Ketamine Clinics and the Corporate Practice of Medicine in California

Ketamine clinics are increasing in number in the United States and globally. As we described previously, ketamine is a Schedule III drug under the federal Controlled Substances Act, has been approved by the Food and Drug Administration (FDA) for certain medical uses, and may in some cases be used for off-label uses (such as anxiety or depression) by medical professionals. That said, the legal framework surrounding the ownership and operation of ketamine clinics (which involve off-label uses of ketamine) can be extraordinarily complicated and will vary significantly from jurisdiction to jurisdiction.

California is certainly a place where ketamine clinics are prominent. The corporate structures of many ketamine clinics involve a risky dance when it comes to the corporate practice of medicine. Ownership of medical practice in California is highly regulated. There are significant restrictions on who can own a medical practice here; that includes ketamine infusion clinics because only licensed medical practitioners can prescribe and manage ketamine and corresponding treatments.

California law requires that a medical practice be owned by a specific entity (a professional medical corporation) and that a majority of owners of the corporation be physicians with limits on ownership by non-physicians to other medical professionals. There

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