What is the Healthsource Chiropractic Business Associate's obligation regarding the receipt of payment for PHI?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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. To the extent Business Associate is to carry out one or more of Covered Entity's obligations under the 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
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, Healthsource Chiropractic, LLC, as the Business Associate, must comply with HIPAA regulations throughout the agreement's term. If Healthsource Chiropractic has access to Protected Health Information (PHI), it must adhere to HIPAA requirements. This obligation extends to all agents, employees, subsidiaries, subcontractors, vendors, and affiliates who receive PHI from Healthsource Chiropractic, ensuring they are also bound by the same HIPAA restrictions through written agreements.
Healthsource Chiropractic, as the Business Associate, cannot use or disclose PHI unless permitted by the agreement or required by law. The agreement does not grant Healthsource Chiropractic any greater rights to PHI than the franchisee (Covered Entity) possesses. If Healthsource Chiropractic is responsible for fulfilling any of the franchisee's obligations under HIPAA's Security and Privacy provisions, it must comply with the requirements applicable to the franchisee in performing those obligations.
In practical terms, this means a Healthsource Chiropractic franchisee must ensure that Healthsource Chiropractic, LLC, and all its related parties, are fully compliant with HIPAA when handling patient information. This includes implementing necessary safeguards to protect the privacy and security of PHI and ensuring that all agreements with these parties include provisions that legally bind them to HIPAA's requirements. Failure to comply with these obligations could result in significant legal and financial repercussions for both the franchisee and Healthsource Chiropractic.