Business Associate Agreement Indemnification Language

According to HIPC rules, a counterparty is any natural or legal person who receives, treats, creates or interagulates with it PHI for or on behalf of a covered enterprise to assist the covered enterprise in carrying out its activities. As soon as the relationship between the parties is covered by the HIPC definition, a counterpart relationship is established. For this reason, the execution of a BAA is not necessary. While a covered entity is responsible for the receipt of a BAA by each counterparty, the obligations of the covered entity end with reasonable efforts to obtain an executed BAA. They are often boring, dense and technical, but BAAs are important both legally and commercially and deserve our attention. Failure to seize a BAA when a BAA is required can be a HIPAA violation that results in significant liability, as evidenced by some recent comparisons from the Department of Health & Human Services (HHS). 1 Consideration that does not precede an unauthorized disclosure or disclosure prescribed by the current BAA may be sanctioned civilly and, in some cases, criminal sanctions. In addition, parties are often subject to BAAs that contain unilateral offsettings and other provisions that can be devastating to an organization in the event of a violation of the HIPC. Before entering a BAA, it is important to confirm that a HIPAA counterpart relationship actually exists and that the BAA is actually needed. Otherwise, the parties assume unnecessary and unwanted liability.

Health lawyers are sometimes able to help structure relationships to avoid linking BAA requirements. As described above, BAAs are entered between HIPAA covered entities and HIPAA business partners. They are also seized between HIPAA counterparties and their subcontractors (who are also CONSULTANTSHIPAA counterparties under HIPAA rules). Although three-party agreements are not required under the rules, covered companies sometimes require subcontractors of their counterparties to enter into tripartite agreements in order to create a contractual nature between the covered entity, the counterparty and the counterparty`s subcontractor. It is also important to note that the term `counterparty` does not include those who carry out such an activity as a member of the staff of the undertaking concerned. . . .

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