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The HIPAA Privacy Rule requires all Covered Entities to have a signed Business Associate Agreement (BAA) with any Business Associate (BA) they hire that may come in contact with PHI.
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.
As such, a BAA is required any time you are working with a vendor or contractor who will come into contact with PHI on your organization's behalf. Keep in mind, HIPAA requires you to sign the BAA with your business associate before sharing any PHI with them.
A BAA is an agreement entered into specifically to protect PHI. As such, it lists safeguards for that purpose. It also outlines steps to take in case of a breach or other situations that could compromise the PHI. A non-disclosure agreement simply requires the signer to keep certain information confidential.
Who Needs a Business Associate Agreement? Any Business Associate you share PHI or ePHI with over the course of the work they've been hired to do is who needs a Business Associate Agreement.
The first thing that a good BAA must include is an acknowledgement that the organization issuing it is beholden to HIPAA regulation. And the second thing it must include is an acknowledgement that the organization signing the BAA is beholden to HIPAA regulation.
Basically, if your organization interacts with protected health information (PHI) from a health provider, health insurer, or similar covered entity (CE) your organization is considered a business associate (BA) which must comply with all HIPAA/HITECH regulations and be HIPAA compliant.
A BAA is an agreement entered into specifically to protect PHI. As such, it lists safeguards for that purpose. It also outlines steps to take in case of a breach or other situations that could compromise the PHI. A non-disclosure agreement simply requires the signer to keep certain information confidential.