Intrigued by a fragmented market and the potential for scalability, private equity firms are turning to plastic surgery physician practices for new investment opportunities. Morgan Lewis discusses key healthcare regulatory due diligence considerations for private equity firms approaching such an investment and for plastic surgery physician practices preparing for a future sale.
In addition to traditional surgical cosmetic procedures, plastic surgery practices are increasingly offering non-surgical medical spa or “med spa” services, which include non-surgical aesthetic medical services, as well as non-medical aesthetic services. The med spa portion of a plastic surgery practice typically offers non-medical procedures, such as laser hair removal, microneedling, and tattoo removal, through non-clinicians, such as medical assistants, cosmetologists, and estheticians. Some common non-surgical aesthetic medical treatments, which are typically performed by mid-level providers or registered nurses, include neurotoxin injections, injectable dermal fillers, and laser skin resurfacing and rejuvenation.
In light of the expanded scope of services, plastic surgery practices (especially those with a med spa component) present unique healthcare regulatory due diligence considerations, beyond some of the common physician practice diligence issues. Read more.
