Allocating Risk in Business Associate Agreements

Due to opportunities for cost-savings through outsourcing, entities and individuals covered under the Health Insurance Portability and Accountability Act (HIPAA), as amended by the Health Information Technology for Economic and Clinical Health Act (HITECH), are increasingly turning to contractors and vendors to perform certain billing, claims and even customer follow-up services on their behalf. These health plans, clearinghouses and healthcare providers (covered entities) contract with such vendors (business associates) to access the protected health information (PHI) necessary to perform these services through a business associate agreement (BAA). More


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