Page 12 - Katten Kattwalk and Kattison Avenue - Winter 2026 - Issue 5

Med Spas at the Intersection of Beauty, Wellness and Law (continued)
Business Trends: Rapid Growth, Aggregation and
New Service Lines
The med spa sector has expanded dramatically over
the last decade, supported by consumer demand for
minimally invasive procedures and the normalization
of “maintenance” aesthetics. Analysts continue to
project double digit annual growth. Private equity
and growth capital investment have accelerated, with
billions deployed across hundreds of transactions,
fueling multi location platforms, franchising and
roll up strategies. Investors favor playbooks that
centralize non clinical functions (marketing, revenue
cycle, human resources and procurement) while
leaving clinical control to licensed professionals.
Operators are diversifying service lines (e.g., energy
based skin devices, hair restoration, IV hydration,
wellness injections and GLP 1 related programs)
and experimenting with recurring revenue models,
memberships and subscription maintenance plans.
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Digital front doors (e.g., virtual consults, intake
assisted by artificial intelligence and e-commerce for
skincare) complement brick and mortar footprints.
At the same time, payor exposure remains limited
because most med spa services are cash pay, which
can simplify revenue but places heightened scrutiny
on pricing transparency, refund policies and consumer
protection compliance.
US Legal Landscape: Ownership, Delegation,
Advertising and Privacy
Regulation is largely state-based and evolving. Four
themes dominate:
1. Corporate practice and ownership. Many states
enforce the corporate practice of medicine
(CPOM), restricting who can own or control
entities that deliver medical services. In strict
CPOM states, physician ownership is required
for medical practices, and unlicensed persons