What is the Healthsource Chiropractic Business Associate's obligation regarding the use of PHI for legal responsibilities?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
Business Associate may use PHI for the proper management and administration of the Business Associate or to carry out the legal responsibilities of the Business Associate, (g) Business Associate may disclose PHI for the proper management and administration of Business Associate or to carry out the legal responsibilities of the Business Associate, provided (1) the disclosures are required by law, or (2) Business Associate obtains reasonable assurances from the person or entity to whom the PHI is disclosed that the information will remain confidential and be used or further disclosed only as required by law or for the purposes for which it was disclosed the such person or entity, and the person notified Business Associate of any instances of which it is aware in which the confidentiality of the PHI has been breached, and (h) as otherwise permitted or required by agreement or law.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic FDD, the Business Associate, HealthSource Chiropractic, LLC, is permitted to use or disclose Protected Health Information (PHI) for the proper management and administration of the Business Associate or to fulfill its legal responsibilities. This means Healthsource Chiropractic can utilize PHI for internal administrative tasks and to comply with legal requirements.
However, there are conditions attached to this permission. Healthsource Chiropractic can disclose PHI for these purposes only if (1) the disclosures are required by law, or (2) Healthsource Chiropractic obtains reasonable assurances from the recipient of the PHI that the information will remain confidential. The recipient must agree to use or further disclose the PHI only as required by law or for the purposes for which it was disclosed, and the recipient must notify Healthsource Chiropractic of any known breaches of confidentiality.
This clause ensures that while Healthsource Chiropractic has the right to use PHI for administrative and legal purposes, it must also take precautions to protect the privacy of the information. For a prospective franchisee, this highlights the importance of understanding and adhering to HIPAA regulations and the specific terms outlined in the Business Associate Agreement to avoid potential legal and financial repercussions.