For Healthsource Chiropractic, what is the Business Associate prohibited from doing with PHI under the agreement?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
Business Associate agrees that it shall not use or disclose PHI except as permitted under this Agreement or as required by law. Business Associate acknowledges that this Agreement does not in any manner grant Business Associate any greater rights than Covered Entity enjoys, nor shall it be deemed to permit or authorize Business Associate to use or further
disclose PHI in a manner that would otherwise violate the requirements of HIPAA if done by Covered Entity. Business Associate shall comply with HIPAA and its applicable regulations as it pertains to marketing, fundraising and/or the sale of PHI. Business Associate shall not disclose PHI to a health plan for payment or health care operations purposes if the patient has requested this special restriction and has paid out of pocket in full for the health care item or service to which the PHI solely relates. Business Associate shall not directly or indirectly receive payment or other consideration in exchange for PHI, except as permitted under HIPAA; however, this prohibition shall not affect payment from Covered Entity to Business Associate for services provided by Business Associate.
Required or Permitted Uses: Business Associate shall not and Covered Entity shall not request Business Associate to - use or disclose PHI in any manner that would not be permissible under HIPAA if done by Covered Entity, except for any specific uses or disclosures set forth below.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, the Business Associate, which in this case is HealthSource Chiropractic, LLC, is restricted in how it uses and discloses Protected Health Information (PHI). Specifically, Healthsource Chiropractic, LLC, as the Business Associate, cannot use or disclose PHI in any manner that would violate HIPAA regulations if the Covered Entity (the franchisee) were to do it.
Healthsource Chiropractic, LLC must also comply with HIPAA regulations regarding marketing, fundraising, and the sale of PHI. If a patient requests a special restriction and pays out-of-pocket for a healthcare item or service, Healthsource Chiropractic, LLC cannot disclose PHI to a health plan for payment or healthcare operations related to that item or service. Furthermore, Healthsource Chiropractic, LLC is prohibited from receiving payment or other consideration in exchange for PHI, except when it's a payment from the franchisee for services rendered by Healthsource Chiropractic, LLC.
In essence, Healthsource Chiropractic, LLC's use and disclosure of PHI must align with HIPAA regulations and cannot exceed the rights of the franchisee (Covered Entity) unless explicitly permitted in the agreement. This ensures patient privacy and compliance with healthcare regulations.