Colorado lawmakers are reviewing House Bill 1249 (HB 1249), a bill that could significantly change who is allowed to own medical-aesthetic businesses in the state. Sponsored by Representatives Ryan Gonzalez and Naquetta Ricks, the bill was considered by the House Committee on Health & Human Services on March 18, 2026.
What’s at Stake
Currently, Colorado limits ownership of medical practices to licensed physicians, with physician assistants allowed to hold a minority stake. General business entities cannot employ physicians, and traditional medical practices are tightly regulated.
HB 1249 would create a new type of medical-aesthetic professional corporation with expanded ownership possibilities. Under the proposed rules, licensed estheticians, cosmetologists, registered nurses, licensed practical nurses, advanced practice registered nurses, and physician assistants could hold ownership stakes alongside physicians. The bill does not set minimum or maximum ownership percentages, giving practices more flexibility in structuring ownership.
Uncertainty Around Definitions
The legislation does not clearly define what qualifies as a medical-aesthetic service. While Colorado’s medical board provides a general definition for practice delegation purposes, it leaves ambiguity around certain services, such as IV therapy or weight management. Because administrative rules can change over time, the scope of eligibility for expanded ownership could shift, and future amendments to the bill may clarify these details.
Why It Matters for Practices
For medical-aesthetic providers, this bill could open doors for collaboration and investment. Non-physician professionals could gain a stake in the business side of practices, while physicians would continue to control clinical decisions. This flexibility may help specialized practices grow, attract talent, and offer more innovative services without compromising care quality.
A Broader National Trend
Colorado isn’t alone in rethinking ownership restrictions. Across the U.S., states are increasingly exploring ways to allow non-physician professionals to participate in practice ownership while preserving physician oversight. HB 1249 reflects a growing recognition of evolving healthcare and business models in specialized care.
What Happens Next
HB 1249 remains under committee review. Providers and investors in Colorado’s medical-aesthetic space should monitor its progress closely, as the bill could reshape ownership structures and business strategies in this growing sector.
The Bottom Line
If passed, HB 1249 would mark a significant step toward modernizing ownership rules in Colorado’s medical-aesthetic industry. By allowing a wider range of professionals to invest in practices, the bill could support growth, collaboration, and innovation while maintaining physician oversight where it matters most.
Disclaimer: This content is for informational purposes only and does not constitute legal advice. Ownership regulations may change, and practices should consult a qualified healthcare attorney or compliance expert to ensure adherence to current Colorado laws and requirements.
Source:
Moeller, M. (2026, March 12th). COLORADO Bill Would Expand Medical-Aesthetic Ownership. American Med Spa Association. https://americanmedspa.org/news/colorado-bill-would-expand-medical-aesthetic-ownership
