After the termination of the Degree Wellness Services Agreement, what continuing obligation does the Business Associate have regarding PHI?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
to the extent that such changes may affect Business Associate's use or disclosure of PHI.
- (c) Restrictions on Use or Disclosure of PHI. Covered Entity shall notify Business Associate of any restriction to the use or disclosure of PHI that Covered Entity has agreed to in accordance with 45 C.F.R. § 164.522, to the extent that such restriction may affect Business Associate's use or disclosure of PHI.
- (d) Requested Uses or Disclosures of PHI. Except for Data Aggregation or Administrative and administrative activities of Business Associate, Covered Entity shall not request Business Associate to use or disclose PHI in any manner that would not be permissible under the HIPAA Regulations if done by Covered Entity.
5. Term and Termination.
- (a) Term. The term of this Agreement shall be coterminous with the Services Agreement. However, Business Associate shall have a continuing obligation to safeguard the confidentiality of PHI received from Covered Entity after the termination of the Services Agreement.
- (b) Termination Without Cause. Either Party may terminate this Agreement without cause or penalty by the delivery of a written notice from the terminating Party to the other Party.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, after the termination of the Services Agreement, the Business Associate has a continuing obligation to safeguard the confidentiality of Protected Health Information (PHI) received from the Covered Entity.
Specifically, upon termination of the Business Associate Agreement for any reason, the Business Associate must either return or destroy all PHI received from the Covered Entity, or created or received by the Business Associate on behalf of the Covered Entity. The Business Associate must also provide written certification to the Covered Entity that such PHI has been destroyed.
However, if the Business Associate determines that returning or destroying the PHI is not feasible, they must notify the Covered Entity of the conditions that make it unfeasible. In such cases, the Business Associate must continue to protect the PHI under the terms of the Business Associate Agreement and limit further uses and disclosures to only those purposes that make the return or destruction of the PHI unfeasible, for as long as the Business Associate maintains the PHI.