What is a business associate?

A business associate is defined as a third-party entity that performs a function or activity on behalf of a covered entity, which often requires access to Protected Health Information (PHI). Covered entities, such as healthcare providers, health plans, and healthcare clearinghouses, may need to share sensitive health information with these business associates to carry out various services, including billing, data analysis, and claims management.

This relationship is crucial because while these business associates perform essential functions, they are also required to comply with HIPAA regulations to safeguard PHI. A business associate agreement is typically established to outline the responsibilities of the business associate in maintaining the confidentiality, integrity, and security of the PHI they handle.

In contrast, the other options do not accurately reflect the definition of a business associate. A patient receiving health information does not carry out functions on behalf of the healthcare provider; an employee of a healthcare provider is directly associated with the covered entity, which does not fit the definition of a business associate; and a family member of a patient is not involved in the business relationship necessary to qualify as a business associate.