Business Associate Agreement (BAA)
What does Business Associate Agreement mean?
A Business Associate Agreement (BAA) is a legal contract required under HIPAA between a covered entity and any business associate that handles Protected Health Information (PHI).
How does a BAA work?
The BAA outlines the associate’s obligations, including safeguarding PHI, reporting breaches, and ensuring HIPAA standards are met. Both parties sign it before PHI is shared.
Why is a BAA important?
Without a BAA, both the covered entity and the associate risk HIPAA violations. Regulators consider BAAs a cornerstone of accountability when multiple organizations handle PHI.
FAQs about Business Associate Agreements (BAAs)
Vendors or partners like IT providers, cloud storage companies, and billing services that handle PHI on behalf of a covered entity.
Yes. HIPAA requires them whenever PHI passes to a third party.
Both organizations can face financial penalties, even if no data breach occurs.
BAAs must be reviewed and updated whenever services, vendors, or HIPAA rules change.
No. Only those with access to PHI require a BAA. Vendors that don’t handle PHI don’t need one.