Every state warns that a physician-owned professional corporation has to be real. New Jersey is the state that proved what happens when it is not — in front of its Supreme Court, for roughly four million dollars.
Allstate Insurance Co. v. Northfield Medical Center, decided May 4, 2017, allowed Insurance Fraud Prevention Act liability where a practice structure was found to be a sham designed to evade physician ownership and control requirements. The liability reached the parties who promoted the model, not just the practice that used it.
What New Jersey actually requires
- A physician-owned professional corporation delivering the medical services, with a separately owned management company for everything else.
- No fee splitting and no compensation tied to referrals.
- Direct supervision: the supervising physician immediately available on the premises or by real-time audio-video connection, with periodic in-person or chart review.
- RNs performing certain injections or non-ablative treatments only under a detailed, physician-signed protocol.
- No unlicensed personnel injecting, peeling or operating lasers — including under remote direction.
Who may do what in New Jersey
| License | What they may do |
|---|---|
| MD or DO | Broad authority to perform, supervise and delegate; owns the PC |
| Physician assistant | Under a collaborative or supervisory arrangement |
| Advanced practice nurse | Under the applicable collaborative practice agreement |
| Registered nurse | Specific procedures only, under a detailed physician-signed protocol |
| Unlicensed staff | Never — a 2025 enforcement matter produced a five-year suspension and a fine |
New Jersey draws the line between ablative and non-ablative devices more tightly than most states. Confirm where a specific device falls before you buy it, not after it is installed.
What MDside provides in New Jersey
- New Jersey-licensed physicians who actually perform the role — protocol approval, chart review, availability during treatment hours.
- A management relationship with a fixed fee, real physician control rights, and a termination mechanism that works in both directions.
- A structure review against the clauses that made the Northfield model a sham: unilateral share transfer, percentage fees, manager-set protocols, manager-only personnel authority, token physician compensation, perpetual terms.
- Licensed providers for evaluations and good faith exams.
- Pharmacy sourcing and lab draws under the same structure.
See everything that is included, or book a call and tell us which states you operate in.
Read the detail on New Jersey
Frequently asked questions
Can a non-physician own a med spa in New Jersey?
A non-physician may own a company providing management, premises, marketing and administration. The entity rendering medical services is owned and governed by licensed physicians.
Does the supervising physician have to be on site in New Jersey?
The standard is immediate availability — on the premises or by real-time audio-video connection — combined with periodic in-person or chart review.
Can a registered nurse inject in New Jersey?
Certain injections and non-ablative treatments may be delegated to an RN under a detailed, physician-signed protocol. Unlicensed personnel may not perform them at all.
General information about New Jersey practice structure and med spa regulation, not legal advice. Statutes, board rules and scope-of-practice requirements change. Confirm your obligations with healthcare counsel licensed in New Jersey.