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First Healthcare Compliance CONNECT December 2020

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Q&A: HIPAA <strong>Compliance</strong> for<br />

Business Associates<br />

Catherine Short<br />

Rachel V. Rose, JD, MBA, presented the webinar “HIPAA <strong>Compliance</strong> for<br />

Business Associates” recently and a recording can be viewed here. Rachel<br />

returned to answer many commonly asked questions from the webinar.<br />

Are business associates subject to HIPAA penalties?<br />

Yes. As stated in both the HITECH Act and the Final Omnibus Rule, 78 Fed. Reg. 5566 (Jan. 25, 2013),<br />

business associates, which include subcontractors, can be held directly liable for HIPAA violations. For<br />

example, in 2016, a business associate’s failure to safeguard the protected health information of nursing<br />

home residents led to a $650,000 monetary penalty being assessed by HHS OCR. (https://www.hhs.gov/<br />

hipaa/for-professionals/compliance-enforcement/agreements/catholic-health-care-services/index.html)<br />

If you were to give business associates and subcontractors one item that they need to do annually,<br />

what would it be?<br />

Annual Risk Analysis because all technical, administrative and physical safeguards would be identified and<br />

corrected.<br />

Is an indemnification provision required in BAAs?<br />

No. In my practice, I see them included quite a bit; however, this particular provision is not a requirement<br />

under 45 CFR §164.504(e)(1) or that HHS indicated was preferred. See https://www.hhs.gov/hipaa/forprofessionals/covered-entities/sample-business-associate-agreement-provisions/index.html.<br />

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<strong>First</strong> <strong>Healthcare</strong> <strong>Compliance</strong>, LLC © <strong>2020</strong>

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