12. Beware of stricter laws. When assessing their compliance, business partners should also consider other federal or state data protection laws. To the extent that a state federal or other law is stricter than hipAA, business partners must comply with the most restrictive law.43 In general, a law is stricter than hipAA if it offers individuals better privacy protections or gives individuals more rights with respect to their PHI.44 There are many more business partners than health care covered. The size and complexity of healthcare processes means that PSRs are located in many locations, maintained on-site and off-site, and transmitted to and from addresses, electronically and by mail. A hospital, health plan, or doctor`s office has multiple providers to help them provide services. The healthcare sector relies on outsourcing important parts of the business, from billing to data collection and storage. An associated subcontractor is a person or entity to whom a business partner delegates a function, activity or service.3 Although a covered entity receives assistance from a business partner, BAs apply their own assistance. HIPAA designates these individuals and companies as business associate subcontractors. HIPAA requires a covered company and its business partners who come into contact with PHI as part of their services to sign a Business Partnership Agreement (BAA), which is a contract between a covered company and an organization or person that sets out that organization`s obligations and responsibilities with respect to the protection of protected health information, which are exchanged between the two parties.
All business partnership agreements must detail the following: According to HHS, covered companies can only disclose PSR to a single company to help it perform its health functions, and not for the use or purposes independent of the business partner. “1 For example, a business partner/processor cannot use the covered company`s PSR for its own email campaign. A staff member of the affected company is NOT a business partner, nor is anyone who might accidentally encounter patient information (such as a concierge service or electrician). Question: We have a regular weekly cleaning service that comes to our office and their team may monitor patients in the waiting room or even accidentally see patient information on the desk or in the trash. Are you a business partner? According to the privacy policy, any business that meets the definition of a covered entity, regardless of its size or complexity, is generally subject to the privacy policy in its entirety. However, the privacy rule provides a way in which many affected companies can avoid the global application of the rule through the provisions on the designation of hybrid companies. This designation determines which parts of the company must comply with the data protection rule. Commercial Associate Contracts. A covered entity`s contract or other written agreement with its counterparty must contain the elements specified in 45 CFR 164.504(e). For example, the contract must: describe the authorized and required use of the protected medical information by the business partner; Provide that business partner does not use or disclose Protected Health Information other than to the extent contractually permitted, required or required by law; and Request the Business Partner to take appropriate safeguards to prevent the use or disclosure of Protected Medical Information not provided for in the Agreement. If a covered entity becomes aware of a material breach or breach of the contract or agreement by the business partner, the affected entity is required to take reasonable steps to remedy the breach or terminate the breach and, if such measures fail, to terminate the contract or agreement.
If termination of the contract or agreement is not possible, an affected company is required to report the problem to the Office of Civil Rights (OCR) of the Department of Health and Human Services (HHS). Please see our model contract for business partners. According to HHS, the business partnership/subcontractor agreement must contain the following information: 1. Determine if the business partner rules apply. Out of ignorance or a plethora of caution, affected companies may require certain companies to sign business partnership agreements, even if the company is not a “business partner” within the meaning of HIPAA. Companies should avoid taking on commercial responsibilities or entering into commercial partnership agreements if they are not really trading partners. Significantly, the following companies are not business partners: (i) companies that do not create, maintain, use or disclose PHI to provide services on behalf of the covered entity; (ii) members of the staff of the undertaking covered; (iii) other health care providers in treatment; (iv) members of an organised health care agreement; (v) companies that use phi while providing services on their own behalf, and not on behalf of the covered entity; and (vi) companies that are only channels of the IHP.18 For more information on how to avoid business partnership agreements, please visit this link. For example, a university may be a single legal entity that includes a teaching medical center hospital that performs electronic transactions for which HHS standards have been adopted. Since the hospital is part of the legal entity, the entire university, including the hospital, will be a covered unit. However, the university may choose to be a hybrid entity. To do this, the hospital must be designated as a component of care.
The university also has the option to include other components that perform covered functions or functions similar to those of a business partner in the designation. Most data protection regulations would then only apply to the hospital part of the university and all other planned components. The privacy policy applies only to RPS created, received, or managed by or on behalf of these components. Disclosures of PSR by the hospital to the rest of the university are governed by the privacy rule in the same way as disclosures to entities outside the university. Question: Our doctor`s office uses data backup via Google Cloud Storage [or Amazon Web Service]. They say they are HIPAA compliant. Do we still need a business partnership agreement with Google [or AWS]? Entrepreneurs who work exclusively for your company, people with other customers, and employees hired through a company are not business partners. However, your company is liable if any of these people violate PSR. There are many more business partners than healthcare companies covered, as the entire industry depends on outsourcing critical parts of its business services such as billing, storage, software, and debt collection to external vendors. Even individual contractors and suppliers of designated business partners who can create, receive, maintain, or send RPS on behalf of their parent organization are also considered business partners and must be HIPAA compliant, as the omnibus rule expanded the scope of HIPAA in 2013. 2) Assess whether business partners are HIPAA compliant A business partner may be a person or company that provides services to a HIPAA company that requires it to have access, store, use, or transfer protected health information.
The list of trading partners is long and the range of companies included in the definition of trading partner is diverse. Answer: Offshore business partners are allowed under HIPAA and the law applies to them in the same way as those located in the United States. As a covered company, you want your business partnership agreement to require you to accept U.S. jurisdiction…