For Degree Wellness, what must a Business Associate do if they disclose PHI to a third party?

According to Degree Wellness's 2025 Franchise Disclosure Document, if a Business Associate discloses Protected Health Information (PHI) to a third party, they must take specific actions to ensure the confidentiality and security of that information. Prior to making any such disclosure, the Business Associate must obtain satisfactory written assurances from the third party. These assurances must confirm that the third party will hold the PHI as confidential, adhering to the terms outlined in the Business Associate Agreement. The third party can only disclose the PHI as required by law or for the specific purposes for which it was initially disclosed to them.

In addition to obtaining written assurances, the Degree Wellness Business Associate must also secure a written agreement from the third party. This agreement must stipulate that the third party will immediately notify the Business Associate of any breaches of confidentiality of the PHI, assuming the third party becomes aware of such a breach. This requirement ensures a prompt response to any potential security incidents, allowing for timely mitigation and preventing further unauthorized disclosures.

These measures are in place to comply with HIPAA, the HITECH Act, and related regulations, which mandate the protection of sensitive health information. By requiring these assurances and agreements, Degree Wellness aims to maintain the privacy and security of patient data, even when it is shared with third parties for legitimate business purposes. This also ensures that Degree Wellness remains compliant with healthcare regulations and minimizes the risk of potential penalties or legal repercussions associated with data breaches or unauthorized disclosures.