Is a Healthsource Chiropractic Business Associate allowed to receive payment in exchange for PHI?

According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, a Healthsource Chiropractic Business Associate is generally prohibited from directly or indirectly receiving payment or other consideration in exchange for Protected Health Information (PHI). However, there is an exception to this rule: this prohibition does not affect payments from the Covered Entity (the franchisee) to the Business Associate (Healthsource Chiropractic) for services that the Business Associate provides. This is in accordance with HIPAA regulations.

This means that while a franchisee cannot sell or receive direct compensation for patient health information, Healthsource Chiropractic itself can still receive payments from the franchisee for the services they provide as part of the franchise agreement. This is a critical distinction, as it ensures that Healthsource Chiropractic can continue to operate and provide support to its franchisees without violating HIPAA regulations.

It is important for prospective Healthsource Chiropractic franchisees to understand these regulations and how they apply to their business. They should ensure they fully comply with HIPAA and all related agreements to avoid any potential legal issues. Franchisees should also be aware of the specific circumstances under which they are permitted to use or disclose PHI, as outlined in the franchise agreement and relevant regulations.