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Beefed Up IT

Glossary

Business associate agreement (BAA)

Also called: Business associate contract

In one sentence

A BAA is the written contract HIPAA requires between a covered entity (like your practice) and any vendor that creates, receives, stores or transmits patient information on your behalf.

Under HIPAA, a business associate is any outside company that handles protected health information for you — your IT provider, your cloud email service, your billing company, your shredding service, your practice-management software vendor. Before that company touches patient data, HIPAA requires a written agreement (45 CFR 164.502(e) and 164.504(e)) that spells out what they may and may not do with it.

A BAA has to say, among other things, that the vendor will use the information only for the job you hired them to do, protect it with appropriate safeguards under the HIPAA Security Rule, report security incidents and breaches to you, pass the same obligations down to any subcontractors who touch the data, and return or destroy the information when the contract ends.

Why it matters for a small practice: if you share patient data with a vendor that hasn't signed a BAA, that's a HIPAA problem for you — even if the vendor never does anything wrong. It's also one of the first things an auditor or investigator asks for. Keep a simple list of every vendor that touches patient data and where each signed BAA lives.

Example: a dental office moves its email to Microsoft 365. Microsoft offers a BAA through its standard online terms for in-scope services, so the practice confirms it's in place. The office also signs a BAA with its IT provider, because the IT team can see mailboxes and files while fixing problems. The free webmail account the front desk used to use, with no BAA available, gets shut down.

Read more in our BAA guide for practices.

Related terms

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