What assurances must a Healthsource Chiropractic Business Associate obtain from a person or entity to whom PHI is disclosed?

According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, a Business Associate may disclose Protected Health Information (PHI) for the proper management and administration, or to fulfill legal responsibilities. However, the Business Associate must first obtain reasonable assurances from the recipient. These assurances must guarantee that the information will remain confidential and be used or further disclosed only as required by law or for the purposes for which it was originally disclosed. Furthermore, the recipient must notify the Business Associate of any known breaches in the confidentiality of the PHI.

In practice, this means that if a Healthsource Chiropractic franchisee (acting as a Business Associate) needs to share patient information with, for example, a third-party IT vendor for system maintenance, the franchisee must have a formal agreement in place. This agreement needs to stipulate that the vendor will keep the data confidential, only use it for the specific maintenance tasks, and report any data breaches immediately. This requirement ensures that patient privacy is protected even when data is shared with external parties.

The FDD also states that Business Associates must develop and use appropriate administrative, procedural, physical, and electronic safeguards in accordance with HIPAA. They must also comply with the Security and Privacy provisions of HIPAA with respect to electronic PHI to prevent misuse or disclosure of PHI. Franchisees must notify the Covered Entity (the franchisor) of the location of any PHI disclosed. These safeguards are crucial for maintaining the integrity and confidentiality of patient data and avoiding potential legal and financial repercussions associated with HIPAA violations.

Prospective Healthsource Chiropractic franchisees should carefully review the HIPAA Business Associate Agreement and related provisions in the FDD. Understanding these requirements is essential for ensuring compliance and protecting patient information. Franchisees should also consult with legal counsel to ensure their practices align with HIPAA regulations and the specific terms outlined in the franchise agreement.