What is an example of a business associate?

A business associate is defined under HIPAA as a person or entity that performs functions or activities on behalf of, or provides certain services to, a covered entity that involves the use or disclosure of protected health information (PHI). In this context, a third-party billing company that accesses PHI for billing purposes directly fits the definition of a business associate. This company typically handles sensitive patient information to submit claims to insurance, among other tasks, thus requiring access to PHI.

On the other hand, a healthcare provider treating a patient is considered a covered entity rather than a business associate because they are directly involved in patient care. Similarly, a healthcare insurance company is also classified as a covered entity since they process health claims and provide insurance services directly related to patient care. A hospital's surgical team operates within the covered entity framework as well, focusing on delivering care rather than handling PHI for another entity's benefit. Therefore, the third-party billing company clearly stands out as an example of a business associate as it is tasked with carrying out operations that necessitate access to protected health information.