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Medspa Legal & Legislation > Fee split?

We are considering renting a room from a local gym and perfroming a limited number of procedures there while we complete buildout of our spa. The arrangement would call for a portion of any services purchased by gym members to be paid to the gym - is this is violation of fee splitting laws or referral fees?
03.16 | Unregistered CommenterTCS
Without giving you legal advice, I can suggest that often times the key to the legal effect of a transaction is the terminology that is used to define the transaction. For example, rather than calling a payment a "split of a medical fee" the payment could be characterized as a "marketing fee" or simply as rent for the space you are using. If rent is determined by a calculation based on a percentage of total revenue generated it would not be as likely to be characterized as "fee splitting".

Having had a clinic in two gyms I can tell you that it is highly illegal to offer a split with the gym for any insurance based treatments. You will find yourself in court very fast. You cannot base rent on % of income period. It has to be the going rate for your area per square foot.
You can however, offer a marketing payment for each FREE consultation you receive. It cannot be a pre paid plan.
If your just collecting cash, that is another ballpark, much more freedom but alot more work.
Gyms are in it for the money, it is best to have ownership in the gym or you will quickly find your not a priority when they realized your limitations on sending them % dollars.

Drhunterseattle,
Your information about temporary business in local gym caught my eye. I am at the same stage right now and I would be excited to share with you the experiences and problem stories. Would you mind if I could "pick your brain" on this subject outside the discussion board?
You can answer using my e-mail andrzejw@yahoo.com
Your answer is highly appreciated.

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