Can covered entities share protected health information (PHI) with their business associates?

Covered entities are allowed to share protected health information (PHI) with their business associates for activities that are assigned to them, provided that there is a formal agreement in place. This agreement is known as a Business Associate Agreement (BAA), which outlines the permitted uses and disclosures of PHI, as well as the responsibilities of the business associate in protecting that information.

The sharing of PHI is an essential aspect of many healthcare operations. Business associates often perform critical functions that involve PHI, such as data storage, processing, and billing. However, sharing this information is strictly regulated to ensure compliance with HIPAA (Health Insurance Portability and Accountability Act). The BAA serves to safeguard the privacy and security of health information while enabling the covered entities to engage qualified services from their business associates.

The other options present restrictions that do not align with HIPAA regulations allowing for such sharing under appropriate conditions. For instance, while patient consent can provide additional legal grounds for sharing PHI, it is not a prerequisite for every instance where a covered entity shares PHI with a business associate as long as the sharing is for activities addressed in the BAA. Similarly, the stipulation regarding emergency services does not apply universally to all situations of sharing PHI, as business