What is the Business Associate of Degree Wellness directly responsible for regarding HIPAA Security Rule?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
In accordance with 42 U.S.C. § 17931 of the HITECH Act, Business Associate shall be directly responsible for full compliance with the policies and procedures and documentation requirements of
the HIPAA Security Rule, including, but not limited to, 45 C.F.R. §§ 164.308, 164.310, 164.312, 164.314 and 164.316.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, as a Business Associate, the franchisee is directly responsible for full compliance with the policies, procedures, and documentation requirements of the HIPAA Security Rule. This includes adherence to 45 C.F.R. §§ 164.308, 164.310, 164.312, 164.314 and 164.316.
This means that the Degree Wellness franchisee must implement and maintain administrative, physical, and technical safeguards to protect the confidentiality, integrity, and availability of electronic Protected Health Information (ePHI) that they create, receive, maintain, or transmit on behalf of the Covered Entity (Wellness Provider Therapies, P.A.). These safeguards are essential to prevent unauthorized access, use, or disclosure of PHI, and to ensure that all electronic systems and data are secure.
For a prospective Degree Wellness franchisee, this signifies a substantial responsibility. They must invest in appropriate security measures, train staff on HIPAA compliance, and maintain thorough documentation of their security practices. Failure to comply with the HIPAA Security Rule can result in significant penalties, making it crucial for franchisees to prioritize and diligently manage their HIPAA compliance obligations.