Ownership: Under Michigan's Business Corporation Act, every shareholder of a professional corporation must be licensed to provide the same professional service, and physicians may combine only with other physicians, osteopaths, podiatrists, chiropractors and (with limits) PAs.
Certificate of need: Michigan's CON program (Public Health Code Part 222, run by MDHHS) covers clinical services including surgical services in a freestanding surgical outpatient facility, fixed and mobile MRI and CT, PET, cardiac catheterization, lithotripsy and radiation therapy, plus covered capital expenditures of $2.5 million or more (inflation adjusted).
Nurse practitioners: AANP classifies Michigan as restricted practice; APRNs may prescribe non-scheduled drugs without physician delegation, but prescribing controlled substances requires physician delegation.
Who can own a medical clinic in Michigan
Under Michigan's Business Corporation Act, every shareholder of a professional corporation must be licensed to provide the same professional service, and physicians may combine only with other physicians, osteopaths, podiatrists, chiropractors and (with limits) PAs. Physician-owned PCs and PLLCs are typical, and non-physician investors generally use management services arrangements rather than direct ownership of the practice.
Sources: legislature.mi.gov, legislature.mi.gov
Business entity and registration
Physicians usually form a professional corporation (P.C.) under Chapter 2A of the Business Corporation Act or a professional LLC. Entities are formed with the LARA Corporations Division, online through the MiBusiness Registry Portal; Michigan's Secretary of State does not handle business formation.
Sources: legislature.mi.gov, michigan.gov
Certificate of need in Michigan
Michigan's CON program (Public Health Code Part 222, run by MDHHS) covers clinical services including surgical services in a freestanding surgical outpatient facility, fixed and mobile MRI and CT, PET, cardiac catheterization, lithotripsy and radiation therapy, plus covered capital expenditures of $2.5 million or more (inflation adjusted). A physician practice that adds CT, MRI or an ASC needs CON review, though routine office care does not.
Sources: legislature.mi.gov, michigan.gov, ncsl.org
Licenses, registrations and state agencies
LARA licenses health facilities listed in the Public Health Code, including freestanding surgical outpatient facilities (ASCs), hospitals, hospices, nursing homes and freestanding birth centers. The FSOF definition excludes the office of a physician or other private practice office, and there is no state license category for ordinary physician offices or urgent care clinics in that list.
Sources: legislature.mi.gov, legislature.mi.gov
Michigan-specific requirements to know
Michigan requires a state controlled substance license from LARA, with a separate license for each principal place of practice where controlled substances are prescribed or dispensed. Prescribers must register with MAPS, review a MAPS report before prescribing or dispensing more than a 3-day supply of a Schedule 2 to 5 drug, and have a bona fide prescriber-patient relationship (MCL 333.7303a). Adding CT, MRI, PET or outpatient surgery requires CON approval.
Sources: legislature.mi.gov, legislature.mi.gov, legislature.mi.gov
Agencies you will deal with
- Medical board: Michigan Board of Medicine (LARA; osteopathic physicians are licensed by the separate Board of Osteopathic Medicine and Surgery)
- Board of nursing: Board of nursing
- Board of pharmacy: Board of pharmacy
- Business registration: Michigan Department of Licensing and Regulatory Affairs (LARA), Corporations Division
- Facility licensing: Michigan LARA, Bureau of Community and Health Systems
- Medicaid enrollment: Michigan Medicaid (MDHHS)
Nurse practitioners and physician assistants
Nurse practitioners: AANP classifies Michigan as restricted practice; APRNs may prescribe non-scheduled drugs without physician delegation, but prescribing controlled substances requires physician delegation.
Sources: storage.aanp.org, legislature.mi.gov
Physician assistants: Michigan PAs may practice only under a signed practice agreement with a participating physician that sets out communication, availability and decision-making, names an alternate physician, and requires the physician to verify the PA's credentials (MCL 333.17047).
Sources: legislature.mi.gov
Med spas, injectables and IV therapy in Michigan
Michigan has no med spa specific statute that we found. Cosmetic injections, lasers and IV therapy are medical acts that a physician (or an NP or PA within scope) may perform or delegate under MCL 333.16215 to a licensed or unlicensed person qualified by training, under the licensee's supervision, but not acts that require the licensee's own skill and judgment; boards may restrict delegation further by rule. Ownership follows the professional corporation limits.
Sources: legislature.mi.gov, legislature.mi.gov
Planning an aesthetic or IV business? See how to start a med spa and how to start an IV therapy business.
Step-by-step checklist in Michigan
- Choose your structure and check ownership rules. Decide who will own the practice and confirm it fits Michigan’s corporate practice of medicine rules. Under Michigan's Business Corporation Act, every shareholder of a professional corporation must be licensed to provide the same professional service, and physicians may combine only with other physicians, osteopaths, podiatrists, chiropractors and (with limits) PAs.
- Form the entity with the Michigan Department of Licensing and Regulatory Affairs (LARA), Corporations Division. Physicians usually form a professional corporation (P.C.) under Chapter 2A of the Business Corporation Act or a professional LLC.
- Get federal numbers. Apply for an EIN from the IRS, then a Type 2 NPI for the practice and Type 1 NPIs for each clinician through NPPES.
- Confirm licenses with the Michigan Board of Medicine (LARA; osteopathic physicians are licensed by the separate Board of Osteopathic Medicine and Surgery). Every physician needs a Michigan license. Check the board’s rules for any practice registrations, supervision agreements or office requirements before opening.
- Check certificate of need and facility licensing. Michigan's CON program (Public Health Code Part 222, run by MDHHS) covers clinical services including surgical services in a freestanding surgical outpatient facility, fixed and mobile MRI and CT, PET, cardiac catheterization, lithotripsy and radiation therapy, plus covered capital expenditures of $2.5 million or more (inflation adjusted).
- Register to prescribe. Register with the DEA for controlled substances and complete any Michigan controlled substance registration and prescription monitoring program enrollment. Michigan requires a state controlled substance license from LARA, with a separate license for each principal place of practice where controlled substances are prescribed or dispensed.
- Set up lab, safety and privacy basics. Get a CLIA certificate if you will run any lab tests, including waived tests, and put HIPAA privacy and security and OSHA policies in place.
- Enroll with Medicare, Medicaid and insurers. Enroll in Medicare through PECOS, enroll with Michigan Medicaid (MDHHS) and start commercial credentialing early, because payer enrollment often takes months.
- Plan staffing around NP and PA rules. AANP classifies Michigan as restricted practice; APRNs may prescribe non-scheduled drugs without physician delegation, but prescribing controlled substances requires physician delegation.
- Launch your marketing before opening day. Claim your Google Business Profile, publish a website with online booking and start ads and content four to eight weeks before you open, so the schedule is not empty on day one.
The national steps are explained in more detail in our guide to how to start a medical clinic, and costs are broken down in how much it costs to start a clinic.
Marketing a new clinic in Michigan
New clinics usually fail on cash flow before they fail on care. The fastest fix is patients booked before opening day: a complete Google Business Profile, a website with online booking, local search ads and a few weeks of social content showing the team and the space. We run that launch for new clinics and keep it going once the doors open.
Plan your Michigan launch with us →
Sources
- https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-450-1284
- https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-450-1285
- https://www.michigan.gov/lara/bureau-list/cscl/corps
- https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-333-22203
- https://www.michigan.gov/mdhhs/doing-business/providers/certificate-of-need
- https://www.ncsl.org/health/certificate-of-need-state-laws
- https://storage.aanp.org/www/documents/no-index/state-fact-sheets/michigan.pdf
- https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-333-17212
- https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-333-17047
- https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-333-20106
- https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-333-20104
- https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-333-16215
- https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-333-7303
- https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-333-7303a