumvent having non-medical professional owners or investors is utilizing a MSO. It may seem like there are a bunch of rules and regulations you have to work around, but we don’t want to let that stop you from starting your own clinic! This is why we encourage you to speak with a knowledgeable business attorney to help you in starting this new venture. 

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If you found this blog helpful, you may enjoy one of these blogs:

What Licenses Do You Need to Open a Ketamine Clinic?

You’ve committed to start a ketamine infusion clinic! Now you may be wondering what licenses or permits you need. Our blog is here to help get you started.

Does A Licensed Physician Need To Be Present During Ketamine Infusions?

We've been asked this question quite often, "Is it required that a licensed physician be present during ketamine infusions?" If you're wondering the same thing too, read our blog to find out the answer. 

Can My City's Population Support A Ketamine Clinic?

As ketamine and other psychedelics get more and more popular, more clinics are going to open up. Maybe you want to open one, but will your city's population support such an endeavor? Check out our blog where we explore the answer to this question.

Do you have to be a medical professional to open a ketamine clinic? It depends on where you will open your clinic and the rules and regulations governing that state. In this blog, we will take a deep dive into this commonly asked question!