The rising popularity of GLP-1 medications, like semaglutide and tirzepatide, is changing the landscape for medical spas across the United States. Once primarily seen as places for cosmetic treatments, these spas are now facing new challenges and risks in a rapidly evolving market.
As demand for weight-loss drugs grows, medical spas are under more scrutiny than ever before. They are now dealing with stricter regulations, increased liability risks, and a tougher insurance market. Bobbie Williams, a healthcare expert at Novatae Risk Group, explains that medispas offer a mix of aesthetic and wellness services under the supervision of licensed physicians. This hybrid model makes them unique but also more complicated to manage.
Recent actions by federal and state authorities have added to the pressure. The FDA has declared that shortages of GLP-1 drugs are resolved, which has led to restrictions on compounding these medications. States like Rhode Island are now requiring medispas to have medical directors and licenses, while Texas has introduced new rules for elective IV therapy. Ohio’s attorney general has sent warning letters to spas that are making misleading claims about compounded weight-loss drugs, and Mississippi has banned off-label use of any drug for weight loss unless it has FDA approval.
These regulatory changes are forcing medispas to rethink their operations. Williams notes that underwriters are now requiring stricter compliance checks before issuing insurance policies. Insurers are closely examining operational safeguards, including consent forms and staff qualifications, to ensure that medispas are meeting safety standards.
The trend toward mail-order prescriptions, such as Ozempic, is also raising concerns. While convenient, this practice increases exposure for providers, as underwriters prefer patients to be seen in person by qualified professionals before receiving treatment.
Professional liability insurance remains crucial for medispas, but the risks vary widely depending on the services provided. Simple mistakes in procedures like microneedling can lead to claims, while more invasive treatments, such as fat transfers, carry greater risks.
Williams emphasizes the importance of aligning with knowledgeable underwriters who understand the specifics of the medispa sector. She advises brokers to present thorough compliance evidence, including consent forms and staff credentials, to secure favorable coverage terms.
As the industry faces these challenges, it is essential for medispas to adapt and comply with FDA regulations. The surge in weight-loss treatments has brought them closer to traditional healthcare providers, making it vital for them to maintain high standards of care and safety. This shift could be key to ensuring the long-term legitimacy of medispas in a competitive market.