Is It Legal for You to Own a Telehealth Brand?

Most non-physicians who attempt to enter healthcare run into legal issues because they don't understand the regulatory requirements around medical practice ownership.

The solution is structural: a properly configured MSO (Management Services Organization) model that maintains clear separation between business operations and medical practice.

This article explains the legal framework, why it works, and what compliance looks like in practice.

What You're Actually Doing (Legally)

When you launch a telehealth brand through Medstra, here's what you're doing from a legal perspective:

You're not:

• A doctor
• A medical practice
• Employing physicians
• Prescribing medications
• Practicing medicine

You're building a brand that markets telehealth services to patients.

Think of it like this:

A travel agency doesn't fly planes. They market and sell flights operated by licensed airlines.

You don't provide medical services. You market and sell access to medical services provided by licensed physicians.

This model is well-established across healthcare. Pharmaceutical companies, medical device distributors, and healthcare technology platforms all operate this way.

The Three-Entity Legal Structure

The MSO model uses three separate legal entities, each with distinct roles and responsibilities:

Legal basis: Marketing healthcare services is a legitimate business activity. The key distinction is that you're not practicing medicine or employing physicians.

Legal function: The MSO creates structural separation between business operations and medical practice. This separation is what satisfies state corporate practice of medicine requirements.

Legal function: Physician independence is maintained because they work for a physician-owned entity. This clinical autonomy is central to federal anti-kickback compliance.

"But I'm Making Money When Doctors Prescribe. Isn't That Illegal?"

This is the question every operator asks.

Here's the difference:

The critical point:

If a patient comes in requesting testosterone and the doctor determines they're NOT medically appropriate, the doctor says no.

Does the doctor still get paid? Yes. Same $60.

That's why it's legal. The doctor is being paid for their professional time and medical judgment, not for prescribing.

"What If a Doctor Prescribes to Most Patients?"

Another common concern. Here's the reality:

If doctors are prescribing based on legitimate medical criteria, you're fine.

Most men actually have low testosterone. When properly screened with lab work, a significant percentage genuinely qualify for TRT.

If +80% of patients who request evaluation end up qualifying medically, that's medicine, not kickbacks.

But here's your legal protection:

The doctors don't work for you. They work for the IMG (physician-owned company). The IMG physicians have their own medical licenses on the line. If they overprescribe, they lose their license. They're not going to destroy their career to make you money.

This alignment of incentives, where physicians are motivated to practice sound medicine, is fundamental to the compliance framework.

"Can I Get in Trouble Even Though I'm Not the Doctor?"

This is the real fear.

The answer: No, if the structure is set up correctly.

If there's ever an issue with medical care, regulators investigate the IMG (the physician group). You're a separate entity running a marketing business.

State medical boards regulate physicians and medical practices. You're not a physician. You're not a medical practice. You're not in their jurisdiction.

How Federal Law Views This (OIG Approval)

In June 2025, the U.S. Department of Health and Human Services' Office of Inspector General (OIG) reviewed a telehealth MSO arrangement.

OIG Advisory Opinion No. 25-03

Screenshot from the official OIG Advisory Opinion No. 25-03, issued June 6, 2025.

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The principles they validated:

1. 1Physicians paid at Fair Market Value (industry-standard rates)
2. 2Same payment regardless of outcomes (not tied to prescriptions)
3. 3Written agreements meeting legal requirements
4. 4Not based on referral volume

These are the core principles that any compliant MSO structure should follow.

How State Law Views This (Corporate Practice of Medicine)

Most states have laws prohibiting non-physicians from owning medical practices. It's called Corporate Practice of Medicine (CPOM).

Here's why you're compliant:

• You don't own the medical practice. The IMG (physician-owned company) does.
• You don't employ physicians. The IMG does.
• You don't control medical decisions. The IMG physicians do.

You own a marketing company. That's not regulated by CPOM.

This structure has been validated through 30+ years of use in healthcare: private equity healthcare acquisitions ($150B+ in transactions), hospital-physician partnerships, and retail healthcare operations.

"What's My Actual Legal Role?"

Here's what you are legally:

You're handling the front-end (marketing, enrollment, support). Medstra and IMG handle the back-end (medical, pharmacy, compliance). This division of responsibility is what keeps you legal.

What You Pay For (And Why It's Legal)

When you partner with Medstra, here's what you're paying for:

Why this payment structure is legal: You're paying for services at fair market rates. You're not paying for prescriptions or outcomes. The physician fees are standardized and outcome-independent. This is standard business contracting, compliant with federal and state laws.

Your Legal Protections

Here's what protects you legally:

These seven protections are built into Medstra's structure. You don't have to create them. You inherit them by partnering with Medstra.

What Medstra Provides for Your Legal Protection

Medstra gives you the legal framework that keeps you compliant:

You get legal protection without becoming a compliance expert.

What You Don't Have to Worry About

Because of Medstra's structure, here's what you DON'T have to worry about:

All of that is handled within Medstra's framework. You focus on what you're good at: marketing and building a brand.

The Bottom Line: Is This Legal for You?

You can legally own a telehealth brand as a non-physician because:

1. 1You're not practicing medicine (you're marketing)
2. 2You're not employing physicians (the IMG does)
3. 3You're not controlling medical decisions (physicians are independent)
4. 4You're not paying for prescriptions (you're paying for consultations at FMV)
5. 5The structure has been validated by federal regulators
6. 6The framework has been used in healthcare for 30+ years
7. 7Fortune 500 companies use this same approach

You're not trying to be a doctor. You're not trying to practice medicine. You're building a branded patient acquisition business in healthcare. That's legal. That's what Medstra enables.

Is This Legal? Yes. Here's Your Proof.