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The agreement must describe permitted and required PHI uses for the business associate and state that the business associate will not use or further disclose the protected health information other than as permitted or required by the contract or as required by law.
While it is almost always necessary for a Business Associate to sign an agreement with a Covered Entity when a Business Associate is creating, receiving, maintaining, or transmitting ePHI of behalf of the Covered Entity, if a third party service provider the company is not providing a covered service, (i.e., a
Business associate services are: legal; actuarial; accounting; consulting; data aggregation; management; administrative; accreditation; and financial.
Provide that the Business Associate/Subcontractor will not use or further disclose PHI other than as permitted or required by the contract or as required by law; Require the Business Associate/Subcontractor to use appropriate safeguards to prevent inappropriate PHI use or disclosure.
Entities that are business associates must execute and perform according to written business associate agreements that essentially require the business associate to maintain the privacy of PHI; limit the business associate's use or disclosure of PHI to those purposes authorized by the covered entity; and assist covered
BAAs must be signed by all Covered Entities, whenever their business associate will handle PHI that passes through the Covered Entity first.
A business associate contract is not required with persons or organizations whose functions, activities, or services do not involve the use or disclosure of PHI, and where any access to PHI by such persons would be incidental, if at all.
For example, the contract must: Describe the permitted and required uses of protected health information by the business associate; Provide that the business associate will not use or further disclose the protected health information other than as permitted or required by the contract or as required by law; and Require