What is the Healthsource Chiropractic Business Associate prohibited from doing regarding the use or disclosure of PHI?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
Security and Privacy provisions of HIPAA, Business Associate will comply with such requirements that apply to Covered Entity in the performance of such obligation(s).
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- Use and Disclosure Rights: 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.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic FDD, the Business Associate is prohibited from using or disclosing Protected Health Information (PHI) in any manner not permissible under HIPAA if done by the Covered Entity, except for specific uses or disclosures outlined in the agreement. The Business Associate may only use or disclose PHI incidentally to performing services required under the Franchise Agreement with the Covered Entity.
Specifically, the Healthsource Chiropractic Business Associate cannot disclose PHI in a way that would violate HIPAA requirements if the Covered Entity did it. They must comply with HIPAA regulations regarding marketing, fundraising, and the sale of PHI. The Business Associate is not allowed to disclose PHI to a health plan for payment or healthcare operations if the patient requests this restriction and pays out-of-pocket for the service. They also cannot receive payment in exchange for PHI, except when the Covered Entity pays them for services rendered.
In practical terms, this means a Healthsource Chiropractic franchisee must be extremely careful about how they handle patient information. They need to ensure their practices align with HIPAA regulations and that they have proper authorization or consent before using or disclosing PHI. This includes being mindful of marketing activities, payment processes, and any data sharing with subcontractors. The franchisee must also ensure that any subcontractors or agents that handle PHI on their behalf agree to the same restrictions and conditions.