Is the Business Associate of Degree Wellness allowed to sell PHI?

According to Degree Wellness's 2025 Franchise Disclosure Document, the Business Associate is explicitly prohibited from selling Protected Health Information (PHI). The agreement states that the Business Associate must adhere to HIPAA regulations, which include not selling PHI as outlined in 45 C.F.R. § 164.502. This restriction is in place to protect patient privacy and comply with federal law.

This prohibition has significant implications for a Degree Wellness franchisee. It means that the franchisee, acting as a Business Associate, cannot generate revenue by selling patient data. Any violation of this rule could result in severe penalties, including fines and legal repercussions, under HIPAA and related regulations. Therefore, franchisees must ensure strict compliance with this provision.

Furthermore, the Business Associate Agreement emphasizes the importance of data security and privacy. It requires the implementation of safeguards to prevent unauthorized use or disclosure of PHI. This includes administrative, physical, and technical safeguards to protect the confidentiality, integrity, and availability of electronic PHI. Degree Wellness franchisees must invest in and maintain these safeguards to avoid breaches and maintain patient trust.

In summary, the Degree Wellness franchise agreement strictly prohibits the sale of PHI by the Business Associate. This requirement is a critical component of HIPAA compliance and is essential for protecting patient privacy and avoiding legal penalties. Prospective franchisees should carefully review and understand all aspects of the Business Associate Agreement to ensure they can meet these obligations.