Ownership: Board of Medical Examiners rules require a medical practice to be owned solely by licensed health care professionals, and a general business corporation may employ physicians only in listed settings such as a Department of Health licensed facility, an employee health clinic or an insurer.
Certificate of need: New Jersey has a CON program (N.J.S.A. 26:2H-7) covering hospitals, nursing homes, rehabilitation and extended care facilities, home health agencies and diagnostic and treatment centers, with review of capital expenditures and major medical equipment over $2 million.
Nurse practitioners: AANP classifies New Jersey as reduced practice: APNs prescribe under joint protocols with a collaborating physician that are reviewed and signed at least annually, and controlled substance prescribing requires the protocol to address prior consultation plus six extra pharmacology CE hours.
Who can own a medical clinic in New Jersey
Board of Medical Examiners rules require a medical practice to be owned solely by licensed health care professionals, and a general business corporation may employ physicians only in listed settings such as a Department of Health licensed facility, an employee health clinic or an insurer. Non-physician investors therefore usually either hold a DOH facility license (for example an ambulatory care facility) or contract with a physician-owned practice through a management company that provides only non-professional services.
Sources: law.cornell.edu
Business entity and registration
Physicians practice through a professional corporation, professional association, partnership or LLC composed solely of health care professionals licensed in New Jersey, formed online through the Division of Revenue and Enterprise Services business formation service.
Sources: law.cornell.edu, njportal.com
Certificate of need in New Jersey
New Jersey has a CON program (N.J.S.A. 26:2H-7) covering hospitals, nursing homes, rehabilitation and extended care facilities, home health agencies and diagnostic and treatment centers, with review of capital expenditures and major medical equipment over $2 million. A physician's private practice is not a health care facility, so a typical office needs no CON.
Sources: ncsl.org, law.justia.com
Licenses, registrations and state agencies
Services provided by a physician in private practice are excluded from health care facility licensing, but the Department of Health licenses ambulatory care facilities (primary care, ambulatory surgery, dialysis, imaging and similar outpatient services). New one-operating-room surgical practice registrations are no longer issued; existing surgical practices had to convert to ambulatory care facility licenses, and facilities licensed for surgery must hold CMS-recognized accreditation.
Sources: law.justia.com, law.justia.com, law.cornell.edu
New Jersey-specific requirements to know
Anyone who prescribes or dispenses controlled substances needs a New Jersey CDS registration from the Division of Consumer Affairs in addition to DEA registration, and must check the NJ Prescription Monitoring Program the first time they prescribe a Schedule II drug or opioid for pain to a new patient and quarterly after that. Office-based surgery generally now requires an ambulatory care facility license.
Sources: law.justia.com, law.justia.com, law.justia.com
Agencies you will deal with
- Medical board: New Jersey State Board of Medical Examiners (Division of Consumer Affairs)
- Board of nursing: Board of nursing
- Board of pharmacy: Board of pharmacy
- Business registration: New Jersey Division of Revenue and Enterprise Services (Department of the Treasury)
- Facility licensing: New Jersey Department of Health, Certificate of Need and Licensing
- Medicaid enrollment: New Jersey Medicaid / NJ FamilyCare (NJMMIS)
Nurse practitioners and physician assistants
Nurse practitioners: AANP classifies New Jersey as reduced practice: APNs prescribe under joint protocols with a collaborating physician that are reviewed and signed at least annually, and controlled substance prescribing requires the protocol to address prior consultation plus six extra pharmacology CE hours.
Sources: aanp.org, law.justia.com
Physician assistants: PAs must practice under a physician's supervision at all times, though the physician need not be physically present if they stay reachable by electronic communication.
Sources: law.justia.com
Med spas, injectables and IV therapy in New Jersey
Because a medical practice must be owned solely by licensed health care professionals and a general business corporation may employ physicians only in specific listed settings, a spa owned by non-licensees cannot simply hire a physician as medical director to offer medical services. No Board of Medical Examiners guidance specific to injectables, lasers or IV hydration was confirmed.
Sources: law.cornell.edu, njconsumeraffairs.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 New Jersey
- Choose your structure and check ownership rules. Decide who will own the practice and confirm it fits New Jersey’s corporate practice of medicine rules. Board of Medical Examiners rules require a medical practice to be owned solely by licensed health care professionals, and a general business corporation may employ physicians only in listed settings such as a Department of Health licensed facility, an employee health clinic or an insurer.
- Form the entity with the New Jersey Division of Revenue and Enterprise Services (Department of the Treasury). Physicians practice through a professional corporation, professional association, partnership or LLC composed solely of health care professionals licensed in New Jersey, formed online through the Division of Revenue and Enterprise Services business formation service.
- 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 New Jersey State Board of Medical Examiners (Division of Consumer Affairs). Every physician needs a New Jersey license. Check the board’s rules for any practice registrations, supervision agreements or office requirements before opening.
- Check certificate of need and facility licensing. New Jersey has a CON program (N.J.S.A. 26:2H-7) covering hospitals, nursing homes, rehabilitation and extended care facilities, home health agencies and diagnostic and treatment centers, with review of capital expenditures and major medical equipment over $2 million.
- Register to prescribe. Register with the DEA for controlled substances and complete any New Jersey controlled substance registration and prescription monitoring program enrollment. Anyone who prescribes or dispenses controlled substances needs a New Jersey CDS registration from the Division of Consumer Affairs in addition to DEA registration, and must check the NJ Prescription Monitoring Program the first time they prescribe a Schedule II drug or opioid for pain to a new patient and quarterly after that.
- 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 New Jersey Medicaid / NJ FamilyCare (NJMMIS) and start commercial credentialing early, because payer enrollment often takes months.
- Plan staffing around NP and PA rules. AANP classifies New Jersey as reduced practice: APNs prescribe under joint protocols with a collaborating physician that are reviewed and signed at least annually, and controlled substance prescribing requires the protocol to address prior consultation plus six extra pharmacology CE hours.
- 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 New Jersey
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 New Jersey launch with us →
Sources
- https://www.law.cornell.edu/regulations/new-jersey/N-J-A-C-13-35-6-16
- https://www.njportal.com/DOR/BusinessFormation/
- https://www.ncsl.org/health/certificate-of-need-state-laws
- https://law.justia.com/codes/new-jersey/title-26/section-26-2h-2/
- https://www.aanp.org/advocacy/new-jersey
- https://law.justia.com/codes/new-jersey/title-45/section-45-11-49/
- https://law.justia.com/codes/new-jersey/title-45/section-45-9-27-18/
- https://law.justia.com/codes/new-jersey/title-26/section-26-2h-12/
- https://www.law.cornell.edu/regulations/new-jersey/N-J-A-C-8-43A-1-1
- https://www.njconsumeraffairs.gov/bme/Pages/default.aspx
- https://law.justia.com/codes/new-jersey/title-24/section-24-21-10/
- https://law.justia.com/codes/new-jersey/title-45/section-45-1-46-1/