For Degree Wellness, what is the Business Associate required to protect regarding the confidentiality, integrity, and availability of ePHI?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Business Associate agrees to use appropriate safeguards to prevent use or disclosure of PHI other than as provided for by this Agreement and to implement administrative, physical, and technical safeguards that reasonably and appropriately protect the confidentiality, integrity, and availability of the ePHI that it creates, receives, maintains, or transmits on behalf of Covered Entity.
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.
- (f) Reporting of Unauthorized Uses or Disclosures and Security Incidents.
Business Associate agrees to report to Covered Entity in writing any access, use or disclosure of PHI not provided for or permitted by this Agreement and, any Security Incidents of which Business Associate (or Business Associate's employee, officer or agent) becomes aware.
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 must implement administrative, physical, and technical safeguards to reasonably and appropriately protect the confidentiality, integrity, and availability of electronic Protected Health Information (ePHI) that it creates, receives, maintains, or transmits on behalf of the Covered Entity. This requirement stems from the need to comply with HIPAA regulations and the HITECH Act.
This means that Degree Wellness franchisees must ensure that ePHI is not improperly disclosed, altered, or made inaccessible. This involves establishing policies and procedures, implementing physical security measures (like restricted access to areas where ePHI is stored), and employing technical safeguards (such as encryption and access controls) to secure the data. The franchisee is also directly responsible for complying with the HIPAA Security Rule, including specific sections outlined in the FDD.
For a prospective Degree Wellness franchisee, this translates into a significant responsibility to understand and implement robust data protection measures. Failure to adequately protect ePHI can result in legal and financial penalties, as well as damage to the reputation of both the franchisee and the Degree Wellness brand. Franchisees should carefully review the HIPAA Security Rule requirements and seek expert guidance to ensure compliance.
Furthermore, the franchisee is obligated to report any unauthorized access, use, or disclosure of PHI, as well as any security incidents, to the Covered Entity in writing. This reporting requirement underscores the importance of vigilance and proactive monitoring to detect and address potential breaches or security lapses promptly.