What is the Healthsource Chiropractic Business Associate's obligation regarding the use of PHI for the proper management and administration of the Business Associate?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
Business Associate agrees that it is permitted to use or disclose PHI only as follows: (a) upon obtaining the authorization of the patient to whom such information pertains in accordance with 45 C.F.R. 164.502 (a)(1)(iv) and 164.508, (b) upon obtaining the consent of a patient to whom such information pertains, if the use or disclosure is for purposes of treatment, payment, or health care operations, (c) without an authorization or consent, if in accordance with 45 C.F.R. 164.506, 164.510, 164.512, 164.514(e), 164.514(f), 164.514(g), (d) Business Associate may use PHI for data aggregation services relating to the health care operations of Covered Entity, (e) Business Associate is authorized to use PHI to de-identify the PHI, (f) 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, which in this case is HealthSource Chiropractic, LLC, is permitted to use Protected Health Information (PHI) for the proper management and administration of its business operations or to fulfill its legal responsibilities. This means HealthSource Chiropractic can utilize patient information to manage its internal affairs and ensure compliance with the law.
However, there are conditions attached to this usage. HealthSource Chiropractic can disclose PHI for its management and administration or to meet legal obligations only if such disclosures are mandated by law. Alternatively, HealthSource Chiropractic must obtain reasonable assurances from the recipient of the PHI that the information will remain confidential. The recipient can only use or further disclose the PHI as required by law or for the specific purposes for which it was initially disclosed. Additionally, the recipient must notify HealthSource Chiropractic of any known breaches in the confidentiality of the PHI.
These stipulations ensure that while HealthSource Chiropractic has the right to use PHI for its internal management and legal compliance, it must do so responsibly and with appropriate safeguards to protect patient privacy. This includes ensuring that any third parties receiving PHI are bound by the same confidentiality standards and that any breaches are promptly reported. This is a standard practice in franchising, particularly in healthcare, to ensure compliance with HIPAA and other privacy regulations.