For Degree Wellness, can the Business Associate use PHI to carry out its legal responsibilities?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as otherwise limited in this Agreement, Business Associate may use PHI (i) for the proper Administrative and administration of Business Associate, (ii) to carry out the legal responsibilities of Business Associate, or (iii) for Data Aggregation purposes for the Health Care Operations of Covered Entity.
Business Associate shall not use PHI in any manner that would constitute a violation of the Privacy Rule or the HITECH Act if so used by Covered Entity.
Business Associate agrees to limit its use of PHI to the minimum amount necessary to accomplish the intended purpose of the use.
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 permitted uses of Protected Health Information (PHI). The agreement states that the Business Associate may use PHI to carry out its legal responsibilities. However, Degree Wellness specifies that the Business Associate must not use 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. This means the Business Associate's use of PHI is subject to the same restrictions as the Covered Entity.
Degree Wellness also requires the Business Associate to limit its use of PHI to the minimum amount necessary to accomplish the intended purpose. This aligns with the principle of data minimization, a key aspect of HIPAA compliance. The agreement emphasizes that the Business Associate is responsible for safeguarding PHI and must implement administrative, physical, and technical safeguards to protect the confidentiality, integrity, and availability of electronic PHI (ePHI).
Furthermore, the Business Associate must report any unauthorized access, use, or disclosure of PHI, as well as any security incidents, to the Covered Entity in writing. This ensures that any potential breaches are promptly addressed. The Covered Entity also has the right to examine the Business Associate's facilities, systems, procedures, and records to certify compliance with HIPAA, the HIPAA Regulations, and the HITECH Act.
In summary, while Degree Wellness permits the Business Associate to use PHI to fulfill its legal responsibilities, this permission is subject to significant limitations and safeguards to ensure compliance with HIPAA and related regulations. A prospective franchisee should carefully review the Business Associate Agreement and understand their obligations regarding the use and protection of PHI.