For Degree Wellness, can the Business Associate disclose PHI to carry out its legal responsibilities?
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 Agreement outlines the conditions under which a Business Associate can disclose Protected Health Information (PHI). Specifically, the Business Associate may disclose PHI to carry out its legal responsibilities. However, this disclosure must be limited to the minimum amount necessary to accomplish the intended purpose.
This provision ensures that Degree Wellness franchisees, acting as Business Associates, can fulfill their legal obligations while still adhering to HIPAA regulations. It also mandates that the Business Associate cannot disclose PHI in any manner that would violate the Privacy Rule or the HITECH Act if the Covered Entity (Wellness Provider Therapies, P.A.) were to do so. If the Business Associate discloses PHI to a third party, they must obtain written assurances that the third party will keep the PHI confidential and notify the Business Associate of any confidentiality breaches.
This section of the agreement balances the need for legal compliance with the imperative to protect patient privacy. Degree Wellness franchisees must understand these obligations to avoid potential penalties associated with improper PHI disclosure. The agreement also specifies that the Business Associate must limit its disclosure of PHI to the minimum amount necessary to achieve the intended purpose, reinforcing the principle of data minimization.