Does HealthSource Chiropractic require franchisees to comply with HIPAA and the HI-TECH Act?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
Also, you must comply with any and all federal, state and/or local privacy laws pertaining to your care recipients, including but not limited to HIPAA and the HI-TECH Act and related laws, rules and regulations. In all cases, you must also comply with laws that apply generally to all businesses. You should investigate these laws and consult with a legal advisor about whether these and/or other requirements apply to your franchise. Violations of these laws and regulations may result in substantial civil or criminal penalties for individuals or entities.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 10–13)
What This Means (2025 FDD)
According to HealthSource Chiropractic's 2025 Franchise Disclosure Document, franchisees must comply with federal, state, and local privacy laws, including HIPAA and the HI-TECH Act. This requirement extends to all laws, rules, and regulations related to the care recipients.
This means that as a HealthSource Chiropractic franchisee, you are legally obligated to protect the privacy and security of your patients' health information. HIPAA (Health Insurance Portability and Accountability Act) sets the standard for protecting sensitive patient data, and the HI-TECH (Health Information Technology for Economic and Clinical Health) Act strengthens HIPAA rules, particularly concerning electronic health records. Failure to comply with these laws can result in significant civil or criminal penalties for both individuals and the business entity.
Given the complexity of healthcare regulations, HealthSource Chiropractic advises prospective franchisees to consult with a legal advisor to ensure full compliance with all applicable laws. This is a standard recommendation in franchise agreements within the healthcare sector, as the regulatory landscape is often intricate and varies by jurisdiction. By seeking legal counsel, franchisees can better understand their obligations and implement appropriate policies and procedures to safeguard patient information and avoid potential legal repercussions.