For Degree Wellness, is the Business Associate allowed to disclose PHI as Required By Law?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Business Associate may disclose PHI (i) for the proper Administrative and administration of Business Associate, (ii) to carry out the legal responsibilities of Business Associate, (iii) as Required By Law, or (iv) for Data Aggregation purposes for the Health Care Operations of Covered Entity.
Business Associate shall not disclose PHI in any manner that would constitute a violation of the Privacy Rule or the HITECH Act if so disclosed by Covered Entity.
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.
Business Associate agrees to limit its disclosure of PHI to the minimum amount necessary to accomplish the intended purpose of the disclosure.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the Business Associate is permitted to disclose Protected Health Information (PHI) if it is required by law. Specifically, the Business Associate Agreement outlines the circumstances under which the Business Associate can disclose PHI, including disclosures to carry out legal responsibilities or when mandated by law. This allowance ensures that Degree Wellness franchisees, acting as Business Associates, can comply with legal and regulatory requirements concerning patient information.
However, the agreement also places significant restrictions on the disclosure of PHI. The Business Associate must obtain written assurances from any third party receiving PHI that the information will be kept confidential and disclosed only as required by law or for the specific purpose for which it was disclosed. Additionally, the third party must agree to immediately notify the Business Associate of any confidentiality breaches. These stipulations are designed to protect patient privacy and maintain compliance with HIPAA and related regulations.
Furthermore, Degree Wellness requires the Business Associate to limit PHI disclosures to the minimum amount necessary to achieve the intended purpose. This principle of "minimum necessary" is a cornerstone of HIPAA compliance, aiming to prevent excessive or unnecessary sharing of sensitive health information. The Business Associate must also avoid using or disclosing PHI in ways that would violate the Privacy Rule or the HITECH Act if done by the Covered Entity, reinforcing the importance of adhering to privacy standards.
In summary, while Degree Wellness permits the Business Associate to disclose PHI when legally obligated, it imposes stringent conditions and limitations to safeguard patient privacy and ensure compliance with applicable laws and regulations. Franchisees must carefully adhere to these guidelines to avoid potential legal and financial repercussions associated with HIPAA violations.