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Business Associate Definition

According to current HIPAA regulations, the definition of a "business associate" is any entity that uses or discloses protected health information (PHI) on behalf of a covered entity (e.g. group health plan,  hospital, etc.).

Furthermore, it is any person who, on behalf of a covered entity, performs (or assists in the performance of) a function or activity involving the use or disclosure of PHI.  [45 CFR § 160.103.] Download this easy flow chart to determine if you or your organization is a Business Associate.

Examples of a Business Associate

Examples of functions or activities that involve the use of disclosed PHI given in the HIPAA regulations include:

  • Claims Processing / Admin
  • Benefit Management
  • Data Analysis
  • Practice Management
  • Utilization Review
  • Re-Pricing
  • Quality Assurance
  • Billing
  • [45 CFR § 160.103.]

    In addition, HIPAA regulations specifically identify the following services which, if they involve PHI and if they are performed by a non-workforce member, will make that person or entity a business associate:

  • Legal
  • Actuarial
  • Accounting
  • Consulting
  • Data aggregation
  • Management
  • Administrative
  • Accreditation
  • Financial
  •  


    [45 CFR § 160.103.]
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    Business Associate Definition
    QUICK HIPAA FACTS
    In a recent BridgeFront study, more than 95% of compliance professionals said they train their staff annually.

    There are three main requirements for HIPAA compliance:

  • Annual staff education
  • Internal policies and procedures
  • A Business Associate agreement

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