What is the purpose of a business associate agreement?

The purpose of a business associate agreement (BAA) is to define how protected health information (PHI) will be handled and protected by business associates. Under HIPAA (Health Insurance Portability and Accountability Act), a business associate is any entity that performs functions or activities on behalf of a covered entity that involves the use or disclosure of PHI.

The agreement outlines the business associate's responsibility to safeguard PHI, ensuring they implement appropriate safeguards and comply with applicable HIPAA regulations. It also specifies the permitted uses and disclosures of PHI by the business associate, provides for the reporting of breaches, and establishes protocols for the return or destruction of PHI once the agreement is terminated. This helps ensure that PHI remains secure and that business associates understand their legal obligations regarding the handling of sensitive health information.