Yes, that is correct. In order to comply with the Health Insurance Portability and Accountability Act (HIPAA) privacy rule, business associates and vendors that handle protected health information (PHI) on behalf of medical facilities must have a signed Business Associate Agreement (BAA) with those facilities.
A BAA outlines the responsibilities and requirements for both parties concerning the handling and safeguarding of PHI. It ensures that the business associate will implement appropriate safeguards to protect the information and will comply with HIPAA regulations. The agreement must also explicitly state how the PHI can be used or disclosed and what actions must be taken in the event of a data breach.
Failure to have a signed BAA can result in civil and criminal penalties under HIPAA. Therefore, healthcare providers and their business associates must ensure that these agreements are in place and are adhered to, to maintain compliance and protect patient privacy.
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