Under the Microscope: Your Business Associates Are Now the OCR’s Top Priority

August 4, 2025

 

Let’s talk paperwork. While that might not seem like the most interesting or important thing to focus on when running your practice, having the right documentation is key to its success. 

A Business Associate Agreement (BAA) is one of the many documents you need to be HIPAA compliant when running a practice. 

When working with Business Associates (BAs), or the third-party vendors who can access your practice’s Protected Health Information (PHI), you must have a signed agreement in place. These BAs can include anyone from your IT company to the company that handles your shredding. In short, if a business has any access to PHI, it’s required. 

The Office for Civil Rights (OCR) has put Business Associates (BAs) in the hot seat, with proposed new legislation strengthening their requirements and millions of dollars in fines imposed this year alone. It’s time to take a fresh look at your partnerships, and the best place to start is by having a solid BAA. 

 

What does a BAA do? 

First things first, what does a BAA even do for your practice? What does it include? 

Well, this required agreement outlines all responsibilities your practice and business partner must follow when handling PHI. The document includes the definition of PHI, when the BA can use the data, and how each party must secure data. This legally binding agreement ensures each party understands the serious nature of handling PHI. 

Overall, it’s another layer of protection to clearly define your relationship with a BA. 

A BAA is essential, especially when a Business Associate experiences a data breach. Business Associates are frequent targets for malicious actors. 

One of the first fines in 2025 was a $90,000 penalty for a ransomware breach that targeted a data hosting company. This breach exposed the PHI of patients from 12 different healthcare practices. These 12 healthcare practices would also need a BAA with the hacked party. If not, the Covered Entity could also be liable for the BA’s missteps. 

The OCR has also fined Covered Entities for missing a BAA.

Here’s a prime example: A healthcare provider was in a nasty dispute with their BA. They even reported the BA to the OCR, claiming the BA was holding PHI hostage for a $50,000 payment.

But here’s where it took a turn: The OCR didn’t just investigate the BA; they also focused on the healthcare provider.

The result? The OCR slapped the provider with a $100,000 fine for missing crucial documentation, including, you guessed it, a BAA.

 

Keeping BA Partnerships Secure

While ensuring documentation is in order is no one’s idea of fun, protecting your practice and keeping patients’ data safe is imperative. 

With the right solution, your practice can make documentation a piece of cake. While a BAA may not be as appealing as chocolate fudge, software can streamline the process, creating a legally sound and complete document that is just as satisfying.

Meet with an expert today to learn more about ensuring compliant vendor relationships. 

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