Under what condition can the Covered Entity examine the Business Associate's facilities for Degree Wellness?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
To the extent that Covered Entity determines that such examination is necessary to comply with Covered Entity's legal obligation pursuant to HIPAA, the HIPAA Regulations, and the HITECH Act, Covered Entity or its authorized agents or contractors may, at Covered Entity's expense, examine Business Associate's facilities, systems, procedures (including but not limited to review of training procedures for Business Associate's staff) and records as may be necessary for such agents or contractors to certify to Covered Entity the extent to which Business Associate's security safeguards comply with HIPAA, the HIPAA Regulations, the HITECH Act, and this Agreement.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the Covered Entity, Wellness Provider Therapies, P.A., can examine the Business Associate's facilities, systems, procedures, and records if it determines that such an examination is necessary to comply with its legal obligations under HIPAA, the HIPAA Regulations, and the HITECH Act. This examination will be at the Covered Entity's expense.
This means that Degree Wellness franchisees, acting as the Business Associate, must allow the Covered Entity (Wellness Provider Therapies, P.A.) or its authorized agents or contractors to access their facilities and records. This access is for the purpose of certifying the extent to which the franchisee's security safeguards comply with HIPAA, the HIPAA Regulations, the HITECH Act, and the Business Associate Agreement. The examination includes reviewing training procedures for the franchisee's staff.
This condition is in place to ensure that all parties involved in handling Protected Health Information (PHI) are compliant with federal regulations. It is a standard practice in healthcare-related franchises to have such clauses to maintain data privacy and security. The franchisee should be prepared to cooperate with these examinations and maintain thorough records of their compliance efforts. Degree Wellness franchisees should also budget for potential costs associated with addressing any compliance gaps identified during these examinations.