With whom must a Healthsource Chiropractic Business Associate cooperate regarding HIPAA compliance?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
e meaning as those terms in the HIPAA Rules: Breach, Data Aggregation, Designated Record Set, Disclosure, Health Care Operations, Individual, Minimum Necessary, Notice of Privacy Practices, Protected Health Information, Required By Law, Secretary, Security Incident, Subcontractor, Unsecured Protected Health Information, and Use.
- (a) Business Associate. "Business Associate" shall generally have the same meaning as the term "business associate" at 45 CFR 160.103, and in reference to the party to this agreement, shall mean HealthSource Chiropractic, LLC.
- (b) Covered Entity. "Covered Entity" shall generally have the same meaning as the term "covered entity" at 45 CFR 160.103, and in reference to the party to this agreement, shall mean the undersigned franchisee.
Statement of Agreement
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- HIPAA Compliance and Agents: Business Associate hereby agrees to fully comply with the "Business Associate" requirements under HIPAA, throughout the term of this Agreement. Further, Business Associate agrees that to the extent it has access to PHI, Business Associate will fully comply with the requirements of HIPAA and this Agreement with respect to such PHI; and, further, that every agent, employee, subsidiary, subcontractor, vendor and affiliate of Business Associate to who it provides PHI received from, or created or received by Business Associate on behalf of, Covered Entity, will be required to fully comply with HIPAA, and will be bound by written agreement to the same restrictions and terms and conditions as set forth in the Agreement.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, a Healthsource Chiropractic Business Associate must ensure HIPAA compliance with several entities. The Business Associate must comply with HIPAA requirements throughout the agreement's term and ensure that every agent, employee, subsidiary, subcontractor, vendor, and affiliate who receives PHI from the Business Associate also fully complies with HIPAA. These parties must also be bound by a written agreement to the same restrictions, terms, and conditions as set forth in the Business Associate Agreement.
Furthermore, the Business Associate must enter into a business associate agreement that complies with HIPAA requirements with any and all subcontractors to whom PHI is disclosed. This ensures that subcontractors also adhere to HIPAA standards when handling protected health information. The franchisee, defined as the Covered Entity, must also make reasonable efforts to limit any use, disclosure, or request for use or disclosure to the minimum amount necessary to accomplish the intended purpose.
In practical terms, this means a Healthsource Chiropractic franchisee must establish legally binding agreements with anyone who might access patient data through their franchise. This includes not only direct employees but also any third-party services they use for tasks like data storage, marketing, or IT support. Failing to ensure these parties' compliance could expose the franchisee to significant legal and financial penalties under HIPAA.