Med Spa Hit With $25,000 Penalty Over Unauthorized Drugs

An Ohio med spa’s recent $25,000 penalty is drawing attention to the risks and responsibilities involved in the fast-growing market for medical aesthetics, a $26.2 billion industry that grew 12% in the last year alone. A state investigation found that the owners of Pure Health Aesthetics & Wellness in Delaware County were not licensed to prescribe drugs but that they did so for patients and themselves over an eight-month period, 10TV News reported Sept. 8. The Ohio Board of Pharmacy suspended the business’s drug distributor license in June and reinstated it after a settlement that included the $25,000 penalty and an agreement to provide additional staff training.

According to the pharmacy board’s investigation, the owners used staff nurses’ prescriber numbers to order peptides and other medications, including some that were legal and others that were not FDA-approved. One patient reportedly lost consciousness after taking the drugs, 10TV reported.

“These are supposed to be professionals who use regulated drugs,” said Danion Beckford, Manager, Professional Liability, Burns & Wilcox, Canada Division, Toronto, Ontario. “The fact that they allegedly ordered these prescription medications and used them goes against everything they should be standing for as a trusted professional.”

Insurance coverage for the penalty, legal defense, injury-related claims, and other expenses would depend on the specifics of the facility’s Healthcare Liability Insurance policies such as Medical Malpractice Insurance.

“There is no set policy language between all the different insurance carriers. You want to make sure you are covered for all of the services being offered,” said Nick Esty, Broker, Professional Liability, Burns & Wilcox, Boston, Massachusetts. “You have to read the language of the policy including the endorsements and exclusions to know what is being covered and not covered.”

‘Anything could go wrong’

The Ohio facility is one of more than 30 med spas in the state that have had their drug distributor licenses suspended at some point since January 2025, 10TV reported. In New York, a state investigation inspected 223 businesses offering med spa services and cited 87 for possible violations, including the unlawful practice of medicine, the Times Union reported in January.

“When you are improperly ordering and using prescription drugs, anything could go wrong,” Beckford said. “It only takes one individual to get hurt to put in a claim.”

The global medical spa market is projected to reach $26.2 billion in 2026, up from an estimated $23.29 billion in 2025, according to a June 2026 report from Mordor Intelligence. As the industry grows, some operators are not following regulations on medical services, Esty said.

“Because the industry is so rapidly growing, we are seeing some spas playing fast and loose with the rules looking to expand and add new services,” he said. “That is leading to some scenarios like this where services are being performed in an unsafe manner due to improperly trained staff or improperly sourced products.”

A med spa’s Medical Malpractice Insurance, a form of Professional Liability Insurance, can respond to patient injury claims arising from treatments or services. Assessing a facility’s risks and the type of coverage they need starts with reviewing the services offered, the products used, and the staff performing the procedures, Esty explained.

“How are they sourcing their products?” he said. “What is their facility licensed to do? Do they have the properly licensed and trained staff to perform the procedures they’re offering?”

When treatment leads to injury

Patient injuries related to med spa treatments can lead to negligence lawsuits against facilities and their providers. In September 2025, a patient sued a South Carolina skin treatment center over allegations that a laser procedure performed by untrained staff caused severe burns and scarring, The Sun News reported. The following month, a patient sued an Atlanta doctor and her company over claims that a chemical peel caused second-degree burns and permanent scarring, the Miami Herald reported.

Med spas have also been sued over the use of unapproved medications. As these facilities offer more medical procedures, failure to follow clinical standards can expose patients to potential injuries, Esty said.

“We are seeing more of these places performing actual medical procedures that should have the standard of care of medical professionals in a clinical environment,” he said. “There is a real threat of bodily injury if they are not doing things by the book and do not have the correct medical professionals involved.”

While a med spa’s Commercial General Liability (CGL) Insurance is important for responding to risks such as slip-and-falls on the premises, Medical Malpractice Insurance is essential for facilities that provide injections, laser treatments, and other med spa services. When a facility is sued, this type of insurance can help pay for legal defense, settlements, and other costs.

“If anything happens with your services, you are not going to be covered if you only have CGL Insurance,” Beckford pointed out.

When seeking coverage, med spa owners may need to provide information on who will perform treatments, their training, and the medical oversight involved. “The first thing we are going to look at is the intention of their service,” he said. “We want to make sure that they have experience in the field and have done the necessary training.”

Review policies as services evolve

When a med spa adds or changes the services it provides, its insurance policies should be reviewed to ensure they still meet the business’s needs. Esty said he recently placed coverage for a spa and salon that added microneedling with a topical stem cell product after its previous carrier declined to cover the procedure.

“Maybe they start out as a simple day spa with massages, lashes, and nails, but then they start offering injectables or laser treatments,” he said. “You want to make sure that is going to be covered.”

Where treatments take place — such as at popular “Botox parties” held in private homes — can also impact coverage, Esty said. For example, “not all policies are going to provide coverage for services being provided off-site,” he said.

The sensitive data contained in patient records and online portals can make med spas a target for cyberattacks, making Cyber & Privacy Liability Insurance a key consideration, while the use of before-and-after photos and testimonials in med spa marketing materials can warrant Personal and Advertising Injury Coverage.

Following a lawsuit or regulatory penalty, med spa owners should document the changes they have made to prevent further incidents, Beckford said. “What has been put in place by this company to deter any similar claims from happening in the future?” he said. “We want to know that they have taken it seriously.”