What is a business associate according to HIPAA?

A business associate, as defined by HIPAA, is a person or entity that performs functions or activities on behalf of a covered entity that involve the use or disclosure of protected health information (PHI). This definition includes a wide range of services provided by third parties, such as claims processing, billing, data analysis, and IT services.

The relationship between the covered entity and the business associate requires that there be a contract in place to ensure that PHI is handled according to HIPAA regulations, including provisions for privacy and security. This contractual arrangement is essential for maintaining compliance and protecting patient information.

Understanding this definition is crucial as it underscores the responsibilities both parties have in safeguarding health information and ensures that any business associate is fully aware of their legal obligations regarding PHI.