What agreement must the Business Associate of Degree Wellness obtain from a third party before disclosing PHI?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, if Business Associate discloses PHI to a third party, Business Associate must obtain, prior to making any such disclosure, (i) satisfactory written assurances from such third party that the PHI will be held as confidential as provided pursuant to this Agreement and only disclosed as Required By Law or for the purposes for which it was disclosed to such third party, and (ii) a written agreement from such third party to immediately notify Business Associate of any breaches of confidentiality of the PHI, to the extent such third party has obtained knowledge of such breach.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, if the Business Associate discloses Protected Health Information (PHI) to a third party, they must first obtain two written agreements. The first is a written assurance from the third party, ensuring the PHI will be held confidential, adhering to the standards outlined in the agreement, and only disclosed as legally required or for the specific purposes for which it was initially disclosed. The second is a written agreement from the third party to immediately notify the Business Associate of any confidentiality breaches involving the PHI, should the third party become aware of such breaches.
This requirement ensures that PHI is handled with utmost care and remains protected even when shared with other entities. It places a responsibility on the Business Associate to vet and secure commitments from any third party receiving PHI, aligning with HIPAA regulations and the HITECH Act. This process helps to maintain the integrity and privacy of patient information, reducing the risk of unauthorized disclosures or data breaches.
For a prospective Degree Wellness franchisee, this means understanding and implementing these safeguards is crucial. Before sharing PHI with any third-party vendor or service provider, the franchisee must ensure these agreements are in place. Failure to do so could result in breaches of patient confidentiality, leading to legal and financial repercussions. Degree Wellness provides a Business Associate Agreement as part of its franchise agreement to help franchisees comply with these requirements.
It is important for franchisees to consult with legal counsel to ensure their practices fully comply with all applicable laws and regulations regarding PHI. Additionally, franchisees should maintain thorough records of all agreements and disclosures to demonstrate their commitment to protecting patient privacy.