What does the Brightstar Care agreement say about the HITECH Act?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT M
BUSINESS ASSOCIATE AND CONFIDENTIALITY AGREEMENT
("Covered Entity") and BrightStar Franchising, LLC ("BrightStar" or "Business Associate") hereby enter into this Agreement, effective as of Effective Date of the Franchise Agreement (the "Effective Date").
Recitals
- A. BrightStar arranges for certain products and services (the "Services") as a franchisor, to Covered Entity as a franchisee, as set forth in the BrightStar Franchising, LLC Agency Franchise Agreement between Covered Entity and BrightStar ("Franchise Agreement").
- B. The Parties' performance under the Franchise Agreement may or will require Covered Entity to disclose and/or provide to Business Associate private and/or protected health and/or medical information as defined under, and governed by, applicable state law and Individually Identifiable Health Information and/or Electronic Protected Health Information as defined in the Health Insurance Portability and Accountability Act ("HIPAA"), the Health Information Technology for Economic and Clinical Health Act ("HITECH"), and/or regulations promulgated under such laws (state law, HIPAA, and HITECH are hereafter referred to collectively as "Privacy Laws") and may or will require BrightStar to receive, access, review, maintain, retain, modify, record, store, forward, produce, hold, use, create, disclose, and/or destroy such information (the "PHI").
- C. BrightStar's performance of the Services may give rise to certain legal obligations under Privacy Laws and BrightStar may be considered a "business associate" and franchisee may be a "covered entity" as those terms are defined in 45 C.F.R. § 160.103. This Agreement will not apply to relationships between the parties where BrightStar is not considered a "business associate" as defined in 45 C.F.R. 160.103.
Accordingly, the parties hereto ("Parties") agree to the terms and conditions set forth below:
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, the agreement addresses the Health Information Technology for Economic and Clinical Health Act (HITECH) within the context of a Business Associate and Confidentiality Agreement. Brightstar Care, acting as the Business Associate, and the franchisee, referred to as the Covered Entity, acknowledge that their performance under the Franchise Agreement may require the franchisee to disclose protected health information governed by HIPAA, HITECH, and other privacy laws. Brightstar Care's services may create legal obligations under these Privacy Laws, potentially classifying Brightstar Care as a "business associate" and the franchisee as a "covered entity" as defined in federal regulations. This agreement is only applicable when Brightstar Care is considered a business associate under those regulations.
The agreement emphasizes the necessity of protecting private and protected health information, ensuring compliance with applicable state laws, HIPAA, and HITECH. It outlines that Brightstar Care may be required to receive, access, review, maintain, retain, modify, record, store, forward, produce, hold, use, create, disclose, and/or destroy such information. This comprehensive handling of protected health information underscores the importance of adhering to privacy laws in the operation of a Brightstar Care franchise.
For a prospective Brightstar Care franchisee, this means that they must be prepared to handle sensitive health information in accordance with strict legal and regulatory standards. Understanding and complying with HIPAA and HITECH is crucial for the franchisee to avoid potential legal repercussions and maintain the trust of their clients. The franchisee should carefully review the Business Associate and Confidentiality Agreement and seek legal counsel to fully understand their obligations under these laws.